tutor2u | Zambia not gaining from copper prices

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Zambia not gaining from copper prices

Graham Watson

11th February 2017

A rather sad, but typical, development story from Zambia, where the BBC's Kennedy Gondwe highlights the fact that, despite the recent rise on the global price of copper, this hasn't served to boost the economy of Ndola, in the country's Copper Belt province.

Why? In part, uncertainty regarding government policy, but the real reason is the relative power of the different stakeholders - multinational mining companies, with monopoly/monopsony positions in product and factor markets are likely to be making higher profits.

Zambia has Africa's largest copper reserves and the world's third largest copper reserves.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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