world capitalism

"Low income countries are more exposed to the current economic downturn than previously, as they are more integrated in the world economy"

At the town of Luanshya over 3000 copper miners, directly employed and on contracts, lost their jobs at the end of January after the owners announced that the mine was no longer economically viable.

Copper mining is the most important industry in Zambia, accounting for 90% of Zambia's exports and directly employing 50,000 workers. But the price of copper has slumped on global markets, falling from a high of nearly $9,000 per ton last year to just over $3000 per ton now. Zambia has already been forced to abandon its windfall tax on copper mining, which was set to add $450m per year to its anti-poverty budget . Zambia is still one of the world's poorest countries, with 60% of the population living below the $2 per day poverty line .

The collapse of the kwacha, down 36% against the dollar so far, has spread the economic pain even more widely.

The International Monetary Fund says that, because of its dependence on copper, Zambia is one of the poor countries that "highly vulnerable to the adverse effects associated with the global recession." The IMF warns that "commodity prices are unlikely to recover while the global economy remains weak" and says that "low income countries are more exposed to the current economic downturn than previously, as they are more integrated in the world economy."