zvirokwazvo ndinoti kwamuri I make known to you, brethren, the good news of Economics. Im loving the weather today, so i just feel wanna tell someone Global and Zimbabwean economic history.Maybe I will write a paper that chronicles and unpacks all the major economic events since madhongi achinenyanga up to now.1945 to 1970s state led development paradigm was fashionable otherwise known as Keynesian economics. State led development meaning governments had to play big brother in almost all economic activities. In 1970s because of oil price shocks, Debt crisis and global recession some economist started to question the role of government in state development, and that is when we see guys like Anne Kruger and Robert Solow writing on state failure which marked the birth of Thatcherism or Reaganomics thus market led development now. This school of thought emphasized state minimalism saying governments must only regulate and leave economic activities to private sector.Personally i think state development is good especially for developing nation, there is some Chinese guy i think who wrote a book called Kicking away the ladder its a must read book its good, it basically talks about how developed nations discourage developing nations from using the same policies that they used to develop hence kicking away the ladder.You can see this in the of zimbabwe, From 1965 when the Rhodesian government declared UDI (unilateral declaration of Independence) and was slapped with sanctions by the British government, up to the first decade of independence there was state led development. The Rhodesian government responded by implementing the ISI (import substitution industrialization Strategy) and because of this by 1980 Zimbabwe had the second most sophisticated and diversified industrial base in Africa, of course after South africa. By then Zim had per capita income levels above many countries including China and the zimbabwean dollars was stronger than the American dollar and the British pound. 1980 after independence the then new government introduced growth with equity which was an economic blue print just like ZIMASSET, schools hospitals were being built to address the structural deformity that was created by white supremacy and thing were okay. However since there was a lot of government expenditure the national debt started to rise and in 1991 the government approached the world bank and IMF for funds and was forced to implement ESAP ( economic structural adjustment program) in order to get funds. So ESAP was a conditional based program, the government had to Liberalize the economy, deregulate and Privatize state owned companies. Remember kicking way the Ladder, so ESAP encouraged market led development and it was up to 1996. The SAP programs were only introduced to developing countries in Africa and Latin America. Things started going bad in Zimbabwe. 14 November 1997 government announced that it was to to give war veterans $50000 once off lump sum payment and $2000 pension per month, there mere announcement resulted in our currency collapsing by about 70% against major currencies. This increased import costs blablabla ndaneta ini, 1998 Zim Government was funding a war in DRC 12 to 18 million per month and all this money was not budgeted for.Things got bad opposition parties started to form,1998 Crisis coalition was formed 1999 MDC was formed etc
Posted on: Wed, 19 Nov 2014 08:02:38 +0000
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