Beyond the Enclave

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Description

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.

Informations

• Publié par: Weaver Press
• Date de parution: 26 juillet 2011
• Nombre de lectures: 0
• EAN13: 9781779221605
• Langue: English
• Poids de l'ouvrage: 8 Mo

Extrait

Beyond the Enclave Towards a Pro-Poor and Inclusive Development Strategy for Zimbabwe

Edited by Godfrey Kanyenze, Timothy Kondo, Prosper Chitambara and Jos Martens

Published in 2011 by Weaver Press, Box A1922, Avondale, Harare in association with ANSA (Alternatives to Neo-liberalism in Southern Africa) LEDRIZ (Labour & Economic Development Research Institute, Zimbabwe) and the ZCTU (Zimbabwe Congress of Trade Unions)

© LEDRIZ, 2011

ISBN: 978-1-77922-151-3

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means – electronic, mechanical, photocopying, recording, or otherwise – without the express written permission of the publisher.

Typeset by TextPertise, Harare Cover design: Danes Design, Harare Cover photographs: Mike Danes, Danes Design Printed by Précigraph Ltd., Mauritius

Foreword Acknowledgements

Contents

1 Conceptual Framework and Overview 1.1 Introduction 1.2 The Legacy of Enclavity and Dualism 1.3 Rethinking Development: The International Context 1.4 The International Aid Architecture 1.5 The Underlying Values and Principles of the Alternative Framework 1.6 Methodology of the Analysis and Overall Structure References

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1 4 8 19 23 26 28

2 Towards a Macroeconomic Framework for Pro-poor and Inclusive Growth 2.1 Introduction 30 2.2 Evolution in Macroeconomic Thinking: From the Washington Consensus to Pro-poor and Inclusive Growth 31 2.3 Post-Independence Performance of the Economy 35 2.4 Recommendations and the Way Forward 59 2.5 Conclusion 71 References 72

3 Land, Agriculture and Rural Development 3.1 Introduction 3.2 The Inherited Dual and Enclave Structure of Agriculture 3.3 Land, Agriculture and Rural Development in the 1980s 3.4 Land, Agriculture and Rural Development, 1991–1996 3.5 The Land Issue during the Crisis Period, 1997–2000 3.6 Land, Agriculture and Rural Development, 2000–2008 3.7 Land, Agriculture and Rural Development, 2009–2010 3.8 Strategies for Agricultural Recovery and Rural Development References Appendix to Chapter 3

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75 76 79 85 90 93 108 109 120 125

4 Manufacturing 4.1 Introduction 4.2 The First Decade of Independence, 1980–1990 4.3 The ESAP Period, 1991–1996 4.4 The Crisis Period, 1997–2008 4.5 The Transitional Period, 2009–2010 4.6 Recommendations and the Way Forward References

5 Mining 5.1 The First Decade of Independence, 1980–1990 5.2 The ESAP Period, 1991–1996 5.3 The Crisis Period, 1997–2008 5.4 The Way Forward

6 Gender 6.1 Introduction 6.2 Background to Gender Inequality in Zimbabwe 6.3 The Impact of Policies on Gender 6.4 Initiatives to Address Gender Inequality and Inequity 6.5 Alternative Pro-Gender Development/Equity Policies 6.6 Conclusion References

7 The Labour Market 7.1 Introduction 7.2 The Role of the Labour Market in Poverty Reduction 7.3 Labour-Market Policy in Zimbabwe, 1980–2008 7.4 Labour-Market Performance and Outcomes, 1980–2008 7.5 The Transitional Period, 2009–2010 7.6 Regulated Flexibility and the Global Decent Work Agenda 7.7 Strategic Objectives and Recovery Policies References

8 Education and Training 8.1 Introduction 8.2 The Concepts and Roles of Education and Training 8.3 Education and Training Provision in Zimbabwe, 1980–2009 8.4 Higher and Tertiary Education (Vocational and University) 8.5 The Brain Drain 8.6 International Experiences and Trends in Education and Training 8.7 Sustainable Recovery Policies and Policy Measures References

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129 130 133 136 147 150 156

160 165 176 198

209 211 213 230 238 246 248

250 251 255 272 281 284 288 292

296 296 300 319 327 332 337 344

9 Social Services: Housing, Health and Social Protection 9.1 Housing 9.2 Health 9.3 Social Protection References

10 Science and Technology Development 10.1 Introduction 10.2 Science, Technology and Development 10.3 Development of Science and Technology in Zimbabwe 10.4 Regional Blocs and Science and Technology Development 10.5 The Way Forward References

11 Trade and Trade Policy 11.1 Introduction: The Conceptual Framework 11.2 The First Decade of Independence, 1980–1990 11.3 The Period of ESAP, 1991–1995 11.4 The Crisis Period, 1997–2008 11.5 The Transitional Period, 2009–2010 11.6 Conclusion and the Way Forward References

