Five-country Study on Service and Volunteering in Southern Africa: Zimbabwe Country Report

The study documents and analyses civic service and volunteering in Zimbabwe and also identifies formal and informal civic service programmes in Zimbabwe

A Decade of Suffering in Zimbabwe: Economic Collapse and Political Repression under Robert Mugabe

On March 29, 2008, Zimbabwe will hold presidential and parliamentary elections. Few people believe that they will be free and fair or that Robert Mugabe and his Zimbabwe African National Union -- Patriotic Front party will fail to return to office. That is a tragedy, because Mugabe and his cronies are chiefly responsible for an economic meltdown that has turned one of Africa's most prosperous countries into a country with one of the lowest life expectancies in the world. Since 1994, the average life expectancy in Zimbabwe has fallen from 57 years to 34 years for women and from 54 years to 37 years for men. Some 3,500 Zimbabweans die every week from the combined effects of HIV/AIDS, poverty, and malnutrition. Half a million Zimbabweans may have died already. There is no freedom of speech or assembly in Zimbabwe, and the state has used violence to intimidate and murder its opponents. At the root of Zimbabwe's problems is a corrupt political elite that has, with considerable international support, behaved with utter impunity for some two decades. This elite is determined to hang on to power no matter what the consequences, lest it be held to account for the genocide in Matabeleland in the early 1980s and the wholesale looting of Zimbabwe that followed the mismanaged land reform in 2000. When change comes to Zimbabwe, the nation will have to rediscover the rule of law and the sanctity of persons and property. The public discourse and the economy will have to be reopened. The new government will have to embrace a more limited idea of government and rescind legislation that makes the operation of the private sector next to impossible. Moreover, the new government will have to find a way for the people of Zimbabwe to heal the wounds caused by decades of political violence

