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Poverty 1998 Report.Rtf 32 Preface In Zimbabwe today, stagnating economic growth, rapidly rising prices, a high rate of unemployment and the inequitable distribution of wealth and production resources are major preoccupations for policy makers. Many of these variables reinforce poverty. The 1998 and first National Human Development Report analyses policies and trends surrounding the perceived growing poverty problem in Zimbabwe. In so doing it rigorously scrutinizes policy and data at the various stages of Zimbabwe’s development. This analysis is balanced on the promise of the early successes scored after independence and extended to Zimbabwe’s entry into the global economy. After independence, the government’s policy fulcrum was “Growth with equity”. During this period demographic and health indicators improved rapidly. Life expectancy increased, infant, child and maternal mortality declined. The country undertook major investments in the rural water and sanitation sector and built new health centres. The provision of education increased dramatically. This early promise has not been sustained and the researchers use policy analyses and experiences in other countries to explain why this success was not sustainable. They indicate that the high public spending was financed by high taxation, international grants and borrowing. The expansion in provision of services in education and health also led to an increased civil service which had to be financed from public resources. The redistributive policies also entailed subsidising consumption through state enterprises (parastatals). In the labour market, minimum wages, unemployment benefits and job protection measures led to an unresponsive labour market and subsequent unemployment. Inevitably, the country faced resource constraints that led to the policy shifts towards a market led economic management and wealth redistributive mechanisms. The economy was effectively placed in the global context. This report analyses how Zimbabwe has been coping with the global economy. Exogenous factors including the recurrence of drought and low commodity prices have resulted in limited growth and poverty eradication under the Economic Structural Adjustment Programme (ESAP). The Zimbabwe Programme for Social and Economic Transformation (ZIMPREST) has been implemented only since 1997. Its success seems threatened by global factors mentioned above. The global economy has also imposed constraints on policy makers. In reducing expenditure, the prioritisation of social sectors has not been consistent. Data shows that expenditures in social sectors have declined in real terms and in some cases in nominal terms. Some reversals on social indicators such as infant, child and maternal mortality have been captured by social sector data. These reversals, however, have to be taken in the context of the demands on the health sector and impact of the HIV/AIDS epidemic in Zimbabwe. The report recommends means to move ahead and avert the apparent threat to Zimbabwe posed by increasing poverty. These recommendations are based on the premise that although the global economy has imposed constraints on policy makers, there are some issues in the domain of local policy makers that can be addressed. This is in line with a view to transform the country towards global competitiveness through investment in its people, and efficiency and effectiveness in its economic and social policy management. These recommendations include: • Providing a good environment for popular empowerment and participation in policy making by major stakeholders in the economic policies for Zimbabwe. • Improving the targeting of social expenditure to reach the poor, achieve equity and avoid waste inherent in many programmes implemented today. • Fighting corruption, which is at the centre of wastage and the inequitable distribution of resources and the wealth of the county. • Focusing on pre-requisites to achieve poverty eradication, including a land redistribution programme, implementing macroeconomic policies that allow the re-invigorating of the social sectors and focusing on employment creation. The Human Development Report has benefited from the vast data collected by the Poverty Assessment Study Survey (PASS) as well as other sources of data. The report has extended the analysis beyond the scope of PASS. In so doing the report has calculated Human Development Indices comparing provinces, rural and 33 urban areas. The report also extends analyses to show gender disparities in the distribution of poverty. Similar indices are constructed for the district level. In addition, the report compares Zimbabwe with other regional and developing countries on the level of its human development based on the human development index (HDI). The report also