This report traces the roots of this poor performance to several
policy issues: poor predictability of macroeconomic policy and
economic governance has created an unfavorable climate for private
investment and trade; a tariff structure that dampens export
profitability; industrial policies - indigenization policy in
particular - that undermine investor confidence and inhibits
private investment; and finally, competition-limiting policies
toward services that limit connectivity of Zimbabweans and raise
trade costs. The good news arising from the study is that the
remedies for these policy shortcomings lie in Zimbabwean hands. If
the government were to adopt reforms that reconfigure economy-wide
incentives and trade and industrial policies, it could promote
sustained growth, economic diversification and empowerment of poor
people.
General
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