Social Accounting Matrices and Sectoral Analysis: The Case of Agricultural Sector Investments in Zambia

A recent trend in development aid coordination has been the concept of sector-wide strategy. Ideally, this represents the government-driven effort to coordinate scarce resources allocated to a given sector in a most efficient way. The sector investments can be seen as a narrow approach to, since they are focusing on a sector, neglecting the development of other sectors. However, the linkages between institutions and sectors of production may lead to considerable effects on other economy, not always foreseen in the planning of a sector program. This paper discusses the implementation of Zambian agricultural sector investment program (ASIP). By using a Social Accounting Matrix (SAM), this study shows the negative income effects in Zambia as a consequence of poor program implementation in the period 1996-1997. Four different scenarios are chosen to illustrate the outcomes of different policy choices. In the case of ASIP the problems relating to implementation and management of the sector-wide approach have had serious effects on the rural household income.