Macroeconomic and Structural Adjustment Policies in Zimbabwe, 2002
At the time of its independence in 1980, Zimbabwe inherited a diversified and well-developed fina... more At the time of its independence in 1980, Zimbabwe inherited a diversified and well-developed financial sector relative to the size of its economy: there were five commercial banks, two discount houses, four merchant banks, three building societies, six finance houses and a Post Office Savings Bank (POSB). Several insurance companies, pension funds, specialist credit and development finance institutions also existed for the purpose of directing funds to preferred sectors such as agriculture and industry. The Reserve Bank of Zimbabwe (RBZ) sat (and still sits) at the apex of the financial system and was (still is) bestowed with the full responsibilities of a central bank. However, the financial sector was subject to various controls and government-induced distortions such that the financial sector exhibited many of the characteristics of financially repressed economies. This highly regulated system remained virtually unchanged until the economic reforms adopted in 1991 under the economic structural adjustment program (ESAP). Thus, financial liberalization was an important component of the economic reform measures implemented during the 1990s.
Increasing drought frequencies due to climate change, pose a serious threat to rain-fed farmers i... more Increasing drought frequencies due to climate change, pose a serious threat to rain-fed farmers in rural Africa where the policy thrust points to improving efficiency of these farmers. This article uses cross sectional data collected from 411 randomly selected farmers and applies the stochastic frontier method (SFM) to investigate the extent to which drought influences technical efficiency of smallholder farmers in Hurungwe, Zimbabwe. First, technical efficiency of smallholder farmers is computed using the SFM. Second, two groups of farmers, one from drought prone areas and the other from wet ecological zones, are compared with regards to their technical efficiency levels using a binary covariate which classifies the farmers into two groups. The findings show a low level of technical efficiency of maize farmers in Hurungwe. The average technical efficiency level is 45.3%. Drought is found to be detrimental to technical efficiency, with farmers in drought prone areas being 19% less e...
This is a report on the Zimbabwe industrial surveys conducted as part of the Regional Programme o... more This is a report on the Zimbabwe industrial surveys conducted as part of the Regional Programme on Enterprise Development (RPED). The report is based on the first and second rounds of data collection, conducted in June-July 1993 and 1994 respectively. The structure of the report is as follows. The next section briefly describes the original (1993) sample of manufacturing firms and the changes in its composition in the second round (1994). In chapter two consider changes in investment, employment and output. Chapter three investigates the relationships between efficiency, export performance and the domestic foreign ownership structure of firms. Chapter four looks at capacity utilization as reported by the firms in sample. Chapter five discusses the survey evidence on infrastructure and regulations. Chapter six examines the issue of competition and market structure. In chapter seven technical efficiency is estimated using a stochastic production frontier model. The RPED surveys genera...
As a result of frequent climatic hazards, crop insurance has become an effective risk mitigating ... more As a result of frequent climatic hazards, crop insurance has become an effective risk mitigating tool in agriculture, ease immediate financial pressure of a poor harvest and prevent poor smallholder commercial farmers from getting poorer. This study examined the determinants of crop insurance adoption by Smallholder Commercial Farmers using farm-level data from Mazowe district in Mashonaland Central Province of Zimbabwe. Based on three wards which were selected purposively, 165 farmers were randomly selected and interviewed using selfadministered questionnaires. The double hurdle model was employed, based on 150 farmers who reported to be growing similar crops, which are maize, tobacco and soya-bean. Econometric results of the double-hurdle model revealed that income, subsidies, knowledge on crop insurance,, perception on risk, farm size, farming experience and education positively influence crop insurance adoption and extent of adoption by smallholder commercial farmers. On the oth...
