Do Interest Groups Matter in

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1 Do Interest Groups Matter in Economic Policy-Making? Reflections from a Zambian case study Lise Rakner WP 1994: 4 -I. W orking Paper Chr. Michelsen Institute Development Studies and Human Rights Bergen Norway ISSN

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3 Do Interest Groups Matter in Economic Policy-Making? Reflections from a Zambian case study Lise Rakner WP 1994: 4 Bergen, December 1994

4 11.1 CHR. MICHELSEN INSTITUTE Development Studies and Human Rights Working Paper WP 1994: 4 Do Interest Groups Matter in Economic Policy- Making? Reflections from a Zambian case study Lise Rakner Bergen, December pp. Summary: The current debate within development research strongly emphasise the role of interest groups in developing and sustaining democratic and liberal economic reforms. With this debate as its point of departure, the paper discusses to what extent interest groups actually matter in Sub- Saharan Africa. Did interest groups shape the former policies of the one-party regimes and are organised interests likely to respond to market-based economic reforms? Arguing that political institutions must ultimately be understood within each national historical context, the general discussion of the paper is ilustrated with references to Zambia. The paper was originally presented at the conference "Democratisation in developing countries: Social, economic and political consequences", held at Chr. Michelsen Institute, 3-5 Februar Sammendrag: Nyere utviklingsforskning vektlegger sterkt betydningen av interesseorganisasjoner i forhold til fremveksten og konsolideringen av demokratiske og økonomiske reformer. Med utgangspunkt i denne debatten reiser artikkelen spørsmålet om interesseorganisasjoner faktisk har innflytelse over politiske og økonomiske prosesser i Afrika. Betydningen av å studere institusjoner med utgangspunkt i deres spesifikke historiske og nasjonale kontekst vektlegges sterkt og poenget ilustreres med eksempler fra forfatterens eget feltarbeid i Zambia. Artikkelen ble opprinnelig presentert på konferansen "Democratisation in developing countries: Social, economic and political consequences", som ble holdt ved Chr. Michelsens Institutt februar Indexing terms: Democracy Economic reform Interest groups World Bank Zambia Stikkord: Demokrati Økonomisk reform Interesse-organisasjoner Verdensbanken Zambia To be ordered from Chr. Michelsen Institute, Fantoftvegen 38, N-5036 Fantoft-Bergen, Norway. Telephone: Telefax: cmi(lamadeus.cmi.no

5 Contents Introduction L The compatibility of political and economic liberalisation 2 Interest groups in Sub-Saharan Africa. The theory of urban bias 4 Interest groups and economic policy-making 6 of urban bias 8 State and interest group relations in Zambia. Assessing the relevance Political and economic liberalisation in Zambia 12 Concluding remarks 15 Bibliography 17

6 Haggard, Stephan and Robert Kaufman (1989), "Economic Development in New Democracies" in Joan M. Nelson et al., Fragile Coaliions: The Politics of Economic Adjustment. New Brunswick: Transaction Books. Haggard, Stephan and Robert Kaufman (eds.) (1992), The Politics of Adjustment: International Constraints, Distributive Politics, and the State. Princeton: Princeton University Press. Healey, John and Mark Robinson (1992): Democracy, Governance and Economic Policy. Sub-Saharan Africa in Comparative Perspective. London: Russell Press and Overse as Development Institute. Herbst, Jeffrey (1993), The Politics of Reform in Ghana, Berkeley and Los Angeles: University of California Press. Howard, Rhoda (1983), "The Full Belly Thesis: Should Economic Rights Take Priority over Civil and Political Rights? Evidence from Sub-Saharan Africa", in Human Rights Quarterly, 5, L (November) pp Jackson R. H. and C. G. Rosberg (1982), Personal Rule in Black Africa. Prince, Autocrat, Prophet, Tyrant. Berkeley: University of California Press. Landell-Mils, Pierre (1992): "Governance, Cultural Change, and Empowerment", in Journal of Modern African Studies, 30, 4. Lemarchand, Rene (1992), "Africa's Troubled Transitions", Journal of Democracy VoL. 3, No. 4. Lipset, Seymour Martin (1959): "Social Requisites of Democracy: Economic Development and Political Legitimacy", in American Political Science Review, 53, Loxley, John and Roger Young (1990), Zambia: An Assessment of Zambia's Structural Adjustment Experience. Ottawa: The North South Institute. Ncube, Sakala and N. Ndulo (1987), "The International Monetary Fund and the Zambian Economy - a Case", in Kjell Havnevik (ed.) (1987), The IMF and the World Bank in Africa. Conditionality, Impact and Alternatives. Uppsala: Scandinavian Institute of African Studies. Nelson, Joan (ed.) (1990), Economic Crisis and Policy Choice. The Politics of Adjustment in the Third World. Princeton: Princeton University Press. Nelson, Joan (1993), "The Politics of Economic Transformation: Is the Third World Experience Relevant in Eastern Europe?", in World Politics, VoL. 45, No. 3. Olson, Mancur (1971): The Logic of Collective Action. Cambridge, MA: Harvard University Press. Rakner, Lise (1992), Trade Unions in Processes of Democratisation. A Study of Party Labour Relations in Zambia. Bergen: CMI Report Series R: 6. Sandbrook, Richard (1993), "Political Liberalization and the Politics of Economic Reform", Paper prepared for USAID workshop on "Economic Reform in Africa's New Era of Political Liberalization", Washington DC April Sandbrook, Richard (1985): The Politics of Africa's Economic Stagnation. Cambridge: Cambridge University Press. 18

