Moving Forward in Zimbabwe: Reducing Poverty

and Promoting Productivity

Admos Chimhowu

The Report

Analyses ultimate and penultimate causes of the crisis

Discusses the effects of the crisis on the economy and general welfare of citizens

Suggests ways of ensuring poverty focused reconstruction and development

The Report: Key Messages

Economic recovery should be poverty focused

Recovery should target areas that can deliver economic growth that translates directly into rapid improved welfare conditions to the majority rather than a minority

Evidence in some post-crisis states shows economic growth can occur without poverty reduction unless clear pathways are established on how overall growth translates into better welfare conditions for the poor.

Pathways for Poverty Focused Recovery

Poverty focused recovery should be agriculture-led

Historical link between agricultural growth and overal GDP growth means recovery in this sector determines what happens to other productive sectors.

A majority of Zimbabweans still reside in rural areas for most of their time and derive MOST of their livelihood off the land

Focusing on agriculture is therefore the most direct way to get these households out of poverty- rising rural incomes

Elements of Agriculture-led Strategy

Initial focus on smallholder farmers who now have access to about two thirds of agricultural land

Quick wins on food security from communal farmers and old resettlement areas- free inputs for three years for all

Restoring support systems

Links to markets

Elements of Agriculture-led Strategy

Focus on sorting out remaining issues of the post 2000 land reform

Secure tenure for the new farmers, audit to establish occupancy

Utilisation levels-taxation?

Compensation of former owners in ways that can enhance investment in other areas

Projectised development of A1

Recapitalisation of commercial agriculture via state assisted markets

Education

Restoration of appropriate support levels-recapitalisation of education

Enhance synergy between human capital formation and skills needed by the economy

Focus not only on those in education but also victims of the crisis or NEETS- not in education, employment or training

Health

Restoration of health system and planning

Establishing appropriate funding levels

Restoring services and human resource capacity

Recapitalization

Integration of programmes led by non-state actors into a central state-led system.

Environment

Changes in land use imply need for

Environmental Audit to establish the state of the environment in Zimbabwe

Revitalisation of state institutions at national and sub-national level

Enhanced engagement with emerging international discourses especially on climate change

Social Protection

Need to come up with comprehensive policy on social protection

Continued focus on OVCs but shift from food packs to conditional cash transfers- health and education

Introduce work relief programmes when there is state institutional capacity to implement