This study investigates the factors influencing smallholder farmer’s decision to participate in n... more This study investigates the factors influencing smallholder farmer’s decision to participate in non-farm employment activities and its impact on rural households’ food security status in the Mbire District of Zimbabwe. The analysis uses a treatment evaluation model and the associated propensity score matching (PSM) technique, which permits the comparison between the food security status of smallholder farmers who participate in non-farm employment activities and those who do not. Estimation of propensity scores enable us to identify the factors influencing smallholder farmers’ decision to diversify into non-farm employment activities. The results indicate that a number of demographic (gender and education of household head), infrastructural (internet access and distance to the main road) and farm level characteristics (land size, livestock herd owned and productive assets) have qualitative and quantitatively different impacts on rural households’ participation in non-farm employment activities. Further, the empirical analysis confirms that diversifying into non-farm employment activities improves rural households’ food security status. The results imply that non-farm employment activities can be a way out of food insecurity in Mbire district. The study therefore recommends the government and NGOs to induce the rural households to diversify into non-farm activities as they improve their food security status since the climatic conditions in the district are not well suitable for agricultural practices. Keywords: Non-farm employment; Propensity Score Matching (PSM); rural household food security; Mbire district of Zimbabwe DOI: 10.7176/JESD/11-22-06 Publication date: November 30 th 2020
List of Tables List of Figures List of Abbreviations and Acronyms List of Contributors Preface PA... more List of Tables List of Figures List of Abbreviations and Acronyms List of Contributors Preface PART I: INTRODUCTION AND OVERVIEW Macroeconomic and Adjustment Policies since Independence: An Introduction and Overview C.Mumbengegwi & R.Magubu PART II: MACROECONOMIC POLICY AND PERFORMANCE Macroeconomic Performance under Structural Adjustment: An Essay on Latrogenic Effects P.Robinson Distributive Policies and Economic Growth M.T.Nziramasanga & L.M.Soo Inflation During Structural Adjustment D.Durevall & P.Kadenge Labour Market Policies and Outcomes J.Knight PART III: FINANCIAL LIBERALIZATION, MONETARY POLICY AND CURRENCY CRISIS Financial Liberalization and Monetary Policy O.Nyawata & C.Mumbengegwi From Liberalization to Financial Crisis C.Mendis The Crisis in Asia: Are there Lessons for Zimbabwe? J.Gordon PART IV: TRADE LIBERALIZATION Macroeconomic Imbalances, Adjustment Reforms and Sustainability: A CGE Model Simulation R.Mabugu Trade Liberalization and Investment Response in Zimbabwe J.Rattso, R.Torvik & H.Mehlum Income Distribution Effects of Trade Liberalization: A CGE Analysis M.Chitiga-Mabugu PART V: SECTORAL PERSPECTIVES Macroeconomic Policy Impacts on Aggregate Agricultural Performance C.Mumbengegwi Macroeconomic Policies and the Manufacturing Sector H.Bjurek, D.Durevall & D.B.Ndlela Macroeconomic Policies and the Health Sector G.Mutangadura Subject Index Author Index
Macroeconomic and Structural Adjustment Policies in Zimbabwe, 2002
At the time of its independence in 1980, Zimbabwe inherited a diversified and well-developed fina... more At the time of its independence in 1980, Zimbabwe inherited a diversified and well-developed financial sector relative to the size of its economy: there were five commercial banks, two discount houses, four merchant banks, three building societies, six finance houses and a Post Office Savings Bank (POSB). Several insurance companies, pension funds, specialist credit and development finance institutions also existed for the purpose of directing funds to preferred sectors such as agriculture and industry. The Reserve Bank of Zimbabwe (RBZ) sat (and still sits) at the apex of the financial system and was (still is) bestowed with the full responsibilities of a central bank. However, the financial sector was subject to various controls and government-induced distortions such that the financial sector exhibited many of the characteristics of financially repressed economies. This highly regulated system remained virtually unchanged until the economic reforms adopted in 1991 under the economic structural adjustment program (ESAP). Thus, financial liberalization was an important component of the economic reform measures implemented during the 1990s.
Increasing drought frequencies due to climate change, pose a serious threat to rain-fed farmers i... more Increasing drought frequencies due to climate change, pose a serious threat to rain-fed farmers in rural Africa where the policy thrust points to improving efficiency of these farmers. This article uses cross sectional data collected from 411 randomly selected farmers and applies the stochastic frontier method (SFM) to investigate the extent to which drought influences technical efficiency of smallholder farmers in Hurungwe, Zimbabwe. First, technical efficiency of smallholder farmers is computed using the SFM. Second, two groups of farmers, one from drought prone areas and the other from wet ecological zones, are compared with regards to their technical efficiency levels using a binary covariate which classifies the farmers into two groups. The findings show a low level of technical efficiency of maize farmers in Hurungwe. The average technical efficiency level is 45.3%. Drought is found to be detrimental to technical efficiency, with farmers in drought prone areas being 19% less e...
