1991-96 market-driven approach
97 – present crisis management
The Zimbabwe Congress of Trade Unions (ZCTU) last week Friday launched a book that assesses the economic situation in the country in three main phases since independence.
The book, which is entitled Beyond the Enclave, was officially launched by ZCTU first vice president Lucia Matibenga at a local hotel in Mutare.
It sets out to unravel the contradiction that a rich diverse resource base exists alongside endemic poverty. The book also argues that in as much as the endemic poverty can not be distanced from the colonial economy, it is disturbing to note that three decades after independence, the non-formal segment has become even more entrenched.
Beyond the Enclave assesses Zimbabwe’s 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 “structural adjustment” 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 descent into hyperinflation and paralysis in 2007-2008, leading to the signing of the Global Political Agreement in September 2008.
It states that, “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 (enclave) growth as the economy remains locked in a low income poverty trap”.
The book further suggests that 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 human development.
Post published in: Arts