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Economic Adjustment, the Mining Sector and the Real Wage in Zambia

In: Constraints on the Success of Structural Adjustment Programmes in Africa

Author

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  • Dennis Chiwele

Abstract

Real wage flexibility is considered essential to a successful implementation of conventional IMF and World Bank programmes. And yet the two institutions have been pessimistic concerning the flexibility of real wages in the Third World. They attribute wage rigidity to institutional factors — workers’ demands for higher wages and governments’ liberality in responding to these demands (e.g. IBRD, 1981: 92–93). Thus, to help sustain the decline in the real wage induced by a devaluation, wage restraint measures tend to feature prominently in IMF and World Bank programmes. But the general decline in developing countries’ real wages in the 1980s, even in countries with a long tradition of ‘strong’ labour unions such as those in Latin America, raised questions as to whether the role of institutional factors in real wage determination had not been overstated.

Suggested Citation

  • Dennis Chiwele, 1996. "Economic Adjustment, the Mining Sector and the Real Wage in Zambia," Palgrave Macmillan Books, in: Charles Harvey (ed.), Constraints on the Success of Structural Adjustment Programmes in Africa, chapter 11, pages 210-233, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-24373-0_11
    DOI: 10.1007/978-1-349-24373-0_11
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