debitum solvere - Solving Debt in Zambia

Zambia's biggest problem is a moral problem not an economic one. Solving Zambia's debt problem is easy, solving the moral problem not so much.

Solution 1

Anchor the kwacha in copper or gold reserves and create a sovereign derivative ( nkongole paper backed by reserves)...for more read Copper Currency reserve solution 

Solution 2

IMF deal so the yields on eurobonds come down. For example if the yields on Zambia's eurobond are 19% after an IMF deal the yields will come down to around 8-9%. Yields here being fancy English for interest paid on the bond.
This solution seems highly likely.

Solution 3

Cheat Yields

The real point of getting an IMF deal is to bring down the yields on the eurobonds and refinance the loans. But there is another way to do this. Firms that own Zambia's debt abroad would be willing to short the debt presuming a profit motive for them.

All these solutions can solve our debt problem but they will not solve our moral problem. The moment people actually realise they can cheat debt, greed and corruption will increase unfortunately.

Greed and corruption are not exactly economic problems, those are moral problems. So the next time someone asks what economists are doing to fix the economy consider this. Economists can solve economic problems, they can't solve moral problems that run down the hearts of human beings.