Full Answer Section

• • Experienced white farmers were replaced by individuals lacking the necessary skills and resources, leading to a sharp drop in exports of key commodities like tobacco and cotton. ([International Business: Competing in the Global Marketplace, 13th ed., Pg. 627])
• Economic mismanagement: The Zimbabwean government has been criticized for its handling of the economy. This includes:
  • Excessive government spending:Leading to high budget deficits and inflation.
  • Currency printing:To finance government spending, the government resorted to printing excessive amounts of money, leading to hyperinflation and a devaluation of the Zimbabwean dollar.
  • Price controls:Attempts to control prices of basic goods often created shortages as producers were discouraged from selling at artificially low prices.
• Political instability: Zimbabwe has faced periods of political turmoil and violence, which has deterred foreign investment and disrupted economic activity.
• External factors: Global economic downturns and fluctuations in commodity prices have also impacted Zimbabwe’s export earnings.

2. Do you think Zimbabwe’s economic performance would have been better under a different system of government? Which one? Explain your reasoning.

It’s difficult to say definitively whether Zimbabwe’s performance would have been better under a different system of government. However, some arguments can be made:

• Potential benefits of a democratic system:
  • Transparency and accountability:A democratic government with strong institutions could potentially provide greater transparency in economic decision-making and hold leaders accountable for their actions.
  • Foreign investment:A stable democratic system might be more attractive to foreign investors, bringing much-needed capital and expertise to Zimbabwe’s economy.
  • Focus on long-term growth:Democratic governments are often more likely to prioritize long-term economic growth and development over short-term political gains.
• Challenges of implementing a democratic system:
  • Historical context:Zimbabwe has a limited history of democratic rule. Building strong democratic institutions takes time and effort.
  • Vested interests:Those who benefit from the current system might resist change.

It’s important to note that a democratic system is not a guarantee of economic success. Many factors contribute to a nation’s economic well-being. However, the potential benefits of transparency, accountability, and attracting foreign investment suggest that a well-functioning democratic system could offer a path towards improved economic performance for Zimbabwe.

3. Discuss the steps needed to be taken now to improve the economic outlook for Zimbabwe?

Several key steps can be taken to improve Zimbabwe’s economic outlook:

• Political stability:Creating a stable political environment that fosters trust and encourages investment is crucial.
• Economic reforms:Implementing sound economic policies like:
  • Fiscal discipline:Reducing government spending and controlling budget deficits.
  • Currency stabilization:Addressing hyperinflation and establishing a stable currency.
  • Property rights:Ensuring clear and secure property rights to encourage investment.
  • Market liberalization:Reducing government control over the economy and allowing market forces to play a greater role.
• Agricultural revival:Investing in infrastructure, providing training and support to new farmers, and encouraging sustainable agricultural practices are essential for regaining Zimbabwe’s agricultural prowess.
• Foreign investment:Creating an attractive environment for foreign investment by ensuring a stable legal framework, reducing corruption, and addressing any bureaucratic hurdles.
• Education and skills development:Investing in education and skills training for the workforce can improve productivity and competitiveness in the global marketplace.

Conclusion:

Zimbabwe’s economic recovery will require a multi-pronged approach, addressing the root causes of the decline and implementing sound economic policies. Political stability, responsible governance, and a commitment to long-term economic development are key ingredients for a brighter future for Zimbabwe.