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Country Commercial Guides for FY 2000: Zambia Report prepared by U.S. Embassy Lusaka, released July 1999   Note*

CHAPTER III: Political Environment

Political Relationship With The United States: Since the Movement for Multiparty Democracy (MMD) party came into government in November 1991, our bilateral relationship has generally been good. U.S. government officials and business representatives have enjoyed mostly prompt access to Zambian officials and policy makers. Zambia receives a significant amount of U.S. bilateral assistance. The U.S. also provides some military training and education. Peace Corps provides assistance through approximately 90 volunteers.

Political Issues Affecting the Business Climate: The business community pays close attention to the progress of privatization and the status of balance of payments support. The latter is dependent on donor concerns about democracy and governance issues in Zambia. The delay in privatizing ZCCM has contributed to a sharp drop in business confidence and activity. There is some antipathy in Zambia towards perceptions of foreign control of Zambia's resources and economy.

Political System, Election Schedule: Until 1991 Zambia was constitutionally a one-party state ruled by the United National Independence Party (UNIP). In 1991, a popular movement pushed for an end to the one-party state and adoption of multi-party democratic system. Multi-party elections were held in October 1991, and again in November 1996. The Movement for Multiparty Democracy (MMD) won landslide victories in both elections. The electoral process preceding the November 1996 elections was flawed, prompting a boycott by UNIP, but there is no evidence that the polling itself was significantly rigged or fraudulent. Several parties, including UNIP, participated in local government elections and parliamentary by-elections in 1998 and 1999. Elections in Zambia are generally peaceful, with only occasional minor incidents of politically inspired violence taking place.

The political system is a hybrid of the British and American systems. The one house, Parliament, has 150 seats. The head of government is an independently elected president who must draw his cabinet from members of parliament. Elections for both the President and Parliament occur simultaneously every five years. The President is limited to two five-year terms.

Orientation Of Major Political Parties: The MMD platform is for democracy, human rights, and free market economics. With some hiccoughs, the MMD has generally pursued this path since 1991. Following its electoral losses, UNIP dropped its socialist orientation for a "social market" approach, which they define as "capitalism with a social conscience." There are several other small parties, many of which broke away from the MMD. All favor market-oriented economies.