A Simple Glance at Zambia’s Financial Globalization

Abstract

This paper looked at Zambia’s financial globalization situation and policy stance over the last 10 to 15 years. In particular, it described and assessed the evolution in the country’s main external environment as well as policy stance over the last 10 to 15 years period. It further looked at the impact on the country of the global economic and financial crisis and finally identified and proposed cures to the country’s main current financial related vulnerabilities. The paper concludes that Zambia is a very financially open country. Because of this, the country has always been vulnerable to external shocks. During the global financial crisis, the country witnessed a reduction in capital flows, a situation that negatively affected the economy. The paper then recommends that the country should embrace a culture of building reserves, engage in export diversification, and reduce on its imports among other key measures.