A Discussion of Aid and Development in Zimbabwe.

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                                       Hollie Dowdeswell, Laura Bryant, Patricia Duffy and Lucy Bryan.

CONTENTS

Introduction                                                          page 2-3                                              

World Bank                                                          page 3-8

Non-Governmental Organisations                      page 8-11

Government, politics and aid                           page 11-15

Corruption                                                        page 15-16

Conclusion                                                        page 16-17

Bibliography                                                     page 17-18

A Discussion of Aid and Development in Zimbabwe.

Introduction

Zimbabwe is located in Southern Africa between South Africa and Zambia and also boarders with Botswana and Mozambique. The country has many resources available for exploitation, such as coal, gold, iron ore and copper. However, this is a country that is frequently plagued with devastating droughts. This has a huge effect on its 11,000,000 population, of which 8,000,000 are dying of starvation (www.news.bbc.co.uk).

Zimbabwe was initially a British Colony and in 1961 there was a constitution that favoured the control of Zimbabwe to whites, by 1965 Zimbabwe had declared itself independent from Britain, however this was not recognised by the UK. In 1979 there was a UN sanction and an uprising by guerrilla groups leading to free elections and finally true independence in 1980. Since then, Zimbabwe has had many problems within its economy, government and society. The nations first and still reigning prime minister is Robert Mugabe, a man that has control of the so-called democratic political systems present in Zimbabwe since it gained independence.

The economy in Zimbabwe is one in crisis. Its involvement in the Congo war drained many millions of dollars from the already desperate economy. Aid from the IMF was later suspended as a result of budgetary goals not being met. This led to a huge rise in inflation. Mugabe’s land reform regime has caused huge economic upheaval as produce and therefore exports fell. This reform resulted in brutal murders and violence towards the white farmers for the land to be redistributed to blacks. During this turmoil, the economy has suffered as production of wheat and maize has greatly decreased. Food shortages mean that the produce from such farms are being used as food rather that for selling. During 2002, supplies from South Africa stopped and there was a severe shortage of fuel, maize meal, salt, cooking oil, bread, milk and sugar. Into 2003 there are severe shortages of cool drinks, chicken, beef and eggs. The government blames the food shortages on drought, however it must not be ignored that they have refused food aid offered by the US, under claims that it cannot be guaranteed to be GM free. They have also been blocking other imports of food by refusing import licenses. Is this really a sensible thing to do when there are 8 million people starving to death? Such food supplies remain in warehouses while people starve.

Mugabe’s time in power has been described as reign of terror and he has become famous for his violation of basic human rights as he continues to manipulate the future of the country. He has strict controls over not only the press, but also past and future elections that keep him in power. During the elections in 2002, there was a huge amount of corruption, including torturing those planning to vote Mugabe out of power. Peaceful human rights protestors in Zimbabwe were arrested and often brutally killed for speaking up against Mugabe. Is this a democratic society?

In looking at Aid and Development in Zimbabwe, it is not only important to look at the unfortunate events that have led to the country being in such crisis, but also to look at the actions of such influential people with in the political system. This is key to the survival of the 8 million Zimbabweans.

The World Bank

One form of aid, which has been given to Zimbabwe, is through the World Bank.  The World Bank was established in 1945 at the ‘Bretton Woods Conference’ in New Hampshire, USA.  Here America, Canada and the UK created the International Monetary Fund (IMF) and the International Fund for Reconstruction and Development (IFRD), the IFRD became more popularly known as the World Bank.  Since then more groups have joined the World Bank, as well as most of the Western world and the five associations are:

  • The International Bank for Reconstruction and Development
  • The International Development Association
  • The International Finance Association
  • The Multilateral Investment Guarantee Agency
  • The International Centre for Settlement of Investment Dispersal

Today the bank deals mainly with the developing world, although its original aims was focused on the reconstruction of Europe after the war.  The World Bank has provided a service where money is lent to a country to be used to improve an economic situation, deal with a disaster (both man-made and natural), or to use the funding where it is needed.  However, it is not as simple as it sounds, as there are many impacts and consequences of being involved with the World Bank as well as its obvious benefits.

The World Bank has aided 46 projects in Zimbabwe since it began giving aid.  They include Structural Adjustment Credit projects, conservation work, and social work, and therefore supply aid to a diverse range of people.

Due to a range of factors including poor governmental policies and unforeseen circumstances, such as the continuous bouts of devastating droughts since 1992, Zimbabwe has been in a state of desperate poverty.  Many officials have had debates as to whether improving countries economic status does actually wipe out poverty.  “Sustained economic growth is not by itself a guarantee of poverty reduction” (P. Cloke et al, 1999).  This aside when a country is in a state of poverty it is impossible for it to work its way into prosperity without some changes and form of investment.

  The World Bank has, along with other forms of aid, been of great use to Zimbabwe.    As well as lending money there have been many projects and programmes established by the World Bank which have invested money directly into the economy, the society and the environment.  Since 1980 there have been 29 operations in Zimbabwe, which are a mixture of concessional and non-concessional loans and credits.  The total amount, which has been given to Zimbabwe through these projects, has been $1,540.9 million.  This has allowed Zimbabwe to improve many areas of its economy, especially agriculture, which it would not have otherwise been able to do. The World Bank has also supported Zimbabwe with a selection of Structural Adjustment Programmes (SAPs), which has amounted to over $300 million.  Two components that make up the SAPs are:

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  • Stabilization (often short term, linked to IMF)
  • Structural Reform (reforms to change the economy, linked to World Bank)

These projects are formed so that they have an impact on all areas of poverty: these are schemes to improve agriculture, health, poverty, transport, energy, the private sector, urban areas and the environment.  

Not only has the bank lent money to Zimbabwe but it has also completed economic reports every three years which evaluate the changes occurring in the economy, and help Zimbabwe to learn how to improve their strategies and schemes in order to make the most ...

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