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Globalization and Complementary Policies: Poverty Impacts in Rural Zambia

Globalization and Complementary Policies: Poverty Impacts in Rural Zambia

Chapter:
(p.373) 9 Globalization and Complementary Policies: Poverty Impacts in Rural Zambia
Source:
Globalization and Poverty
Author(s):
Jorge F. BalatGuido G. Porto
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226318004.003.0010

This chapter states that wages in Zambia accounted for only 6 percent of income for the rural poor in 1998. It specifically examines the links between trade, complementary policies, and poverty observed in Zambia during the last decade, and explores how new trade alternatives may bring about poverty alleviation in the future. Significant differences in the poverty rates across the regions are shown. As in the cases of cotton, tobacco, and maize, the magnitudes of the gains observed suggest that rural employment in commercial farms could be a good instrument for poverty alleviation. Moreover, the increase in market agriculture is associated with the observed increase in exports of nontraditional agricultural products. Rural Zambians would gain substantially from expanding world markets, particularly in terms of cotton, tobacco, and maize income as well as wage income.

Keywords:   wages, Zambia, trade, poverty, cotton, tobacco, maize, rural employment, market agriculture

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