12 Finance for Inclusive Growth 12.1 Introduction 12.2 The First Decade of Independence, 1980–1990 12.3 The ESAP Period, 1991–1996 12.4 The Crisis Period, 1997–2008 12.5 The Transitional Period, 2009–2010 12.6 Strategies for Financial Sector Recovery and Inclusive Growth 12.7 Conclusion References

13 Synthesis: Beyond the Enclave 13.1 Summary of Zimbabwe’s Economic Experience 13.2 Lessons from Current International Development Thinking 13.3 Strategic Objectives and Thrusts, and Recovery and SHD policies References

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348 365 377 393

396 399 403 431 435 442

444 447 452 458 461 467 470

473 474 476 483 497 499 506 506

510 510 516 524 530

Foreword

The Zimbabwe Congress of Trade Unions (ZCTU) published its groundbreaking analysis of the Economic Structural Adjustment Programme (ESAP),Beyond ESAP: Framework for a Long-term Development Strategy for Zimbabwe, in 1996. The book marked a new era for the labour movement, moving beyond simply criticizing government policies to offering detailed policy alternatives. It also marked an attempt by the labour movement to put its positions together into a cogent policy framework covering the macro and sectoral levels. Beyond ESAPprovided a reference point for the policies of the therefore ZCTU, and was used extensively by policy-makers, academics, students and other interested parties. The government team working on the Zimbabwe Programme for Economic and Social Transformation (ZIMPREST), 1996–2000, also made extensive use of it. Furthermore, the far-reaching recommendations of theBeyond ESAPthe proposal to establish a national institutional study, framework for stakeholder participation in national decision-making processes, the Zimbabwe Economic Development Council, culminated in the formation of the National Economic Consultative Forum in July 1997 and the Tripartite Negotiating Forum in September 1998. The Zimbabwean economy of 1996 is barely recognizable now, having gone through eleven years of crisis (1997–2008) and far-reaching changes. The economy analysed inBeyond ESAPthe one existing now are structurally and different. For instance, a year before the onset of the crisis (1996), Zimbabwe’s GDP of US$8.6 billion was the second largest of the fifteen-country SADC, behind that of South Africa at US$143.7 billion. At the height of the economic paralysis in 2008, Zimbabwe’s GDP reached only US$4.8 billion, falling to the rank of eleventh in SADC, a position that was maintained in 2009. Instructively, while South Africa’s GDP was almost 17 times that of Zimbabwe in 1996, it was almost 58 times larger by 2008. Looking at the periods 1980–1989 and 1990–1999, Zimbabwe’s real GDP growth at 5.2 per cent and 2.6 per cent in these periods was higher than the average for Sub-Saharan Africa at 2.2 per cent and 2 per cent. In the new millennium (2000–2006), the average GDP of Sub-Saharan Africa increased by 4.6 per cent while Zimbabwe’s decreased by 5.8 per cent. Zimbabwe’s persistent decline since the late 1990s does not, therefore, follow the general trend. Most African countries took advantage of the commodity price boom of 2002–2007 to improve their performances. Such has been Zimbabwe’s fall in status that a country that used to be in the medium human-development category was at the bottom of the 169 countries reported on in the 2010 globalHuman vi

Foreword

Development Report. As the economy collapsed, Zimbabwe’s human resources went into the diaspora. Today almost a third of the population is estimated to be living abroad. It is against this background of wrenching structural changes that the General Council of the ZCTU requested the Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ), its research think-tank, to update theBeyond ESAPstudy. ZCTU leaders felt the need to ascertain the extent of economic regression and to establish baselines for launching the new, pro-poor, inclusive and humane recovery and development policies so urgently needed. This directive to updateBeyond ESAP book took advantage of the fact that the Alternatives to Neo-liberalism in Southern Africa (ANSA) project, a regional initiative of the ZCTU and the Southern African Trade Union Co-ordination Council, is promoting country-level studies in the region. In delivering this mandate, LEDRIZ and ANSA commissioned fourteen papers during the second half of 2008, which provided the basis for the chapters of this book. The research team was guided by two policy editors drawn from the Board of LEDRIZ, Dr Elizabeth Marunda and Cde Wellington Chibebe (also Secretary-General of the ZCTU), while the technical editorial team comprising Dr Godfrey Kanyenze (LEDRIZ Director), Timothy Kondo (ANSA Programme Co-ordinator), Prosper Chitambara (LEDRIZ Senior Economist) and Jos Martens (ANSA Associate) guided the research work. Following the production of the first drafts, the papers were presented to the General Council of the ZCTU at a workshop held in August 2009, where detailed comments were provided. The updated papers were further scrutinized at the annual retreat of the LEDRIZ board and staff in December 2009, attended also by the Executive Council of the ZCTU and its heads of departments as well as staff from ANSA. The analysis in this book is informed by the understanding that most African economies are characterized by the existence of two radically different parts: a modern or formal segment employing a small proportion of the labour force, and a traditional or non-formal segment employing the bulk of the labour force. This feature is a product of colonial capitalism that captured a small segment of the economy, the formal sector, leaving the bulk of the economy, the non- formal segment, under pre-capitalist modes of production. It also reflects the failure of post-independence policies to deal with this structural deformity. As such, this disarticulate structure of the economy implies that the formal sector has a growth momentum of its own, and relates to the non-formal segment in a manner that marginalizes and impoverishes the latter, resulting in uneven development – indeed, an enclave economy. This structural distortion implies that even in the presence of growth, the economy is unable to absorb the vast numbers of the unemployed and underemployed into the mainstream economy.

