Zimbabwe

Question 1

In the 1960s & 70s, what was encouraged?

Answer 1

Rural-urban migration due to social and economic opportunities

Question 2

Todaro (1971)

Answer 2

Argued people migrated for long-term aspirations

Would work in informal sector for meantime

Question 3

Economy dominated by…

Answer 3

Industry and mining

Question 4

Zimbabwe were seen to take on SAPs as…

Answer 4

‘Voluntary’ - BUT argued there was pressure from IFIs e.g. Britain with held funds if country was economically ‘illiberal’
Political elites persuaded - economic prosperity & luxury goods

Question 5

SAPs caused

Answer 5

Loss of subsidies & loss of Minimum wage –> urban poverty
Increased unemployment
Net-migration out of cities (urban-rural)
Decline in health
Marginalisation of women

Question 6

What were urban livelihoods like in Harare?

Answer 6

NO LONGER SITE OF ECON. OPPORTUNITY
Worsened by migration
Cost of living = higher
Standard of living higher - due to infra, education, access to water & housing quality

Question 7

Independence

Answer 7

1980

Question 8

SAPs imposed

Answer 8

1990s

Question 9

Economic collapse led to…

Answer 9

Many to leave country –> due to food insecurity

In Harare - reconfigured rural-urban relations - urban more reliant on rural –> food transfers lessened

Question 10

What caused the economic collapse?

Answer 10

ESAPs
Extreme drought 1982/83
Unbudgeted military spending
Corruption

Question 11

What year did Zimbabwe plunge into debt and ask IMF for a loan?

Answer 11

1988

Question 12

4 stages of economic and social policy

Gibbon 1995

Answer 12

1. Econ boom 1980-82
2. Econ recessions 1982-86
3. 1986-90 Econ growth
   4 1990s SAPs

Question 13

When did Zimbabwe African National Union-Patriotic Front merge?

Answer 13

1987

Question 14

What did the Unilateral Declaration of Independence (UDI) do?

Answer 14

Strong role of state - 1965-79
Invested heavily in domestic industry e.g. clothing
Classic modernisation techs - didn’t open to Global N

Question 15

What happened in the first decade of independence? (1980-91)

Answer 15

Nationalised nothing
Money into health & women’s health
Good education
Giant econ output

Question 16

When was the 5 year plan and what did it do?

Answer 16

1985-90
Strong role of state
Continued UDI govts economic constraints

Question 17

When was the Framework for economic reform (FER)?

Answer 17

1991

Reduced budgets, opened markets, phased out exports & promo schemes, price controls off import goods

Question 18

How much did GDP fall by in 1992?

Answer 18

7.7%

Question 19

Policy mistakes and external shocks resulted in…

Answer 19

public debt accumulation –> budget deficits –> NATIONAL CRISIS 1997 - Zim dollar plummeted –> Food price increase –> strikes

Question 20

What was announced just before 2nd SAP credit from WB?

Answer 20

War veterans compensation and pensions (3% GDP)

Question 21

Zimbabwe = good example of

Answer 21

devastating effects of carrying out policies that ignore market mechanism

Question 22

How much was inflation in 2003?

Answer 22

400%

Question 23

What were the policy mistakes?

Answer 23

1. Real treasury bill - macroeconomic instability –> contributed to balloon interest rate payments on govts debt
2. Long term bonds - interest dropped -30%
3. Controls on basic commodities = bad strategy
4. Didn’t relinquish fuel price –> losses
5. Paid no attention to policy restrictions - let debt get out of hand!

Question 24

When was land reform introduced?

Answer 24

1980 - after liberation ended

Question 25

How much resettlement did model A (Uniform family based holdings) account for?

Answer 25

93%

Question 26

Main objectives of land reform (6)

Answer 26

1. Alleviate population pressure in CA 2. Improve productivity 3. Improve living in poorest sector 4. Redistribution --> opportunities for landless 5. Improve infra of economic production 6. National Stability

Question 27

1980 =

Answer 27

dualistic economy & inequitable | 5000-6000 large-scale commercial farmers occupied 15.5 mil of land (46%)

Question 28

How many families have been resettled since 1980?

Answer 28

70 000

Question 29

Outcomes of Land reform:

Answer 29

1. Higher incomes & more equally distributed incomes 2. Values of livestock, crop production and food expenditure = higher & more equal 3. Rely less on remittances 4. Child nutrition suffered 5. Reduced income variability

Question 30

What are the key themes?

Answer 30

SAPS - Land reform - Urban livelihoods - Migration - Circular migration - Poverty

Question 31

Potts (2005)

Answer 31

Urban povt in Harare - accelerated since 1990s No longer site of econ opportunity Negative change in livelihoods

Question 32

Mswelanto (2013)

Answer 32

ESAPs - shattering infant econ, also due to drought 82/83 --> inflation & military spending & corruption

Question 33

Potts (2010)

Answer 33

Talks about Harare - fall in security Circular migration - push-pull = useful argument 3 broad changes: growth 60s/70s, oil crisis - reversed trend --> stagnation (SAPs)

Question 34

Riddell (1990)

Answer 34

WB argued that slow down of econ due to state involvement --> solution = liberalisation Riddell argues against - saying worldwide decline in demand - global recession - import restrictions