Public Sector Reform and the Introduction of Neoliberal Capitalism in African Socialist States: The Case of Zambia

Abstract

Public sector reform (PSR) is believed to improve the performance of the public sector in particular and the economy in general by introducing market competition in service delivery. However, this paper shows that PSR uses a three-stage process to introduce neoliberal capitalism in African socialist states. The first stage dismantles the socialist state through strategies such as downsizing, decentralization, and privatization. The second stage introduces neoliberal capitalism in the former socialist state by removing government controls and allowing private sector actors to participate in economic activities. The third stage reconfigures the former socialist state into an agent of neoliberal capitalism. Ultimately, ordinary citizens are exploited and impoverished while private investors accumulate capital. JEL Classification: D73, P16, P33