Why has Zimbabwes economic performance been so poor? Discuss.

Do you think Zimbabwes economic performance would have been better under a different system of government? Which one? Explain your reasoning.

Discuss the steps needed to be taken now to improve the economic outlook for Zimbabwe?

In 1980, the southern African state of Zimbabwe gained independence from its colonial master, Great Britain. modern agricultural Speaking at the time, the late Tanzanian President, Julius practices and had never Nyerere, described Zimbabwe as "the jewel of Africa." It farmed at all. In the was a country that boasted a strong economy, abundant wake of the land reform natural resources, and a vibrant agricultural sector. As program, agricultural part of the independence process, the British bequeathed productivity slumped Zimbabwe a number of democratic political institutions. and the country is now Zimbabwe's birth as an independent nation was a difa net importer of food. ficult one. In 1965, the minority white rulers of what was then known as Rhodesia unilaterally declared indepenthe country's growth blacks were excluded from power. The British govern- ness in Zimbabwe have at least 51 percent local ment wanted majority rule, stated that the declaration of ownership. In practice, this often meant high-ranking independence was an illegal rebellion, and imposed sane- ZANU-PF party members. After the act was passed, a tions on Rhodesia. Other nations that followed suit in- number of foreign corporations doing business in the cluded the United States. An armed conflict ensued, with country pulled out. two guerrilla movements waging war against Rhodesia's The country's mining sector remains potentially lucrawhite government. One of those guerrilla movements, the tive, with large platinum and diamond deposits mined by Zimbabwe African National Union (ZANU) was headed private enterprises, but almost all of the licensing reveby Robert Mugabe, who aligned himself and his move- nues due to the state have reportedly disappeared into the ment with the Maoist version of communism. A combina- hands of army officers and ZANU-PF politicians. Taxes tion of international sanctions and guerrilla activity and tariffs are high for private enterprises, which discoureventually forced the white minority rulers of Rhodesia to ages private business formation, while state-owned enterend their rebellion. In 1979, Rhodesia reverted to British prises are strongly subsidized. Tourism, once a big colonial status. revenue carner, has declined as Zimbabwe's wildlife has The following year, Zimbabwe gained legal indepen- been decimated by poaching and deforestation. As ecodence. Robert Mugabe was elected as the country's first nomic activity slumped, the country's formal unemployprime minister. Thirty-seven years later, Mugabe was still ment rate reached a staggering 80 percent. in power, now as President. His ZANU-PF party had won To complicate matters, Zimbabwe was devastated by every election since independence. Once a largely cere- the AIDS epidemic, with HIV infection rates hitting a monial position, Mugabe had systematically consolidated high of 40 percent of the population in 1998. Due to power in the Presidency and restricted his political oppo- AIDS and other public health problems, life expectancy nents. He was re-elected as President in 2013 in a general fell to just 43.1 years in 2003, down from 61.6 years in electionthat,likemanyintheMugabeera,waswidely1986.By2014,withHIVprevalencedownto15percent, seen as rigged. The country has also been beset by en- life expectancy had risen back to 54 years. demic corruption. Corruption watchdog Transparency With tax revenues collapsing, Mugabe funded governInternational recently ranked Zimbabwe as one of the ment programs by printing money. Inflation quickly spimost corrupt nations in the world. raled out of control, reaching 231,000,000 percent in Zimbabwe's economic performance in recent years 2008 and requiring the Central Bank to introduce a ranks among the worst in the world. Although the econ- 100 trillion Zimbabwe dollar note! In April 2009, the omy maintained a positive economic growth rate through Zimbabwe dollar was suspended (at the time the trillion the 1980s and 1990s, it has deteriorated rapidly since dollar note was worth around \$0.40 USD). Zimbabwe 2000. Between 1999 and 2009, Zimbabwe saw the lowest allowed trade to be conducted using other currencies, economic growth rate ever recorded, with an annual particularly the U.S. dollar, the South Africa Rand, the decline of 6.1 percent in GDP. euro, and the British pound. The decline occurred after Mugabe launched a "fast- Despite the country's economic implosion, the World track" land reform program that encouraged seizure by the Bank still believes that Zimbabwe has enormous potential state without compensation of land owned by white farm- for sustained cconomic growth given its generous endowers. At the time, some 4,000 white farmers were the back- ment of natural resources, its existing stock of public bone of the country's strong agricultural sector. The land infrastructure, and comparatively skilled human resources. was given to members of the ZANU-PF party and other Attaining that potential will require a change in leadersupporters of Mugabe, who lacked experience with ship and policies. 628 Part 7 Cases Mugabe showed no signs of giving up the reins of Chifera, What Happened to Zimbabwe, Once Known as the power. In February 2017, he held a lavish 93rd birthday Jewel of Africa?* VoaZimbabwe, April 17, 2015; "The Real party for himself and stated that he wanted to stand for Balancing Rocks on Every Zimbabwe Dollar," Slake, January 23 , another five-year term as president in 2018. However, much 2017; "Diamonds in the Rough," Human Rights Watch Report, to the surprise of many observers, in November 2017, June 26, 2009; "Zimbabwe," The World Bank, http://www. Mugabe was forced to resign from office after his own worldbank.org/en/country/zimbabwe/orerniew. party started impeachment proceedings against him. He was quickly replaced by his former vice president, Emmerson Mnangagwa, whom Mugabe had fired on November 6 in an action that precipitated the impeachCase Discussion Questions ment hearings. Mnangagwa has stated that he will get rid 1. Why has Zimbabwe's economic performance been of Mugabe's more ruinous policies in an effort to improve so poor? Zimbabwe's battered economy. Mugabe himself passed 2. Do you think Zimbabwe's economic performance would have been better under a different system of struggles with his legacy. government? Which one? Explain your reasoning. 3. What steps need to be taken now to improve the Sources economic outlook for Zimbabwe? "Will Emmerson Mnangagwa Be Better than Robert Mugabe?" The Economist, November 30, 2017; "How Robert Mugabe Ruined Zimbabwe," The Ecanomist, February 26, 2017; Irwin