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The Decline of Zimbabwe-Case Study

Zimbabwe's economic performance has declined due to corrupt land reforms under Robert Mugabe that confiscated white farmers' land and gave it to supporters who lacked agricultural skills, causing strong sector decline. Foreign businesses also dropped out due to a law requiring 51% local ownership. Mining revenues went to politicians' pockets rather than taxes. To improve, Zimbabwe must stop corruption, rehabilitate irrigation systems to boost stable agriculture, which employs most workers, after climate conditions hurt farm output.

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121 views3 pages

The Decline of Zimbabwe-Case Study

Zimbabwe's economic performance has declined due to corrupt land reforms under Robert Mugabe that confiscated white farmers' land and gave it to supporters who lacked agricultural skills, causing strong sector decline. Foreign businesses also dropped out due to a law requiring 51% local ownership. Mining revenues went to politicians' pockets rather than taxes. To improve, Zimbabwe must stop corruption, rehabilitate irrigation systems to boost stable agriculture, which employs most workers, after climate conditions hurt farm output.

Uploaded by

Arga pratamaa
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Global Business Management

“THE DECLINE OF ZIMBABWE”

Anggota Kelompok :

 Amrina Rosyita (041924353018)


 Mochammad Aribowo Adi Sagita Putra (041924353040)
 Randrianantenaina Solohery Mampionona Aimé (041924353041)
 Muhammad Akbar Suharbi (042014353019)

UNIVERSITAS AIRLANGGA
SURABAYA
2021
Case Study 2 The Decline Of Zimbabwe

1. Why has Zimbabwe’s economic performance been so poor?


Answer :
Zimbabwe's economic performance has been poor for various number of reasons. The
most important one is the factor of Corruption Watchdog Transparency International ranked
Zimbabwe as one of the most corrupt nations in the world.

a. The first factor was when Prime Minister Mugabe launched a “fast-track” land reform
program that stimulated the confiscation by the state without compensation of land owned by
4,000 white farmers of the country’s strong agricultural sector. The confiscated land was
given away to ZANU-PF party and other supporters that lacked agricultural knowledge.
b. The second factor was in 2008 Indigenization and Economic Empowerment Act, which
required that enterprises doing business in Zimbabwe take at least 51% local ownership.
Resulting into foreign corporation businesses to drop out.
c. The third factor is that the country’s mining sector entitles all private licensing revenues owed
vanished into the pockets of army officers and ZANU-PF politicians. Therefore, taxes and
tariffs are higher for private enterprises.
d. The last factor is the fluctuating rate of HIV infections.

2. Do you think that Zimbabwe’s economic performance would have been better under a
different system of government? Which one? Explain your reasoning.
Answer :
I think that if Zimbabwe was under the British democratic political institutions, there
would have been more growth rather than decline in their economic performance. For
example, in the introduction it states how Zimbabwe was described Zimbabwe as “the jewel of
Africa” by Julius Nyerere. It was given that description because the country accomplished “a
strong economy, abundant natural resources, and a vibrant agricultural sector.” However, once
Robert Mugabe was elected with the help of the ZANU-PF party, the country became heavily
corrupted and declined economically.
3. What steps need to be taken now to improve the economic outlook for Zimbabwe?
Answer :
The country’s economic performance is a result of an erratic power supply, a lack of
capital, higher input costs, antiquated machinery and deficiencies in infrastructure. This decline
is the result of stalling investments and adverse climate conditions that hurt the agricultural
sector. In order to resolve and improve the economic balance one main step would be to stop any
further corruptions within the country. The second step is suggested by International Fund for
Agricultural Development (IFAD), asserts that the rehabilitation and maintenance of irrigation
systems must be of the greatest importance to stabilize agricultural production. Improving
irrigation systems would minimize crop failure, raise household incomes and increase food
security for rural smallholder farmers. Correspondingly, nearly 60 percent of Zimbabwe’s
workforce is employed in the agricultural sector.

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