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.