
Contents
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1.1 Background 1.1 Background
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1.2 From Rhodesia to Zimbabwe: Statism, Destabilization, and Racialist Political Economy 1.2 From Rhodesia to Zimbabwe: Statism, Destabilization, and Racialist Political Economy
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1.3 Evolution of Zimbabwe’s Macroeconomic Policies, 1980–2008 1.3 Evolution of Zimbabwe’s Macroeconomic Policies, 1980–2008
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1.3.1 Pre-liberalization Period, 1980–90 1.3.1 Pre-liberalization Period, 1980–90
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1.3.2 The First Phase of the Economic Structural Adjustment Programme (1991–95) 1.3.2 The First Phase of the Economic Structural Adjustment Programme (1991–95)
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Trade ‘Liberalization’ Trade ‘Liberalization’
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Domestic Deregulation Domestic Deregulation
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Financial Sector and Monetary Policy Reform Financial Sector and Monetary Policy Reform
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Fiscal Policy and Tax Reform Fiscal Policy and Tax Reform
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1.3.3 The Zimbabwe Programme for Economic and Social Transformation 1.3.3 The Zimbabwe Programme for Economic and Social Transformation
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1.3.4 Millennium Economic Recovery Programme 1.3.4 Millennium Economic Recovery Programme
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1.4 The Pursuit of Ineffective Macroeconomic Policies 1.4 The Pursuit of Ineffective Macroeconomic Policies
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1.5 Costly Political and Policy Decisions 1.5 Costly Political and Policy Decisions
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1.6 Structure of the Book 1.6 Structure of the Book
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References References
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1 The Political Economy and Evolution of Development Policy in Zimbabwe
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Published:February 2016
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Abstract
Development management is a complex process of agency and power realignment. Broadly speaking, this chapter does two things: (a) it argues that understanding the evolution of development policy is best anchored in a political economy perspective; and (b) uses this framework to sketch an overview of policies/programmes in Zimbabwe during crisis. At independence in 1980, Zimbabwe enjoyed a vibrant economy yet with a harmful legacy of racialist colonialism. The economic gains of the 1980s and 1990s were largely reversed by 2000 due to cumulative factors, including South Africa’s policy of destabilization. Zimbabwe faced several economic and political challenges. The economy stunted, inflation reached record highs, and the financial and livelihood systems nearly collapsed. Various ‘corrective’ policy measures and instruments were enforced against the economic malaise, but some of these seem to have aggravated the situation, providing insights into the dos and don’ts in economic management under shock.
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