Introduction
It is estimated that over 70% of the population of Zambia live in absolute poverty. Once an economy experiences such deprivation there are a number of forces preventing the country from moving out of what is called the development trap or the vicious cycle of poverty. Ironically, some of the policies that the government is introducing to stimulate growth and development are actually worsening the level of poverty in the country.
Step 1
Look up in the glossary what is meant by absolute poverty and relative poverty.
1. Look at the photograph of the Zambian family home in Kafue National Park. What evidence can you find from the photograph to support the view that they are living in poverty? What other evidence might you want to see to for you to conclude that they are living in poverty?
2. Using the data in the resources section find five different indicators that would support the claim that a large proportion of the population in Zambia live in absolute poverty.
3. For each one explain why they are an indicator of poverty
Step 2
1. Consider the two vicious cycles of poverty models. Write a brief summary of each.
2. Examine the data shown in the two tables below. Does the data provide evidence to support the existence of the vicious cycles of poverty? Explain your reasons using the data to support your answer.
| 1996 | Zambia | Kenya | Netherlands | UK | Japan |
| Low productivity and Low income GDP per capita | 300 | 372 | 18369 | 14096 | 25084 |
| Low savings Gross domestic savings as a % of GDP | 10 | 11 | 26 | 15 | 30 |
| Low investment Gross domestic investment as a % of GDP | 15 | 19 | 20 | 16 | 30 |
| 1997 | Zambia | Kenya | Netherlands | UK | Japan |
| Low productivity and Low income GDP per capita | 300 | 372 | 18369 | 14096 | 25084 |
| Poor health (1993) Under-five mortality rates (per 1000 live births) | 202 | 87 | 6 | 7 | 6 |
| Poor education Adult Literacy rate | 75.1 | 79.3 | 100 | 100 | 100 |
Human Development Report 1999 UNDP
Step 3
1. Education is seen as being a very important factor that can break down the cycle of poverty. Consider the type of education that you have followed since starting school. Do you think that this would be an appropriate education for a child living in a rural village in Zambia? Write a paragraph giving your arguments.
Step 4
1. Low levels of savings and investment are common characteristics of low-income countries such as Zambia. Microfinance organisations such as the PULSE scheme are becoming more important in channelling money from small-scale savers to small-scale entrepreneurs.
Why do you think normal commercial banks have been unsuccessful in providing this traditional function of banks?
2. Read the section on Microfinance in the Aid Tour. What is the difference between a microcredit scheme and a microfinance scheme? What do you think are the relative benefits of these two services?
