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1. The Committee notes the Government's report for the period ending in June 1996, and the discussion that took place in the Conference Committee at its June 1995 Session. It notes that, in its explanations to the Conference Committee and in its report, the Government states that it is endeavouring to promote job creation by establishing an environment conducive to local and foreign investment and that, since 1991, measures have therefore been taken to liberalize trade, deregulate markets, strengthen the financial sector and privatize state enterprises. The Government considers, however, that the effects of this structural adjustment programme will begin to show only in the coming years and that, for the time being, the programme's impact on employment and living standards is negative. The statistics provided by the Government show that employment in the formal sector declined during the period in question, owing largely to the reduction in public sector employment. The informal sector, on the other hand, has grown, having absorbed part of the increase in the active population, and now accounts for almost 85 per cent of total employment.

In this context, the Committee notes, from the World Bank's report on Zambia published in August 1996, the hardship that the structural adjustment programme has created for workers in the informal sector, leading to a deterioration in the potential of human resources. In view of the objective of full, productive and freely chosen employment described in Article 1 of the Convention, which the Government fully acknowledges, and of the need for an adequate information base, in order to determine and implement such measures as may be appropriate under national conditions (see under Article 2 in the report form adopted by the Governing Body), the Committee asks the Government to continue to provide available statistical data on the situation and trends in employment. The Committee would be grateful for information on any progress, in particular with ILO technical assistance, in establishing a labour market information system.

2. The Government refers in general terms to measures to soften the negative impact of structural adjustment on the most affected groups of the population and to assist and counsel retrenched workers. With reference to its previous observation, the Committee notes the absence of more precise information on the exact nature and scope of social measures taken to accompany the structural adjustment policy. The Government sets out briefly the objectives of the Investment Act, 1991 and the Privatization Act, 1992. The Committee notes that studies have been commissioned to assess the impact of privatization on employment, and asks the Government to provide the conclusions of these studies as soon as they are available. It trusts that the Government will keep in close contact with the ILO in order to conclude these studies and consider what measures are needed in the light of the objectives of the Convention.

3. The Committee expressed concern in its previous observation at the difficulties apparently encountered in devising and applying an employment policy within the meaning of the Convention. It trusts that, perhaps in cooperation with the competent units of the ILO, the Government will in its next report be able to provide the information required by the report form on the measures adopted within the framework of a coordinated economic and social policy in order to promote, as a major goal, a policy in keeping with Article 1 of the Convention. In addition, it asks the Government to provide detailed information on consultations held in practice with representatives of the persons affected concerning employment policies implemented, indicating the views of those consulted and the manner in which they were taken into account in accordance with Article 3. The Committee recalls, as did the Conference Committee, that representatives of workers in the rural and informal sectors should be associated in such consultations.