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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 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 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.
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