Picking Up the Pieces of Zimbabwe's Economy
The Centre for International Governance Innovation Technical Paper No. 5
45 Pages Posted: 19 Oct 2008
Date Written: October 18, 2008
Zimbabwe's prolonged crisis illustrates the consequences of short-sighted and inappropriate economic policies, as it continues to fail to realize its potential to become a strong, independent state. Triggered in part by the Mugabe government's decision to ignore fiscal constraints, and exacerbated by increased social unrest and ballooning inflation, Zimbabwe's economic performance lags far behind that of neighbouring South Africa or Zambia. Miraculously, Zimbabwe has managed to avoid falling into complete collapse - the result of low but consistent levels of foreign direct investment, official development assistance, and strong Sino-Africa relations. This paper surveys Zimbabwe's economic crisis, and discusses some of the factors impeding the country's downfall. It concludes with recommended areas of focus for economic recovery.
Keywords: Zimbabwe, economy, Africa, Fragile States
JEL Classification: O12, D60, D72, E10, E62, E63, F14, F21, F22, F23, F31, F35, F34, I12, I32
Suggested Citation: Suggested Citation