7 --i- SØrensen, Georg (1991): Democracy, Dictatorship and Development. London: MacMilan Press. World Bank (1981), Accelerated Development in Sub-Saharan Africa. An Agenda for Action. Washington D.C.: World Bank. World Bank (1989), From Crisis to Sustainable Growth. Washington D.C.: World Bank. World Bank (1992), Governance and Development: Washington D.C.: Wodd Bank Africa Confidential (London) National Mirror (Lusaka) The Weekly Post (Lusaka) 19

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9 Recent W orking Papers D 1992: 4 FJELDSTAD, Odd-Helge Økonomisk velferdsteori og fordelingsaspektet. Bergen, august 1992, 22 s. D 1992: 5 FJELDSTAD, Odd Helge Multiple inflasjonslikevekter og deres stabilitet: En drøfting av stabiliseringsprogrammene i Argentina, Brasil og Israel på midten av 1980-tallet. Bergen, august s. D 1992: 6 NORBYE, Ole David Koht EF og bistanden. Virkninger på norsk bistand av et eventuelt norsk EF-medlemskap. Bergen, august 1992, 21 s. D 1992: 7 CHERU, Fantu Constraints for a conservation-based agricultural development policy in Ethiopia. A base line study in Fedis Awraja. Bergen, September 1992, 37 pp. D 1992: 8 TJ0NNELAND, Ellng Njå1 Universitet og forsking i SØr-Afrika. Utfordringar etter apartheid og akademisk boikott. Bergen, oktober 1992, 16 s. D 1992: 9 OFSTAD, Arve Afrikas Økonomiske krise - finnes det grunnlagfor reformer? Bergen, desember 1992, 15 s. D 1992: 10 ALAM, Mahmudu1 Secondary and higher secondary education in Bangladesh. Its growth and state expenditures: A time-series analysis of Bergen, December 1992,23 pp. D 1993: L EADI - European Association of Deve10pment Research and Training Institute. W orking Group on Information and Documentation Development policy, research and information: Isolation or interaction? Tilburg, The Netherlands, 1-4 September Bergen, February 1992, 167 pp. D 1993: 2 TJOMSLAND, Marit "The educated way of thinking". Individualisation and Islamism in Tunisia. Bergen, April 1992, 15 pp. WP 1993: L GRANBERG, Per Macro-econornic effects of development plan expenditures. Aframeworkfor analysis, with special reference to Uganda. Bergen, Ju1y 1993, 51 pp. WP 1993: 2 DANEVAD, Andreas Hvorfor har militæret fortsatt makten i Burma? Bergen, september 1993,27 s. WP 1993: 3 B0RHAUG, Kjetil From policy guidelines to problem solving. A critical assessment of the national conservation strategies of Botswana and Zambia. Bergen, November 1993, 61 pp. WP 1993: 4 ANGELSEN, Arild Individual choice under uncertainty. Bergen, December 1993, 27 pp. WP 1994: L ANGELSEN, Arild Shifing Cultivation and "Deforestation ". A Study from Sumatra, Indonesia. Bergen, November 1994,28 pp. WP 1994: 2 SUMAILA, Ussif Rashid Non-cooperation in fish exploitation. The case of irreversible capital investment in the Arcto-Norwegian Cod Fishery. Bergen, December 1994, 24 pp. WP 1994: 3 ANGELSEN, Arild Shifing cultivation expansion and intensity of production: The open economy case. Bergen, December 1994, 52 pp.

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