Zambia's population comprises more than 70 Bantu-speaking tribes. Some tribes are small, and only two have enough people to constitute at least 10% of the population. Most Zambians are subsistence farmers. The predominant religion is a blend of traditional beliefs and Christianity. Dialects and local languages include Bemba, Tonga, Nyanja, Lozi, Luvale, Ndembu (Lundu), and Kaonde.

Expatriates, mostly British (about 15,000) or South African, live mainly in Lusaka and in the Copperbelt in northern Zambia, where they are employed in mines and related activities. Zambia also has a small but economically important Asian population, most of whom are Indians. The country is 42% urban.
 

Zambia maintains an embassy in the United States at 2419 Massachusetts Avenue, NW, Washington, DC 20008 (tel. 202-265-9717).

Zambia became a republic immediately upon attaining independence in October 1964. The constitution promulgated on August 25, 1973, abrogated the original 1964 constitution. The new constitution and the national elections that followed in December 1973 were the final steps in achieving what was called a "one-party participatory democracy."

The 1973 constitution provided for a strong president and a unicameral National Assembly. National policy was formulated by the Central Committee of the United National Independence Party (UNIP), the sole legal party in Zambia. The cabinet executed the central committee's policy.

In accordance with the intention to formalize UNIP supremacy in the new system, the constitution stipulated that the sole candidate in elections for the office of president was the person selected to be the president of UNIP by the party's general conference. The second-ranking person in the Zambian hierarchy was UNIP's secretary general.

In December 1990, at the end of a tumultuous year that included riots in the capital and a coup attempt, President Kaunda signed legislation ending UNIP's monopoly on power. In response to growing popular demand for multi-party democracy, and after lengthy, difficult negotiations between the Kaunda government and opposition groups, Zambia enacted a new constitution in August 1991. The constitution enlarged the National Assembly from 136 members to a maximum of 158 members, establishing an electoral commission, and allowed for more than one presidential candidate who no longer had to be members of UNIP. The constitution was amended again in 1996 to set new limits on the presidency (including a retroactive two term limit, and a requirement that both parents of a candidate be Zambian-born). The National Assembly is comprised of 150 directly elected members, up to 8 presidentially appointed members and a Speaker. Zambia is divided into nine provinces, each administered by an appointed governor of ministerial rank.

The Supreme Court is the highest court and the court of appeal; below it are high court, magistrate's court, and local courts.
 

Zambia is one of Sub-Saharan Africa's most highly urbanized countries. About one-half of the country's 10.1 million people are concentrated in a few urban zones strung along the major transportation corridors, while rural areas are underpopulated. Unemployment and underemployment are serious. Per capita annual incomes are currently at about one-half their levels at independence, and at $273, place the country among the world's poorer nations. Social indicators continue to decline, particularly in measurements of life expectancy at birth (37 years) and maternal and infant mortality (109 per 1,000 live births). The high population growth rate of 3.1% per annum makes it difficult for per capita income to increase. The country's rate of economic growth cannot support rapid population growth or the strain which HIV/AIDS related issues (i.e., rising medical costs, decline in worker population) places on government resources.

The present Chiluba government came to power after democratic multiparty elections in November 1991, committed to an economic recovery program. The government has been successful in some areas such as privatization of most of the parastatals, maintenance of positive real interest rates, the elimination of exchange controls and endorsement of free market principles. Populist rhetoric on the 2001 election cycle, however, raises concerns over a continued liberal economy particularly in regard to exchange controls. However, it has yet to effectively address issues such as reducing the size of the public sector, which still represents 44% of total formal employment, and improving Zambia’s social sector delivery systems.

Having privatized the giant parastatal mining company Zambia Consolidated Mining Company (ZCCM), donors resumed Balanace of Payment (BOP) support. The final transfer of ZCCM’s assets occurred on March 31, 2000. Althougth BOP payments are not the answers to Zambia's long term debt problems, it will in the short-term provide the Government some breathing room to implement further economic reforms. The GRZ has, however, been spending much of its foreign exchange reserves by trying to intervene in the exchange rate mechanism. Zambia qualified for HIPC debt relief in 2000, contingent upon the country meeting certain performance criteria, and this should offer a long-term solution to Zambia'a debt situation.

The Zambian economy has historically been based on the copper-mining industry. Output of copper has fallen, however, to a 1990’s low of 298,000 tonnes in 1998, continuing a decades-long decline in output due to lack of investment, and more recently, low copper prices and uncertainty over privatization. The combined effect of low output and low prices reduced the mining sector’s contribution to 10% of Zambia’s GDP and 75% of foreign exchange earnings in 1998, compared to 17% of GDP and almost 90% of foreign exchange earnings in 1994.

Lack of BOP support has meant the Zambian government has not had resources for capital investment, and has periodically had to issue bonds or otherwise expand the money supply to try to meet its spending and debt obligations. The GRZ continued these activities even after BOP support resumed. This has helped keep interest rates at levels that are too high for local business, fueled inflation, burdened the budget with domestic debt payments, while still falling short of meeting the public payroll and other needs, such as infrastructure rehabilitation. The government was forced to draw down foreign exchange reserves sharply in 1998 to meet foreign debt obligations, putting further pressure on the Kwacha and inflation. Inflation held at 32% in 2000; consequently, the Kwacha lost the same value against the Dollar over the same period.

The agriculture sector represented 15% GDP in 1998. Agriculture accounted for 71% of total employment (formal and informal) for 1998. Maize (corn) is the principal cash crop as well as the staple food. Other important crops include soybean, cotton, sugar, sunflower seeds, wheat, sorghum, millet, cassava, tobacco and various vegetable and fruit crops. Floriculture is another rapid growth sector, and agricultural non-traditional exports now rival the mining industry in foreign exchange receipts.. Zambia has the potential for significantly increasing its agricultural output; currently, only 20% of its arable land is cultivated. In the past, the agriculture sector suffered from low producer prices, difficulties in availability and distribution of credit and inputs, and the shortage of foreign exchange.

There are, however, positive macroeconomic signs, rooted in reforms implemented in the early and mid-1990’s. Zambia's floating exchange rate and open capital markets have provided useful discipline on the government, while at the same time allowing continued diversification of Zambia's export sector, growth in the tourist industry, procurement of inputs for growing businesses. The Copperbelt has experienced a significanmt revival as spinoff effects from the massive capital reinvestment are experienced.