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Foreword

This book argues that the post-independence policies have failed to address the inherited enclave structure of the economy, resulting in the continued marginalization of the majority of the population and the entrenchment of poverty. By 2004, instead of the economy being formalized, four out of every five jobs were informalized, with the decent-work deficits that this implies. This is the underlying factor behind the current crisis. The solution should therefore be steeped in the adoption of people-driven policies that redress this enclave and dual structure to achieve inclusive growth and human development. While one can categorize the experiences of ESAP as largely manifesting market failure, the period since 1997 has clearly been dominated by state failure. The hand of the state has never been as visible in the affairs of the economy as it was during this period. It was an era characterized by policy inconsistencies and contradictions, even policy reversals, along with institutional overlap and decay. Never have so many policies been made in the name of the people without benefiting them, as was the case during this phase: inordinate price controls, multiple exchange rates, and land redistribution and indigenization initiatives. During this period, the state clearly showed signs of having been captured by a few individuals for their private benefit (a predatory state), eventually failing to provide basic services such as education, health and sanitation (a failed state). Furthermore, the state displayed lack of respect for the individual and collective rights of the people of Zimbabwe. Reconstituting the state, and transforming it into a democratic, accountable developmental state, is therefore a critical com- ponent of the recovery process. As is now the emerging consensus, for development policies to be sustainable, they should be formulated with broad-based stakeholder participation to engender national ownership. It is for such reasons that the book recommends the rationalization of the various forums for social dialogue to create one legis- lated national stakeholder consultative body, as is the case with the National Economic Development and Labour Council of South Africa. This book there- fore represents our desire for such an inclusive, participatory approach, and represents our input into the recovery and development of Zimbabwe ‘Beyond the Enclave’ to secure pro-poor, inclusive (shared) growth and development.

Lovemore Matombo President, ZCTU

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Acknowledgements

During the course of the production of this book, several people and organ- izations played a part from its genesis to completion. Firstly, we would like to thank the General Council of the ZCTU, which made the decision to update theBeyond ESAPbook and provided the impetus for the project. The General Council also engaged the writers of the individual chapters and gave detailed comments through a workshop held in August 2009. The Board of LEDRIZ played a central role in guiding the project, commenting on the various drafts of the chapters. We also want to put on record the immense role and contribution of the policy editors of the project, Dr Elizabeth Marunda and Cde Wellington Chibebe, both Board members of LEDRIZ, who gave direction and guidance from the time of the inception of the work to its completion. It is our hope that the work truly reflects the policy template that you so vigorously articulated at various stages of the work. Special thanks go to the writers of the individual papers, which formed the basis for the chapters of the book, who were willing to work inordinate hours to get them to an acceptable level of quality. These writers and their contributions are as follows: Dr Godfrey Kanyenze [Chapters 1, 7, 8 and 13]; Prosper Chitambara [Chapter 2]; Dr Prosper Matondi [Chapter 3]; Best Doroh [Chapter 4]; David Matyanga [Chapter 5]; Tsitsi Mariwo-Mbanje and Naome Chakanya [Chapter 6]; Dr Henry Chikova [Chapter 9]; Benson Zwizwai [Chapter 10]; Dr Medicine Masiiwa and Rongai Chizema [Chapter 11]; Dr Joseph Muzulu and Simbarashe Mashonganyika [Chapter 12]. The conceptual framework that informs the book owes a lot to the work of the late Professor Guy C. Z. Mhone, who developed and applied the notion of enclave growth to the economies of Africa. May this book be a celebration of his life and enduring work. We are especially indebted to Roger Stringer of TextPertise, who meticulously edited the book for publication. The book benefited from his extensive experience and expertise. Furthermore, the project owes a huge debt of gratitude to our co-operating partners, whose financial support made this book possible. ANSA supported the work from its inception, while the Royal Danish Embassy and AusAID generously funded the project. The other co-operating partners who provide institutional support to LEDRIZ (FNV-Mondiaal, SASK-Finland, FOS- Belgium, Steelworkers Humanity Fund of Canada, Solidarity Centre and Rosa Luxembourg Foundation) enabled LEDRIZ staff to work on the project, for which we are grateful. Finally, we would like to thank our publishers, Weaver Press for their unwavering support and commitment throughout the process of producing this book. We appreciate your commitment to excellence. The Editors

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