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Introduction |
Home Small Farm 2 - KasameSelf-sufficiencyNext issue - Low Productivity of Traditional Farming Methods >> Like many small farms, this farm devotes most of its resources to the production of maize complemented with other staples such as sweet potatoes and beans. Most are grown for their own consumption but surpluses are sold for cash. The goal of the current government is to be self sufficient in both the production of maize and wheat. As well as being a staple crop maize is also used in the brewing industry and produces animal feed. Although the target of self-sufficiency has been met occasionally such as in 1986-6 subsequent years saw crops falling short of the demand. This has been due in part to the many droughts that Zambia faced such as the one in 1992 as well as inefficiencies in getting the maize supplies to the market.
Is the goal of producing all the food you eat yourself a reasonable one? If you personally had to grow your own food then you might have a pretty limited diet! In economics we learn that specialisation and the division of labour principal results in considerable gains to society in terms of increased output and greater variety of good. No doubt your breakfast this morning consisted of food grown all over the world. Clearly direct production does not allow for this. Countries specialise in the producing goods where they have absolute and comparative advantages and trade the resulting surpluses on the world markets. Economists such as Ricardo (1772-1823) argued that such specialisation and trade would result in welfare gains to the world. As Zambia has substantial reserves of copper surely it should devote its resources to producing copper and if necessary import maize from those countries that are efficient at producing maize? In terms of resources allocation self-sufficiency must be misguided. However the benefits of free trade often exist in theory rather than in practice. As a model the Ricardian view of free trade is based on unrealistic assumptions involving the free mobility of factors of production, zero transport costs and exchange rate costs in an global environment where all countries were willing to trade goods and services on equal terms. On the Copper Tour you will visit the copper belt and see the problems associated with copper production. Suffice it to say at present that relying on copper production to earn enough foreign exchange to purchasing maize from abroad is hazardous. If the copper industry collapsed the reallocation of resources from the mines to the land in order to produce the maize necessary to prevent millions dying from hunger would not happen, given the limited amount of land, low levels of productivity and lack of skills and expertise. One can perhaps see the sense then of the country trying to ensure that all its people are fed through using its own resources. Nevertheless due to the regularly occurring droughts domestic supply does match domestic demand and the government must resort to importing from South Africa or where the need for food is more urgent appealing for overseas food aid. Next issue - Low Productivity of Traditional Farming Methods >>
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