No. 62: Heading North: The Zimbabwean Diaspora in Canada

Studies of the Zimbabwean diaspora tend to focus on migrants in South Africa and the United Kingdom. This is the first major study of Zimbabwean migration to Canada. The report presents and discusses the findings of a SAMP survey conducted across Canada in 2010. It first discusses the recent history of migration from Zimbabwe to Canada and then provides a demographic and socio-economic profile of the Zimbabwean diaspora in Canada. The report also examines the linkages that Zimbabweans in Canada maintain with Zimbabwe, and the potential for return migration. According to the 2006 Canadian Census, there were 8,040 Zimbabweborn people in Canada, comprising 6,525 immigrants (permanent residents and naturalized citizens) and 1,515 non-permanent residents (students and temporary workers). Immediately after independence in Zimbabwe in 1980, there was an increase in migration to Canada. The numbers rose briefly again in the late 1980s and then remained relatively low and stable for most of the 1990s. In other words, although emigration from Zimbabwe increased in the 1990s as economic prospects deteriorated, only a small number moved to Canada. This changed dramatically after 2000. Between 2003 and 2009, at least 400 Zimbabweans per annum were granted permanent residence in Canada. The peak year was 2004, when 1,456 Zimbabweans became permanent residents. Prior to 2000, most Zimbabwean migrants to Canada entered in the economic immigration class. After 2002, refugees came to dominate the inflow. Ontario is by far the most popular destination for Zimbabweans. Between 1980 and 2009, for example, nearly 60% of all immigrants settled first in that province. Other significant populations of Zimbabweans are found in the provinces of Alberta (13% of the total), British Columbia (12%) and Quebec (10%). The Zimbabwean population in Canada generally settles in major urban centres: over 80% live in cities with populations of more than 350,000. Toronto is the most popular destination with 41% of all immigrants. Although immigration from Zimbabwe to Canada is dominated by refugees, the survey showed that most possessed good professional qualifications upon entry. For instance, at least 30% had a university degree before leaving Zimbabwe. However, 40% were asked to re-certify or re-train in Canada in order to work in a field for which they were already trained. This highlights the more general problem of recognition of qualifications that foreign-trained professionals face in Canada. After moving to Canada, 70% continued with their formal education. Immigrants to Canada frequently discover that their credentials are less desirable on the job market or they have to settle for significantly less skilled occupations than in their countries of origin. This certainly seems to be the case with Zimbabweans, with 35% of respondents noting that they are working in a job that does not make full use of their professional qualifications and experience. Once they have gained entry to Canada, many Zimbabweans acquire more secure status that enables them to stay permanently. Nearly 50% of the respondents indicated that they are now Canadian citizens, while 33% are landed immigrants (permanent residents). The survey presented the respondents with 15 quality-of-life indicators and asked them to consider which country they rated more highly on each indicator. On virtually all of the indicators, Canada was ranked better than Zimbabwe by a significant margin. These included medical services, personal or family safety, future of children, prospects for professional advancement, availability of employment and job security, and level of income. Zimbabwe ranked more highly than Canada on only one indicator: the quality of social life. Most of the respondents have a significant number of family members still in Zimbabwe: 68% have siblings, 59% have parents and 55% have grandparents in the country. A smaller number have children (16%) and spouses (5%) in Zimbabwe. Despite these family ties, just over half of the respondents (52%) said they had not visited Zimbabwe since moving to Canada. One in five respondents visit Zimbabwe at least once every 2-3 years and a further 27% at least once every 5–10 years. Among those who have visited Zimbabwe at least once since arriving in Canada, the main purpose was for family issues and events. While Zimbabweans in Canada are not frequent visitors to Zimbabwe, this does not mean that they do not maintain links there. For example, 29% have bank accounts, 24% own a house, 19% own land and 8% have investments in Zimbabwe. Two-thirds of the respondents remit money to Zimbabwe. The average annual amount sent is CAD2,703, similar to that sent by Zimbabweans in the United Kingdom. Nearly one-third send money to Zimbabwe at least once a month. A further 28% remit a few times a year. Over 60% of those remitting send money to close family members while another 20% send money to their extended family. Only 4% said they deposit funds into a bank account for their own future use. Formal channels such as money transfer agencies and banks are the main mechanism for sending money to Zimbabwe. Informal transfer channels are used by only 17%. Consumption dominates the use of remittances. Over 80% of respondents said that the recipients purchase food with the funds, while other significant uses of remittances include paying for medical expenses, school fees and meeting other household day-to-day expenses. Investment of remittances was not very common: in the previous year only 8% had sent remittances to start or run a business, 7% for savings and 4% to buy property in Zimbabwe. Diaspora engagement has the potential to address some of the challenges facing Zimbabwe, providing a potential avenue for Zimbabweans in Canada to contribute to the country’s reconstruction. More than half of the survey respondents (55%) agreed or strongly agreed with the statement that they have an important role to play in the development of Zimbabwe. Zimbabweans in Canada clearly maintain strong social, religious and cultural links with each other. There is a strong sense of community among Zimbabweans, especially those in smaller cities, and it is not uncommon to find a large Zimbabwean presence at family events such as birthday celebrations, weddings and funerals. Many also belong to organizations and attracting growing interest. For almost 15 years South Africa. The survey found that, given the opportunity, the Zimbabwean diaspora in Canada is primed to engage directly in development-related activities. At present, only a minority are involved with development organizations that have links and programmes in Zimbabwe, but there are high levels of interest in activities such as skills transfer through training, educational exchanges, working in Zimbabwe and providing distance teaching via the internet. Financial support would take the form of fundraising for projects in Zimbabwe, investment in business, sending remittances for development projects, and making charitable donations. Economic activities of interest include investment in infrastructure and import and export of goods between Canada and Zimbabwe. Studies among Zimbabweans in the diaspora elsewhere have shown that two-thirds of those based in the United Kingdom and South Africa are likely to return to Zimbabwe. What is the likelihood of return among Zimbabwean migrants in Canada? The survey respondents were almost equally divided, with 52% indicating that they have given some thought to return and at least 45% saying that they had given no or hardly any thought to the possibility. However, only 8% indicated that it was likely or very likely that they would return to Zimbabwe within two years. The likelihood of return rises to 20% within five years and to 49% at some point in the future. Clearly, Zimbabweans in Canada are worried about the state of Zimbabwe’s economy and political environment, and expect things to improve, which would set a platform for their return to the country. The survey suggests that there is unlikely to be a large-scale return movement of the Zimbabwean diaspora in the immediate future. Most Zimbabweans in Canada want to see positive signs of real economic and political change before they would seriously consider returning

Zimbabwe: From Hyperinflation to Growth

The hallmark of Zimbabwe's economic collapse is hyperinflation. The most recent official inflation figure is for February 2008: a whopping 165,000 percent year-over-year. At present (early June 2008), inflation is unofficially about 2.5 million percent a year. Not surprisingly, the Zimbabwe dollar has lost more than 99.9 percent of its value against the U.S. dollar during the past year.Zimbabwe's hyperinflation is destroying the economy, pushing more of its inhabitants into poverty, and forcing millions of Zimbabweans to emigrate. Between 1997 and 2007, cumulative inflation was nearly 3.8 billion percent, while living standards fell by 38 percent. The source of Zimbabwe's hyperinflation is the Reserve Bank of Zimbabwe's money machine. The government spends, and the RBZ finances the spending by printing money. The RBZ has no ability in practice to resist the government's demands for cash. Accordingly, the RBZ cannot hope to regain credibility anytime soon. To stop hyperinflation, Zimbabwe needs to immediately adopt a different monetary system. Any one of three options can rapidly slash the inflation rate and restore stability and growth to the Zimbabwean economy. First is "dollarization." This option would replace the discredited Zimbabwe dollar with a foreign currency, such as the U.S. dollar or the South African rand. Second is a currency board. Under that system, the Zimbabwe dollar would be credible because it would be fully backed by a foreign reserve currency and would be freely convertible into the reserve currency at a fixed rate on demand. Third is free banking. This option would allow commercial banks to issue their own private notes and other liabilities with minimum government regulation. Central banking is the only monetary system that has ever created hyperinflation and instability in Zimbabwe. Prior to central banking, Zimbabwe had a rich monetary experience in which a free banking system and a currency board system performed well. It is time for Zimbabwe to adopt one of these proven monetary systems and discard its failed experiment with central banking

