Unfortunately it did not succeed, so many critics and Zimbabweans blame ESAP, and the International Financial Institutions (IFIs) that. An Introduction to ESAP: Zimbabwe By David Coltart. 31st January Danish Volunteer Service Development Workers Meeting. ESAP in Zimbabwe came as a result of the lame economy that the new government inherited and the inappropriate economic policies adopted at independence.

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Let me explain what I mean by looking at other legislation introduced since the elections: Following the deregulation of cotton Company of Zimbabwe Ltd, new players entered the market increasing competition much to the benefit of cotton farmers.

In the past 15 years, Zimbabwe has sought an alternative political-economic trajectory, breaking some of the shackles of the past; but it has also failed dramatically to address other challenges, with the consequence that the economy continues to languish, corruption has extended even further, growth has failed to take off and the benefits of redistributive policy remain to be realised. But what exactly is structural adjustment? Thus, no one believes that ESAP achieved its stated objectives.

The civil service wage and salary bill remained high, and the slow pace of parastatal reform contributed to government deficits, leading to excessive monetary growth, inflation, and high interest rates, crowding out the private sector from access to domestic savings. In Maythe IMF backed up its demands for further spending cuts by withholding balance of payments support credits. The latter also requires integrating retrenchment initiatives and strategic planning to ensure efficiency gains.

Co-ordination among the different relief schemes, which evidently had an overlapping target clientele, was poor.

AfricaFiles | Economic Structural Adjustment Programme (ESAP)’s Fables II

In answering this question I need to remind you of an article written by my colleague in the Financial Gazette on 5 th September An integral part of the programme is the cutting down of Government expenditure generally and the bloated civil service must be cut. Inafter two consecutive poor rainy seasons, the economy contracted by at least 7. Domestic business has to learn to compete in the world market and accordingly many measures designed to protect local industry must be removed so that local industry has to become efficient if it is to compete internationally.

The government admitted this risked higher unemployment and higher consumer prices in “the short term,” but Zimbabweans were promised a rising real standard of living, long-term employment expansion and a modern, growing, internationally-competitive economy.

At easp same time as parts of the Zimbabwean private sector displayed worrying signs of deindustrialization, and the public debt spiralled upwards, the standard of living of most Zimbabweans was also plummeting zimbwbwe levels not seen in 25 years. Whilst the prime goal of privatization is to unload enterprises the haemorrhage public money, it is no panacea for sustainable growth in the economy of African countries.


In the s, Zimbabwe had been a star performer in Africa in the provision of social services and in the reconstruction and development of its public infrastructure. But in a country where local production was highly integrated and often efficient, and where a large state provided a range of quality social services, the reforms represented more peril than promise for most. The shortage of foreign currency was largely a result of lack of investment.

After the Zanu government allowed white farming, industry and mining to continue, while using the state to improve services and invest heavily in health and education. It further explores the understanding of the variety of interconnections between macro-economic in light of structural adjustment and Shelter development Strategy.

The negative social and economic consequences of this shift were immediately and abundantly clear for ordinary Zimbabweans. Despite the high-flown rhetoric, the Mugabe government did not push for land reform or other redistributions in the s.

At the same time, the government’s stricter enforcement of a user fees system erected barriers to health care in the way of poorer social groups who were, typically, those most in need of health services. ESAP was designed to address the resulting structural crisis of ssap late s, so we can only evaluate its rationality by looking closely at the problems that it was designed to overcome.

Twitter David Coltart DavidColtart. The funds allotted to the SDF fell far short of matching the rate of government cuts in the social sectors of health and education. The tank is now depleted and the economy is spluttering in the form of maize shortages, higher inflation and zimbabqe stagnation. In the event, there was a lack of political transformation to accompany zimmbabwe economic reforms of the s.

I believe that it is important to grasp the fact that ESAP has not been introduced by Government because it has had a aimbabwe of ideological heart. Zimbabwe is experiencing a cumulative breakdown.

If a country is invaded and occupied by hostile forces, it might expect to lose its freedom and its voice. In addition, the emergency of seasonal price differential have also benefited those farmers with access to irrigation facilities or on farm storage and who can to wait to sell after harvest once prices have increased zimbabwwe.

The focus was on the formal sector as the engine of growth. Winter is regional director, Africa, for TechnoServe Inc. Application paperwork was cumbersome, especially for the less educated who also zimhabwe to have less access to information on the programs. This inevitably means a smaller Government, not just in terms of size but also attitude.


In other words, the programme must be an end in itself, namely the economic revitalisation of this country, not a means to an end, namely the political survival of ZANU-PF. Examining each of these possibilities allows us to come up with a nuanced interpretation of what actually happened in the early s. Like in Greece, they would I am sure have been roundly rejected. Material written specifically for AfricaFiles may be edited for length, clarity or inaccuracies. At a time when Zimbabwe has, on the face of it, committed itself to multi-party democracy and at a time when the whole Southern African region is stabilising the following aspects of the Budget are disturbing: However, the Bill, and especially the timing of its publication, has the potential to stall the entire Structural Adjustment Programme.

Origins of the Zimbabwe crisis

Critical fiscal reforms made slow and uncertain progress, keeping budget deficits high. On the revenue side, a decrease in the marginal tax rates for individuals and corporations lowered zmbabwe revenues.

Whatever one thinks of an IMF-imposed Structural Adjustment Programme, the fact of the matter is that unless it is implemented wholeheartedly and with the utmost vigour without any contradictions being allowed to remain in the system, it will fail. Hence, if nothing is done to cushion such negative effects, the participation of girls will continue to be severely affected.

In that process, it robbed Zimbabweans of the values of family structures as parents left their children in the hands eaap maids and guardians. Chipika and others, in their book Effects of Structural Adjustment in Southern Africa, note that although ESAP was accepted as a way of achieving sustained economic growth in many African countries, many economists have dismissed the effects of the structural adjustment and stabilisation programmes as disappointing. It is important to grasp this fact and it will help us to understand later on why the whole programme is endangered by the very fact that it is being implemented by people whose deeply-held political convictions are absolute anathema to the very spirit of Economic Structural Adjustment Programmes.