The paper "Zimbabwe Economic Growth and Development " is a great example of a macro & microeconomics case study. After independence in 1980, Zimbabwe inherited a dual economy that was characterized by well developed modern sector and a largely poor rural sector that provided livelihood to approximately 80 per cent of the nation’ s population (Green, Reginald and Xavier, 1986). In order to address this anomaly, poverty reduction became a priority to the Zimbabwean government in the first decade of independence. The country’ s real GDP growth averaged 3-5 per cent per year recording a record high of 8 per cent in 1990.
Government spending was towards the expansion of rural infrastructure, increased social sector expenditure and redressing economic and social inequalities through the land resettlement program (Steenkamp and Rodney, 2006). The various reforms that were initiated, in particular, the adoption of multi-currency such as South African rand and US dollar as its official currencies and the cash budget system, adopted by Zimbabwe’ s government in March 2009 has helped the country to restore macro-economic stability and support an emerging economic recovery (Ravallion, 2010).
In response to the more liberalized and stable economic environment under the STERP (Short-Term Emergency Recovery Program), Zimbabwe’ s real GDP grew by 5.7 per cent in 2009 and has been estimated to have risen by about 8 per cent in 2010 (United Nations Development Programme, 2010). In recent years, confidence in the country’ s business environment has been growing, as the country’ s economy has undergone a period of change in recent years. 2.0 Zimbabwe’ s Employment Employment statistics in the country are a contentious topic. Newspaper reports- both in international and local publications- from time-to-time have routinely claimed that the rate of unemployment in the country stands at 80 per cent and this is accompanied by “ rampant informality” (Ravallion, 2010).
In contrast, the CSO (Central Statistical Office) reported an unemployment figure of 9.4 percent for the year 2004. The report also indicated that less than 14 percent of the population is employed in the informal sector.
Bautista, Romeo, and Marcelle Thomas. 2000, Trade and Agricultural Policy Reforms in
Zimbabwe: A CGE Analysis. In Third Conference on Global Economic Analysis.
Davies, Rob, and Jorn Rattso. 2007, Growth, Distribution, and Environment: Macroeconomic
Issues in Zimbabwe. World Development 24 (2):395-405.
Durevall, Dirk, and Daniel B Ndlela. 2001, Macroeconomic Policies and the Manufacturing
Sector. In Macroeconomic and Structural Adjustment Policies in Zimbabwe,
edited by C. Mumbengegwi. London: Macmillan and Palgrave.
Goderis, Benedikt, and Vasso P Iannidou. 2006,. Do High Interest Rates Defend Currencies
During Speculative Attacks? New Evidence CSAE WPS/2006 - 11.
Green, Reginald Herbold, and Xavier Kadhani. 1986, Zimbabwe: Transition to economic
crises 1981-1983: Retrospect and Prospect. World Development 14 (8):1059 –
IMF 2004, Zimbabwe: 2004 Article IV Consultation. In IMF Country Report No. 04/297.
Washington D.C: International Monetary Fund.
Mabika, Sydney E. 2001. Monetary Policy Framework in Zimbabwe. In International
Conference on Monetary Policy Frameworks in Africa. The South African
Reserve Bank, Johannesburg.
Matibe, P. (2008-07-17). "The Zimbabwe Situation". The Zimbabwe Situation. Retrieved
Ravallion, Martin (2010), "Your new composite index has arrived: Please handle with care",
VoxEU.org, 14 October.
Steenkamp, P. J and Rodney, D. (2006). Public Management in a Borderless Economy.
Thabethe, S 2009, Southern African Development Community Gender Protocol Baseline Study:
Zimbabwe, available at http://www.genderlinks.org.za/article/sadc-gender-protocol- barometer-baseline-study-zimbabwe-2009-10-16, accessed 11 January 2011.p.25.
United Nations Development Programme 2010, Human Development Report: The Real Wealth
of Nations, New York: Palgrave Macmillan for the UNDP.