Beyond ESAP: Framework for a Long-term Development Strategy in Zimbabwe Beyond the Economic Structural Adjustment Programme (ESAP)This report emphasizes the need to design an alternative development model to the Economic Structural Adjustment Programme (ESAP) in Zimbabwe. While acknowledging that SAPs are necessary, the study shows that they are insufficient in fostering development (that is, growth with equity). Zimbabwe's economy is characterized by a number of structural rigidities such as unequal access to land and finance whilst a large proportion of its population is engaged in the informal sector. It is the contention of the report that under such conditions, there is nothing inherent in ESAP policies that will lead to development. The main focus of the report, as opposed to SAPs, is to redefine the role of the state in the economy. While SAPs emphasize the rolling back of the state, this report is rooted in the premise that market failures are rampant in most less developed countries, including Zimbabwe. The state needs to intervene in factor markets, in the development of industrial and technological capabilities in order to foster competitiveness, etc, so as to deal with such market failures. (DÜI-Hff). |
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activities Adjustment Programme Africa agricultural sector allocation average bottom-up capital characterised communal areas communal sector comparative advantage competitive costs crops decentralised decline development strategy domestic dualism economic development efficient employment enhance enterprises ESAP exchange rate farmers financial sector firms foreign exchange formal sector funds gross domestic product human resource development implementation important incentives income increase industrial sector industrialisation inefficiencies informal and communal informal sector infrastructure inputs institutions interest rates intervention investment labour force labour intensive labour market labour market policies land liberalisation LSCF macroeconomic manufacturing sector market failures measures micro-enterprises Morgan Tsvangirai Muzulu National non-formal sectors non-tradeable goods sectors Organisation output private sector production recommended redistribution reform resettlement resolve result retrenchments role savings skills social structural adjustment subsidies surplus labour targeted technical trade policy transformation wages World Bank ZCTU Zimbabwe dollar Zimbabwe Stock Exchange Zimbabwe's Zimbabwean