Zimbabwe Flashcards

1
Q

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

A

Rural-urban migration due to social and economic opportunities

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2
Q

Todaro (1971)

A

Argued people migrated for long-term aspirations

Would work in informal sector for meantime

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3
Q

Economy dominated by…

A

Industry and mining

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4
Q

Zimbabwe were seen to take on SAPs as…

A

‘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

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5
Q

SAPs caused

A

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

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6
Q

What were urban livelihoods like in Harare?

A

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

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7
Q

Independence

A

1980

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8
Q

SAPs imposed

A

1990s

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9
Q

Economic collapse led to…

A

Many to leave country –> due to food insecurity

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

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10
Q

What caused the economic collapse?

A

ESAPs
Extreme drought 1982/83
Unbudgeted military spending
Corruption

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11
Q

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

A

1988

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12
Q

4 stages of economic and social policy

Gibbon 1995

A
  1. Econ boom 1980-82
  2. Econ recessions 1982-86
  3. 1986-90 Econ growth
    4 1990s SAPs
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13
Q

When did Zimbabwe African National Union-Patriotic Front merge?

A

1987

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14
Q

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

A

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

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15
Q

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

A

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

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16
Q

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

A

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

17
Q

When was the Framework for economic reform (FER)?

A

1991

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

18
Q

How much did GDP fall by in 1992?

A

7.7%

19
Q

Policy mistakes and external shocks resulted in…

A

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

20
Q

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

A

War veterans compensation and pensions (3% GDP)

21
Q

Zimbabwe = good example of

A

devastating effects of carrying out policies that ignore market mechanism

22
Q

How much was inflation in 2003?

A

400%

23
Q

What were the policy mistakes?

A
  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!
24
Q

When was land reform introduced?

A

1980 - after liberation ended

25
Q

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

A

93%

26
Q

Main objectives of land reform (6)

A
  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
27
Q

1980 =

A

dualistic economy & inequitable

5000-6000 large-scale commercial farmers occupied 15.5 mil of land (46%)

28
Q

How many families have been resettled since 1980?

A

70 000

29
Q

Outcomes of Land reform:

A
  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
30
Q

What are the key themes?

A

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

31
Q

Potts (2005)

A

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

32
Q

Mswelanto (2013)

A

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

33
Q

Potts (2010)

A

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

34
Q

Riddell (1990)

A

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