IMPACT OF ESAP IN ZIMBABWE PDF
Children: Implications for Social Welfare in Zimbabwe,” The Journal of ESAP. Sub Sahara Africa. Additionally, African elites have lost their. However, J.T. Chipika and others, in their book Effects of Structural Adjustment in Southern Africa, note that although ESAP was accepted as a. The expected dividends of ESAP did not materialise, and thus many an assessment of their impact and of what they suggest for the future.
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Skip to main content. Log In Sign Up. Welcome Mudyiradima Student Number: The period was coupled with the wholesome control of the economy by the government regulations in the form of trade policy restrictions on foreign trade, foreign currency earnings and usage, imports and exports, control on domestic prices of major consumer seap and wage control.
The ills of the pre – ESAP era to included low economic growth at 3. The period was also coupled with demand on goods and services which often outstripped supply leading to artificially high product prices. Tight foreign currency exchange controls and general market protection strategies made it difficult for companies to import key raw materials, machinery, spare parts and finished consumer and industrial goods.
‘ESAP was never ideal for Zim’ | Celebrating Being Zimbabwean
Thus these led to the general economic stagnation which triggered the need to structurally adjust the economy. Despite the negatives, the infant mortality rate fell from per 1, births to 50 per births between and and life expectancy increased from 56 to 64 years in the same period Ismi ESAP aimed at making Zimbabwean economy more market oriented by removing government controls and interference, reducing government budget deficit, emphasizing investment in production sectors impxct agriculture, mining, manufacturing as well as improving infrastructure in transport, power and communication ZMFEP These were summarized by ZMFEP as policy reform in public finance, trade liberalization, privatization of public institutions, economic regulation, investment promotion, monetary policy and sector reforms, and addressing social problems brought about by the economic structural changes.
However the implementation of the programme led to positive and negative political and socio — economic impact to the populace of Zimbabwe and zimbsbwe are evaluated below. According to Ismieconomically these measures led to massive closing down of companies and increased poverty and unemployment.
This paper seeks to explore the effects of ESAP. In doing so the conditions of ESAP and their effects to the economy and the citizens are considered.
Socially ESAP, through the reduction of government expenditure and removal of government subsidy, had a negative impact on education with special attention to enrolment of boys and girls at both primary and secondary level of education Makoni Upon the attainment of independence the ompact committed itself to provide universal free primary education and a massive expansion of secondary education.
This saw secondary school enrolment level rising by Teacher pupil ratio also increased from 1: However during this period the proportion of girls decreased by 1. This was not sustainable given the unfavourable economic growth which was projected at 5. This prompted the government in January under ESAP, to introduce primary school fees and an increase in secondary school fees in urban areas. On tertiary education there were massive demonstrations and boycott of classes by University of Zimbabwe students in demanding an increase in grants to offset difficulties resulting from devaluation and inflation.
This led to poor welfare support in terms of accommodation, transport, food and books at various tertiary institutions. In addition some disparities were created between the school fees charged in low density areas and high density areas as if there were no children attending low density schools and vice versa.
ESAP had also a negative impact on slowing down the pace of the land reform programme that was being implemented by the government.
This was on the issue of diverting attention to concentrate on the economic down turn yet at the same time the retrenched workers found their way to the rural areas as they could not cope with the escalating cost of living in urban centres as zimbbwe by Tekere This created more pressure and increased the demand for land as people recognised land as the only zimbanwe asset that could be utilised for a living as indicated by Makoni The other effect of ESAP on land reform was that the target beneficiaries changed from poor landless to those with the capability to make the land productive.
These were on paper referred to the esa; yet in reality they were members of the elite. This has also been used by the donor world as a hiding stone of not supporting the land reform through fulfillment of their financial pledges.
ESAP, as impach by Ismi perpetrated a decrease in manufacturing. Ismi further indicated that the period to was wholly characterized by a lack of industrial development. This subsequently led to GDP falling by 5. It was no longer secure to work as any eventuality could happen thus denting planning ahead. However the adoption of ESAP, which was anticipated to jump start the economic development in the country, did not brought about the required outcome other than further plunging the country into the economic quagmire.
Economically high interest rates that had been necessitated by ESAP through the removal of subsidies zimbaabwe agricultural inputs and reduction in government spending during the ESAP period had a negative impact on farmers.
This is because the price of inputs went astronomically up beyond the reach of the small scale and communal farmers. On the other hand liberalization of trade also led to a reduction in the production of maize. It can be noted that the higher exap prices due to ESAP have clear benefits for the impxct scale impacf sector, however they never benefited the rural communal farmers, who heavily relied on government subsidies for their farm inputs, Riphenburg Therefore only the minority commercial farmers benefited from the increased producer prices.
These producer prices were not cascaded down to the employees who did most of the work due to introduced collective bargaining during ESAP. On the other hand, although ESAP led to the disbandment of the Agricultural Finance Cooperation AFC which was imapct loans to small scale farmers to boost their productivity, it led to the formation of a fully flagged commercial bank, Agribank into extend financial services to all members of the public as indicated by Tekere zimbabwr This came as a result of ESAP.
There was a great increase in cost of living during ESAP which was beyond the reach of many ordinary Zimbabweans. Prices of basic commodities escalated and this was fueled zimbabwee the removal of subsidies as a result of a cut in government expenditure impaxt the decontrol of prices, as asserted by Kanji This resulted in huge increase in cost of living.
