:: Zimbabwe Background
Politics & Economics
 |
After the success of the 1980's, Zimbabwe's economy began to decline and in 1991 ESAP (Economic Structural Adjustment Policy) was introduced with the aim of liberalising the economy, lifting price controls and encouraging competition from imported goods. Essentially the gains for western trade partners and the World Bank were that debts were more likely to be repaid and a market was made available for imported goods. Prices of goods initially increased with the enforcement of a more realistic foreign exchange rate, and the poor became poorer.
During the 1990's, mining and mineral exports continued to contribute to the economy with exports of gold, asbestos, coal, copper, platinum, silver and more providing around 40% of export income. Agriculture was also a major earner with tobacco, fruit & vegetables of excellent |
quality being produced.
Most of the countries power comes from the hydroelectric dam at Kariba. The remainder is generated by thermal power stations at Hwange Colliery. Zimbabwe has immense coal reserves of around 30,000 million tonnes. Most power is directed to urban areas, with rural villages remaining without electricity. This fact is something that
continues to cause deforestation throughout the country.
Zimbabwe also opened Africa's first ethanol plant, using sugar cane to produce the ethanol which was then blended with petrol to provide fuel. Water comes from Zimbabwe's 21 major dams, as well as around 7,000 smaller reservoirs. Health care and education has been historically good in Zimbabwe with social welfare available and three major universities in the country. These services, along with the majority of Zimbabwe's infrastructure, has started to fall into serious disrepair.
Mugabe has always been a supporter of a one party state and a centralised economy. This stance was abandoned under pressure from Zimbabwean businessmen, the World Bank and aid donor countries following independence. However, democracy in the usual sense of the word appears to have been given scant regard with the president enjoying an unlimited term of office and a draconian control over the military, press and the judiciary.
The vigorously pursued land reform policy, although rooted in equitable principles, has spiralled out of control, becoming a personal act of vengeance. Farms have largely stopped planting, and they are failing to produce enough food for the population, let alone for export. Sanctions are being imposed from all sides and Zimbabwe has been suspended from the Commonwealth.
|
