Question

In 1991 the Zambian Government began economic reforms which included the transport sector. The reforms in the transport sector resulted in the abolishment of parastatal companies like United Bus Service of Zambia, Mulungushi Bus Service, Zambia Airways and Contract Haulage to mention just a few. Your assignment is as follows;

1. Discuss how the reforms have affected the transport sector overall, in the passenger and freight transport. Conduct literature review about the transport reforms from the UNIP government policy perspective to the MMD government transport reforms.
2. Explain how a regulated transport sector and deregulated transport sector operate, what role does government play to ensure that there is transportation equity in the provision of the service.
3. Explain how cartels can distort the market functioning in the transport sector (Demand and supply).
4. Give your general observations about these reforms and what would be your recommendation to improve the current transport sector performance.

Answer 1

When any country started to do the economic reforms it will try to calculate the social cost benefit of the system. In the above example we can see that in 1991 zambian government started economic reforms in which they definitly started the policy of privatisation and started the including of government role.In this condition the reforms are started from the transport sector. It abolishesh the parastatal organisation of public transport.

The transport sector reforms directly affects the common people. This will lead them eradicate the monopoly of some private organisation. the private transport services are trying to take more money from the people. The transport reforms resulted in the single public transport authority.and it decreases the corruption of this sector.

The regulated government transport sector is the best way to solve the problem of the traffic. When there is an regulation on the public transport it will lead to lessen the corruption as well as it will give the job security of the workers. for any accident or any damage the government us sole liable authority. But in the unregulated transport government faces so many problems like these organisation are not gives the taxes as per the rules and regulations.And it also clarify that they are behaving like the whole property. The demand of the government transport depends in the supply of the same. If the demand is higher the supply is also high because this will lead to more money for the government.

These reforms are the milestone in th history of zambia. because it changes the whole transport structure of the country and eradicate the cartels which are explointing the passenger. This is seriousaly a good step towards supplying the more facilities to the people of zambia. I think government reduces the fare. or give fare on the nominal basis so that it will attracts people to trav from government railways,buses etc. it will also leads to tackle the problem of traffic. I should reccomend this suggestion, government also have to give type of insurance for long term travel.