No. 74: Informal Entrepreneurship and Cross-Border Trade between Zimbabwe and South Africa

Informal cross-border trading in Zimbabwe has become more than a survivalist strategy and should be seen as an important pillar of the country\u27s economy. This report, part of SAMP’s Growing Informal Cities series, seeks to provide a current picture of informal cross-border trading in Zimbabwe and provides detailed insights into the activities of traders from the capital, Harare, who travel regularly to Johannesburg, South Africa, as part of their business. The traders make a monthly profit that far exceeds the salaries of most Zimbabweans in formal employment. Furthermore, many traders have been able to grow their businesses to such an extent that they hire people from outside their families. In Zimbabwe, this trade remains a female-dominated activity and traders are generally well educated and relatively young. Almost all respondents interviewed had started their businesses in the post-2000 era. Most had never held a formal job and went into informal cross-border trading either because they were unemployed or already involved in informal sector activities in Zimbabwe. This report notes important contributions these traders make to both the Zimbabwean and South African economies. The contribution of the informal economy in generating jobs and reducing unemployment needs to be acknowledged in Zimbabwe by policies that encourage rather than restrict the operation of informal trade

A quantitative analysis of Zimbabwe's land reform policy: An application of Zimbabwe SAM multipliers

This study was designed to quantitatively investigate the economy-wide impact of land reform policies in Zimbabwe. Land reforms came with the realm of independence in Zimbabwe. Four models were used to implement the reform policies. The paper uses the updated 1991 Social Accounting Matrix for Zimbabwe and the Central Statistics Office's household data on resettled families in Zimbabwe. The paper computes the sectoral SAM multipliers and then uses household data on resettled families to simulate the impact of specific land reform models on the economy. The simulated results show that land reform, if well planned and systematically and carefully implemented, could generate economy-wide benefits for Zimbabwe and could lead to income redistribution in favour of low-income household groups, while maintaining an increase in households' aggregate income.Land Economics/Use,

Foreign Direct Investment in Zimbabwe: The Role of Institutional Factors

The purpose of the paper is to examine the impact of property rights on foreign direct investment (FDI) in Zimbabwe for the period 1964-2005. While the macroeconomic determinants of FDI have been analysed to a considerable extent in past empirical work, the role of institutional factors such as the protection of property rights and the efficiency of the legal system has been underexplored. Using a multivariate cointegration framework, the paper employs a newly constructed de jure property rights index for Zimbabwe to determine the impact of property rights on FDI. The empirical evidence shows that property rights are consistently an important explanatory variable of FDI in Zimbabwe, even after controlling for periods when there are no significant new foreign capital inflows. Other significant explanatory variables of FDI in Zimbabwe are the real gross domestic product (GDP), capital intensity, the external debt to GDP ratio, political instability as well as the educational levels.Foreign Direct Investment (FDI), Property rights, Cointegration and Zimbabwe

The Cost of Zimbabwe's Continuing Farm Invasions

In the late 1990s, the government of Zimbabwe held a conference on land reform in Zimbabwe. The government, the interested parties (including the farmers), and international aid agencies reached a broad agreement. That agreement, however, was never implemented. In 2000, in an attempt to destroy the opposition, which derived much support from the commercial farmers and their employees, the government began what it eventually called the "Fast Track Land Reform" exercise

Macroeconomic and agricultural reforms in Zimbabwe

Using a CGE (computable general equilibrium) model for Zimbabwe with 1991 as base period, this paper examines quantitatively the income and equity effects of macroeconomic reform measures in isolation and in conjunction with potentially complementary changes in agricultural sector policies. Some important features of the CGE model are an explicit focus on agriculture, distinction among various rural and urban household groups, and detailed specification of factor markets. Specific aspects of economic policy existing in the pre-reform benchmark year are taken into account in the base model, such as the administered setting of the foreign exchange rate, quantitative import restrictions, and government-determined maize prices for domestic producers and grain millers. The model makes use of a 1991 SAM (social accounting matrix) for Zimbabwe as database.Social accounting Zimbabwe ,mathematical models ,zimbabwe ,TMD ,

Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies

Using an agriculture-focused CGE model for Zimbabwe with 1991 as base period, this paper examines quantitatively the income and equity effects of trade liberalization in isolation and in conjunction with potentially complementary changes in fiscal and land policies. Trade policy reform alone (dismantling of import and foreign exchange controls, and reduction of import taxes to a low uniform rate) is shown to increase aggregate disposable household income significantly. However, the least income gain accrues to smallholder farm households, which account for about four-fifths of the poor in Zimbabwe, so the equity impact is unfavorable. Concurrent implementation with specific changes in government expenditure and tax policies and two alternative stylized land redistribution schemes yields differing outcomes in terms of aggregate household income growth and its distribution.Trade liberalization Econometric models., Zimbabwe Economic policy., Income distribution Zimbabwe., Fiscal policies ,