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Data response (1)


Read the article The nation will not fall back into debt and then answer the questions below.


Question 1

The article refers to the government imposing a windfall tax on mining companies in Zambia. Explain the concept of a windfall tax.

Question 2

Identify the reasons why the Zambian government imposed a windfall tax on the mining companies.

Question 3

Explain, using evidence from the article, why the Zambian government does not consider its debt situation too problematic.

Question 4

Examine the conditions multilateral agencies, such as the IMF or World Bank, could require the Zambian government to adopt if they were approached for a concessionary loan, and the rationale for doing so.