By George Kararach, Raphael O. Otieno
This quantity offers an available and updated account of the problems that the Zimbabwean economic system and its inhabitants skilled in the course of the situation which peaked in 2008. It information the pain and chaos that occurred the rustic with dramatic socio-economic results on development, macroeconomic balance, provider supply, livelihoods, and improvement. the amount seeks to supply a political economic climate research of management and fiscal administration in constructing economies in line with Zimbabwe's event. It examines the triggers of the hindrance, and the unfavorable effect on efficient sectors comparable to production and agriculture, social sectors comparable to schooling and health and wellbeing, and on monetary prone. the quantity should be of curiosity to scholars of coverage and monetary administration, in addition to to executive departments, critical banks in constructing nations, improvement organizations, donors, and NGOs.
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Additional resources for Economic Management in a Hyperinflationary Environment: The Political Economy of Zimbabwe, 1980-2008
This further widened the ﬁnancing gap, as much as it was outside the requirements of the structural adjustment programme. 36 million approved by the IMF in August 1999 was suspended after Zimbabwe managed to make only one draw-down and failed to meet the agreed performance targets. The country accumulated external payment arrears of US$109 million in 1999. Despite the efﬁciency in revenue collection that came with the overhauling of the tax administration (through the establishment of the Zimbabwe Revenue Authority), the ﬁnancing gap remained wide.
As 2008 approached, it was clear that ﬁrms were also making losses in real terms as proceeds from sales of manufactured goods were not adequate to purchase all the requisite inputs for continued production due to high inﬂation. Therefore, several manufacturing companies had to close down. The situation was worsened by the fact that production in the agriculture sector had been severely disrupted by the farm invasions undertaken by the war veterans. 1 . 4 T H E P U R S U I T O F IN E F F E C T I V E MACROECONOMIC POLICIES As indicated in several chapters in this volume, Zimbabwe’s crisis was worsened by the pursuit of ineffective policies and the imposition of unrealistic controls that had no positive impact on the economy but instead had very adverse impact on the population.
4 Millennium Economic Recovery Programme The government’s strategy for reversing the economic declines was centred on the Millennium Economic Recovery Programme (MERP). This programme, introduced in 2000, was aimed at stabilizing the economy by speeding up the land resettlement, reducing duties on all imported inputs, lowering production and capital costs, accelerating privatization to attract both local and foreign investment, rebuilding conﬁdence in the economy, and providing effective and efﬁcient infrastructure services.