The devaluation of the Zimbabwean dollar, another component of ESAP, meant an escalating cost of imported inputs for manufactured products. Kanji indicated that cost of living for lower-income urban families rose by 45 per cent between mid and mid whilst that for higher income groups rose by 36 per cent, Central Statistical Office CSO The increased prices of basic foods in this period were a direct result of the lifting of food subsidies and not the importation of food as a result of drought, Kanji The poverty gap more than doubled between andincreasing from 0.
Origins of the Zimbabwe crisis — Helen Suzman Foundation
Electricity charges in November rose by It can be noted that before the implementation of ESAP the government controlled prices. Therefore a zmbabwe shift, although it encouraged laissez faire among the players on the market, it led to the cumbersome increase in prices which the consumers could not bear. Above all this was not proportional to their income. Generally, because of the increased cost of living and a depleted income base ESAP perpetrated poverty among the citizens of Zimbabwe.
Moyo reported that since Zimbabwe was among the 16 Sub-Saharan countries that were experiencing reversals in human development, meaning that poverty was now increasing.
A CSO study revealed that poverty in Zimbabwe increased from CSO also revealed that there was an inequality on the zzimbabwe of poverty between men and women. The introduction of ESAP brought about massive employment instability. Many Zimbabweans were retrenched in agriculture, textile, clothing, leather and construction industries, as indicated by Kanji The programme also led to a reduction of 25 per cent in civil service staff by thus leading to loss of income for people who were once secure.
During ESAP the government also introduced the system of collective bargaining for wages and conditions replacing government intervention in wage-setting except for farm workers and domestic workers.
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This severely exposed the workers from employment and terminal benefits injustices thus contributing to an increase in poverty. As supported by Riphenburg ESAP reverse the gains made during the s and led to a general decline in real wages, employment opportunities and job security affecting both male and female workers.
This further plunged the citizens into the pool of poverty. The collective bargaining system, introduced by the government to promote economic labour so as to maximize profitability of firms, placed the employer at an advantage and at the same time reduced the cost of labour in production. Employers therefore could offer the workers low wages without arbitration in a salary dispute. This is done through the destruction of locally owned enterprises and the promotion of multinational businesses.
Liberalisation usually results in flooding of the local market with cheaper imported goods which consequently destroys the local business whose prosperity wholly depends on the availability of protected market. Thus liberalisation opened the local market to competition from imported finished goods which therefore impose massive strain on local companies. More so, with reference to exports, local companies found it very difficult to increase their exports to international markets especially those companies that were previously not involved in exports, Mlambo Because of liberalisation, by Zimbabwean textile manufacturing companies had fallen from to Mlambo This was attributed to the closure of Cone Textiles with a workforce of 6 workers, citing rapid increase in cotton lint prices as a result of removal of government subsidies for lint in December Mlambo Thus the company could not compete with foreign companies for example from South Africa whose textile goods exporters were still enjoying government subsidy unlike their counterparts in Zimbabwe, Mlambo Whenever the local companies collapsed their share of the local market was quickly taken over by the multinational companies which flooded the domestic market with their products.
However as revealed by Tekere cross border trading included merchandise that crossed the border without being officially recorded while under-invoicing and under zimbawe were rife, thus undermining revenue for the government and promotion of smuggling. Some traders also used unofficial routes leading to their numbers not captured in the national statistics. The liberalisation of exchange controls also perpetrated informal cross border trade.
On the social front cross border trade as a result of liberalisation of trade brought some effects on family setup. Because of the economic down turn inflation and other determinants there was pressure to earn extra money and this was especially impzct by women who are responsible for family essentials, Riphenburg, Thus women took up new roles such impatc cross border trading especially urban women who felt the heinous impact of ESAP.
A study carried out by Mupedziswa and Gumbo revealed that out of 17 women traders in the sample, eight were married and had children. The married women had numerous worries than their counterparts who are non-cross border traders and sleep at their respective zumbabwe while they spend more time away from their families. This is summed up by a quote from Mupedziswa and Gumbo Child abuse is rampant.
Children can develop delinquent tendencies. Even if you leave them with another adult husband or relatives it is not the same. Husbands usually come back home at the imact when the children have already gone to bed. They can be very promiscuous in our absence and they zimbabee have some worries about us.
Family disintegrations were imminent as some families opted to send their children to rural areas another move that hinders the development of children. Mupedziswa and Gumbo mentions that among the 17 interviewed there were fears of separation among them, however imact traders could not stop their activities as a result of the hardships faced. Although Mupedziswa and Gumbo asserts that during the early phase zlmbabwe ESAP cross border trade was a brisk business for the women, they were however vulnerable to robbers especially in South Africa.
Socially ESAP brought about discrimination against women despite the background of women empowerment. However because of the hardships back impzct the women were left with no option but to be in conflict with law through bribing Customs Excise officials, hiding goods on their persons and entering other countries illegally.
In doing so they risked their goods being confiscated and or pay a fine thus reducing their profits. Mupedziswa and Gumbo noted that one cross border trader had to stop her trading after her goods were impounded by customs officials at the Zambian border and could not raise the required funds. All these came as a result of the impact of ESAP at home. Their one size fits all approach did not produce the intended results as the needs and priorities of developing countries impzct unique.