measures levels of deprivation by calculating the Human Poverty Index (GD!) has also been developed at the provincial level. The analysis done complements the information provided by the annual global Human Development Report and the SADC Regional Human Development Report which has also been compiled for the first time in 1998. At the World Summit for Social Development in Copenhagen, Denmark, in 1995 Heads of State and government from over 180 countries acknowledged the worsening problem of global poverty and pledged to take action combat it. The WSSD Declaration and Programme of Action endorsed and recognised the “Urgent need for national strategies to remove the structural barriers that prevent people from escaping poverty, with specific time-bound commitments to eradicate absolute poverty by a target date to be specified by each country in its national context”. For Zimbabwe the report has shown that poverty is both real and immediate. Stagnating economic growth, rapidly rising prices, and a high unemployment rate, which have worsened in the 1990s, as well as the highly skewed and inequitable distribution of resources are all contributing to increasing poverty levels with all the attend social problems. The institutional arrangements for the production of the Zimbabwe Human Development Report were comprehensive and involved consultations with various stake- holders and interest groups. Following consultations involving the government, UNDP and the University of Zimbabwe’s Institute of Development Studies (IDS) in 1995, it was agreed that IDS should produce the report on behalf of UNDP and the Poverty Reduction Forum. A policy advocacy grouping involving civil society, NGOs, policy makers, academics and donors. Zimbabwean researchers provided all research inputs. The independent researchers and the Poverty Reduction Forum have infused the broad based stakeholder approach to the report compilation. The production of the Report therefore tried to take into considerations the views of the various interest groups to come up with a report that would be national in character and that they could all adopt. The report does not purport to have all the answers to the poverty problem in Zimbabwe, we are confident that the involvement of the various stakeholders in its conceptualisation and production will enrich the information and analysis on human development and make the report an effective advocacy for anti-poverty strategies. We hope that the report will contribute to the debate on development and poverty eradication in Zimbabwe. Carlos Lopes Donald P. Chimanikire UNDP Resident Representative Acting Director (IDS) 34 Acknowledgements The production of Zimbabwe’s first Human Development Report benefited immensely from the contributions of numerous institutions and individuals some of whom we have not Acknowledged here. We are indebted to the following researchers for producing the background papers which formed the basis of the report. Jacob Kaliyati, IDS; Theresa Moyo, Economics Dept, UZ; Margaret Mabugu, Economics Dept, UZ; Bright Mombeshora, Ministry of Agriculture; Neddy Matshalaga, IDS; Victor Levine, ISCS; Charles herera, HRRC; Godfrey Kanyenze, ZCTU; Arnold Sibanda, IDS; Bruno Piotti, MoHCW; Naomi Wekwete, IDS; Jenipher Sibanda, ZBC; Pat Made, IPS; Monica Francis, IDS; Joseph Matowanyika, Z.E.R.O.; Ona Jirira, IDS and Pat Maramba, GOPAZ. We would also like to acknowledge the following members of the HDR Consultative Committee responsible for planning the report: Jacob Kaliyati, IDS (Chairman); Evelyn Zinanga, UNDP; Neddy Matshalaga, IDS; Monica Francis, IDS; Naomi ekwete, IDS; Patrick Chareka, Statistics Dept, UZ; Margaret Makuwaza, NEPC; Sydney Mhishi, MPSLSW and Tazivei Mungate, CSO. The report benefited immensely from the following sectoral reviewers: Rene Loewenson, TARSC; Clever Mumbengegwi, Economics Dept. UZ; Benson Zwizwai, IDS; Calvin Nhira, CASS; Lloyd Sachikonye, IDS; Simon Mpisa, UNICEF; Talent Nyathi, ACPDT; Rudo Gaidzanwa, Sociology Dept, UZ; Erica Keogh, Statistics Dept, UZ; Denis Nkala, UNDP and Evelyn Zinanga, UNDP. We are indebted for the cooperation and help rendered by the following institutions during the preparation of the Report: Central Statistical Office, the Reserve Bank of Zimbabwe, National Economic Planning Commission, Zimbabwe Congress of Trade Unions, Zimbabwe Women’s Resource Center Network, SAPES Trust, the University of Zimbabwe, UNIFEM and the National University of Science and Technology. Several government ministries shared their experience and information with the research team, in particular the ministries of Lands and Agriculture, Ministry of Education, Ministry of Health and Child Welfare, Ministry of Mines, Environment and Tourism, Ministry of Finance, Ministry of National Affairs
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