This is a report on the Zimbabwe industrial surveys conducted as part of the Regional Programme o... more This is a report on the Zimbabwe industrial surveys conducted as part of the Regional Programme on Enterprise Development (RPED). The report is based on the first and second rounds of data collection, conducted in June-July 1993 and 1994 respectively. The structure of the report is as follows. The next section briefly describes the original (1993) sample of manufacturing firms and the changes in its composition in the second round (1994). In chapter two consider changes in investment, employment and output. Chapter three investigates the relationships between efficiency, export performance and the domestic foreign ownership structure of firms. Chapter four looks at capacity utilization as reported by the firms in sample. Chapter five discusses the survey evidence on infrastructure and regulations. Chapter six examines the issue of competition and market structure. In chapter seven technical efficiency is estimated using a stochastic production frontier model. The RPED surveys genera...
As a result of frequent climatic hazards, crop insurance has become an effective risk mitigating ... more As a result of frequent climatic hazards, crop insurance has become an effective risk mitigating tool in agriculture, ease immediate financial pressure of a poor harvest and prevent poor smallholder commercial farmers from getting poorer. This study examined the determinants of crop insurance adoption by Smallholder Commercial Farmers using farm-level data from Mazowe district in Mashonaland Central Province of Zimbabwe. Based on three wards which were selected purposively, 165 farmers were randomly selected and interviewed using selfadministered questionnaires. The double hurdle model was employed, based on 150 farmers who reported to be growing similar crops, which are maize, tobacco and soya-bean. Econometric results of the double-hurdle model revealed that income, subsidies, knowledge on crop insurance,, perception on risk, farm size, farming experience and education positively influence crop insurance adoption and extent of adoption by smallholder commercial farmers. On the oth...
This study investigates the factors influencing smallholder farmer’s decision to participate in n... more This study investigates the factors influencing smallholder farmer’s decision to participate in non-farm employment activities and its impact on rural households’ food security status in the Mbire District of Zimbabwe. The analysis uses a treatment evaluation model and the associated propensity score matching (PSM) technique, which permits the comparison between the food security status of smallholder farmers who participate in non-farm employment activities and those who do not. Estimation of propensity scores enable us to identify the factors influencing smallholder farmers’ decision to diversify into non-farm employment activities. The results indicate that a number of demographic (gender and education of household head), infrastructural (internet access and distance to the main road) and farm level characteristics (land size, livestock herd owned and productive assets) have qualitative and quantitatively different impacts on rural households’ participation in non-farm employment activities. Further, the empirical analysis confirms that diversifying into non-farm employment activities improves rural households’ food security status. The results imply that non-farm employment activities can be a way out of food insecurity in Mbire district. The study therefore recommends the government and NGOs to induce the rural households to diversify into non-farm activities as they improve their food security status since the climatic conditions in the district are not well suitable for agricultural practices. Keywords: Non-farm employment; Propensity Score Matching (PSM); rural household food security; Mbire district of Zimbabwe DOI: 10.7176/JESD/11-22-06 Publication date: November 30 th 2020
List of Tables List of Figures List of Abbreviations and Acronyms List of Contributors Preface PA... more List of Tables List of Figures List of Abbreviations and Acronyms List of Contributors Preface PART I: INTRODUCTION AND OVERVIEW Macroeconomic and Adjustment Policies since Independence: An Introduction and Overview C.Mumbengegwi & R.Magubu PART II: MACROECONOMIC POLICY AND PERFORMANCE Macroeconomic Performance under Structural Adjustment: An Essay on Latrogenic Effects P.Robinson Distributive Policies and Economic Growth M.T.Nziramasanga & L.M.Soo Inflation During Structural Adjustment D.Durevall & P.Kadenge Labour Market Policies and Outcomes J.Knight PART III: FINANCIAL LIBERALIZATION, MONETARY POLICY AND CURRENCY CRISIS Financial Liberalization and Monetary Policy O.Nyawata & C.Mumbengegwi From Liberalization to Financial Crisis C.Mendis The Crisis in Asia: Are there Lessons for Zimbabwe? J.Gordon PART IV: TRADE LIBERALIZATION Macroeconomic Imbalances, Adjustment Reforms and Sustainability: A CGE Model Simulation R.Mabugu Trade Liberalization and Investment Response in Zimbabwe J.Rattso, R.Torvik & H.Mehlum Income Distribution Effects of Trade Liberalization: A CGE Analysis M.Chitiga-Mabugu PART V: SECTORAL PERSPECTIVES Macroeconomic Policy Impacts on Aggregate Agricultural Performance C.Mumbengegwi Macroeconomic Policies and the Manufacturing Sector H.Bjurek, D.Durevall & D.B.Ndlela Macroeconomic Policies and the Health Sector G.Mutangadura Subject Index Author Index
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