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Zimbabwe and the Economic Structural Adjustment Program

            After Zimbabwe gained independence on 18 April 1980 the government was involved in post war reconstruction redressing the imbalances which the white colonial regime had instituted and responding to the needs of the population. The country was in great need of the provision of health, education, recreation and employment opportunities.
             In October 1990 the Zimbabwe government started to implement a five year economic structural adjustment programme (ESAP) as a response to the economic crisis which had been affecting the country since the attaining of independence in 1980.The programme was developed or designed by the world bank to help developing countries.
             The measures introduced were;.
             -removal of price controls.
             -removal of wage controls.
             -reduction of government expenditure.
             -a 40% devaluation of the Zimbabwe dollar.
             -removal of subsidies on basic consumer goods.
             -liberalization of foreign currency allocation system.
             -removal of protection of non-productive import substituting industries and increased profit remittance abroad.
             -a radical restructuring of the various parastatals and other public enterprises.
             Between 1991 and 1992 the whole of Southern Africa experienced the worst drought which resulted in large scale crop failure, food shortages and in extreme cases famine. This drought impacted a lot on the government's economic structural adjustment programme (ESAP) .The severe drought strongly affected the agricultural output which is the main source of Zimbabwe's foreign currency revenue. When the government implemented ESAP they had not foreseen that there would be a worst drought which was going to adversely affect the programme, hence the drought contributed to the failure of ESAP. Since 1991 the Zimbabwe dollar was devalued repeatedly. The general liberalization of the economy culminated in the lifting of protectionism. The removal of price controls and wage controls had an effect on the country's economy as this opened up the domestic market to cheaper imports and resulted in the closing and downsizing of many of the country's big industries.


Essays Related to Zimbabwe and the Economic Structural Adjustment Program

1. Agrarian Reform in Zimbabwe

This is vital to the success of any developmental program. ... The Zimbabwe government was required to match the UK's funding to make up the full costs of the program. ... It would also promote economic growth with the redistribution of land with more intensive small farmer production and provide national food security. ... Under this Program the poor and landless were to be given priority in accessing. The small-scale commercial farms sector would be involved later in the program. ...

  • Word Count: 2754
  • Approx Pages: 11
  • Has Bibliography
  • Grade Level: Undergraduate

2. Imf And World Bank In Africa

Structural adjustment programs are a failure. ... The continent is only being placed in deeper debt as the structural adjustment programs neglect the ability for funds to be placed in greater areas of need. ... Unlike many of the countries that undertake IMF adjustment programs, Zimbabwe did not institute structural adjustment in response to a crisis. Rather, after several years of economic recession, Zimbabwe turned to the IMF and World Bank in an effort to "jump start economic growth"(Isbister 24). ... In Zimbabwe, economic crisis actually followed rather than preceded the implementation ...

  • Word Count: 2746
  • Approx Pages: 11
  • Grade Level: Undergraduate

3. The Effects of Grants and Donor Aid

Developmental aid has also sped up structural transformation of many developing countries who have been forced by the donor countries to adopt some policy reforms aimed at improving standards and economic independence. ... Another example can be noted in Zimbabwe where donors have withdrawn their financial aid and imposed sanctions on the country due to undemocratic tendencies. ... Thirwal (1989) has argued that development aid is given with hidden political and economic motives by the donors. ... The issue of structural adjustment which was forced on many African countries by the IMF is anoth...

  • Word Count: 1491
  • Approx Pages: 6
  • Has Bibliography
  • Grade Level: Graduate

4. The IMF and the World Bank

This paper will argue that the programs imposed by the two largest financial institutions, the IMF and the World Bank, have only increased negative economic, political, and social outcomes for developing countries. ... Like the IMF, the World Bank was also formed after WWII and it concentrated primarily on reconstruction and development; in 1960, the Bank moved further toward economic development programs due to the creation of the International Development Association (IDA) (Peet 2003, p.7). ... It is thus seen as following the country to invest in longer-term policy adjustment by assuring ...

  • Word Count: 3351
  • Approx Pages: 13
  • Has Bibliography
  • Grade Level: Undergraduate

5. Africa and the Case for Foreign Aid

USAID aids African nations from Angola to Zimbabwe. The 2015 budget proposal for foreign aid is on the order of 20.1 billion with 9.7 billion going toward specific USAID programs (USAID). ... The domestic economic situation is the priority before that of aid efforts. ... Success stories such as India and China do not follow an aid program, but instead allow for the free market (John, Storr 131). Sachs seems to be in denial of the failures and lack of results in aid efforts and blames the "twenty years of failed structural adjustment policies" by the IMF for the lack of development i...

  • Word Count: 1916
  • Approx Pages: 8
  • Has Bibliography
  • Grade Level: Undergraduate

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