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Beyond the Enclave

Towards a Pro-Poor and Inclusive Development Strategy for Zimbabwe

Godfrey Kanyenze, Timothy Kondo

Publication Year: 2011

Beyond the Enclave sets out to unravel the contradiction of a country, Zimbabwe, where a rich, diverse resource base co-exists with endemic poverty. One reason lies in the colonial economy, which was predicated on an ideology of white supremacy, creating an enclave formal economy employing one-fifth of the labour force. Yet over three decades after independence, the non-formal segment has become even more entrenched. This book assesses Zimbabweís economy through three main phases: 1980-90 when a strong social policy framework proved difficult to sustain due to erratic growth, and 1991-96, when ëstructural adjustmentí demanded a market-driven approach to development. The third phase is characterized by crisis-management leading to policy inconsistencies and reversals. Not surprisingly, such incoherence saw the economy descend into hyperinflation and paralysis in 2007-2008, leading to the signing of the Global Political Agreement in September 2008. In the absence of formal dollarization, economic recovery after the adoption of the multi-currency regime has remained fragile, leaving an estimated 70 per cent of the population outside the banking system. This has further entrenched uneven (enclave) growth as the economy remains locked in a low-income poverty trap. There is a need to facilitate transition towards formality to promote decent jobs. Furthermore, a strategic, developmental role for the state in the economy is now widely recognized as vital for development. Beyond the Enclave argues for a new approach to development in Zimbabwe based on pro-poor and inclusive strategies, which will contribute to the well-being of all of its citizens and wise stewardship of its resources. It offers suggestions on policy formulation, implementation, monitoring and evaluation in all sectors, designed to promote inclusive growth and humane development.

Published by: African Books Collective

Title page

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Copyright page

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Contents

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pp. iii-v

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Foreword

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pp. vi-viii

The Zimbabwe Congress of Trade Unions (ZCTU) published its groundbreaking analysis of the Economic Structural Adjustment Programme (ESAP), Beyond ESAP: Framework for a Long-term Development Strategy for Zimbabwe, in 1996. The book marked a new era for the labour movement, moving beyond simply criticizing government policies to...

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Acknowledgements

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pp. ix-

During the course of the production of this book, several people and organizations played a part from its genesis to completion. Firstly, we would like to thank the General Council of the ZCTU, which made the decision to update the Beyond ESAP book and provided the impetus for the project. The General Council also engaged the writers of...

Acronyms

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pp. x-xii

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Chapter 1 - Conceptual Framework and Overview

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pp. 1-29

Zimbabwe attained independence in 1980, much later than most other African countries, and it was hoped that the country would learn from their experiences. It was reported that, on the eve of independence, the late President of Mozambique, Samora Machel, advised his ally and colleague Robert Mugabe to avoid being driven by revolutionary zeal and learn from...

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Chapter 2 - Towards a Macroeconomic Framework for Pro-poor and Inclusive Growth

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pp. 30-74

Conventional macroeconomic policy frameworks have often confused means with ends, with macroeconomic stability (typified by single-digit inflation, low budget deficits, and a sustainable debt position) being seen as an end in itself rather than as an instrument for poverty reduction and the attainment of human development. Quite often, quantitative macroeconomic...

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Chapter 3 - Land, Agriculture and Rural Development

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pp. 75-128

In recognition of its potential role in unlocking sustainable human development, the World Bank’s 2008 World Development Report focused on ‘Agriculture for Development’. The Report notes that agriculture can be a vital development instrument for achieving the first Millennium Development Goal of halving poverty by 2015. This is particularly so because three out of every four people in developing countries live in rural areas and...

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Chapter 4 - Manufacturing

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pp. 129-159

The manufacturing sector is the central driver of growth in many countries. It assumes a key role in the growth process because of its ability to generate spill-overs, technical progress, economies of scale, induced productivity growth in the sector, and to raise the overall productivity of the economy (Felipe et al., 2010). Kaldor (1967) postulated that manufacturing is the engine of growth in the sense that the faster the rate...

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Chapter 5 - Mining

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pp. 160-208

The years 1980 to 1990 could be viewed as a two-phase period, the first from 1980 to 1985, when the policies in place were a carry-over from those implemented by the pre-independence government. This period was characterized by declining volumes of most of the minerals produced. This was followed by the years from 1985 to 1990, when policy amendments to reverse declining production volumes were undertaken, with some positive...

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Chapter 6 - Gender

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pp. 209-249

Over the years, policies implemented by the government have to a large extent failed to respond sufficiently to the needs and responsibilities of women, hence the persistence of gender inequality and inequity. Many of the policy responses have been poorly implemented for various reasons, which include capacity deficits, inadequate budget allocations and poor infrastructure...

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Chapter 7 - The Labour Market

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pp. 250-295

In economic terms, labour is a measure of the work done by human beings, and labour markets occur wherever workers supply labour services (the supply side) in return for conditions of service provided by those who demand such services (employers).1 Labour markets function through the interaction of workers and employers, resulting in a pattern of wages, employment...

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Chapter 8 - Education and Training

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pp. 296-347

This chapter looks at education and training provision in Zimbabwe in historical perspective. It makes a distinction between education and training, even though in practice these are a continuum. At the level of education, the chapter explores the extent to which it meets the international norms and standards of availability, accessibility, acceptability and adaptability...

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Chapter 9 - Social Services: Housing, Health and Social Protection

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pp. 348-395

This chapter looks at three aspects of social services: housing, health, and social protection. In each case, it follows through the policy and other pertinent developments since independence, and then proposes a way forward for each. The overriding issue is that the three are so closely interwoven that without any one of them it will be difficult to offer comprehensive social services...

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Chapter 10 - Science and Technology Development

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pp. 396-443

Although African governments recognize the importance of science and technology (S&T) in development and in uplifting standards of living, they have not made much progress in harnessing it for the benefit of their people. Investments in S&T have a long gestation period and therefore require foresight, serious commit ment, and leadership with vision. There is a need to strike a balance between current consumption and the long-term productivity...

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Chapter 11 - Trade and Trade Policy

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pp. 444-472

This chapter explores trade and trade policy in Zimbabwe since independence in 1980 and is structured into six parts. The first provides an introduction and brief review of literature on trade policy and development. The second focuses on the first decade of independence (1980–1990) while the third assesses trade measures and performance during the ESAP period (1991–1996). A review of trade policy and performance...

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Chapter 12 - Finance for Inclusive Growth

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pp. 473-509

A lot of empirical and theoretical literature on the finance–growth nexus shows that a well-developed financial sector plays a causal and central role in promoting socio-economic development. As long ago as 1873, Walter Bagehot argued that the financial system played a critical role in igniting industrialization in England by facilitating the mobilization of capital for growth. Schumpeter (1934) noted that banks actively spur innovation and future...

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Chapter 13 - Synthesis: Beyond the Enclave

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pp. 510-529

Zimbabwe achieved its independence relatively later than other African countries, it was hoped that the country would draw lessons from others’ experiences, build on the strengths and avoid the same mistakes; that it would break from its past colonial experiences, take advantage of good practices from elsewhere, and build a country that would become a beacon of Africa. As the analysis in this book has shown, Zimbabwe...

Back cover

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E-ISBN-13: 9781779221605
Print-ISBN-13: 9781779221513

Page Count: 546
Publication Year: 2011