- A-Z Publications
- Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust
- Previous Issues
- Volume 1, Issue 1, 2010
Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust - Volume 1, Issue 1, 2010
Volume 1, Issue 1, 2010
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 1, pp 1 –15 (2010)More Less
This paper discusses the different options that the Zimbabwean economy can adopt in order to eventually re-introduce its local currency so as to benefit from the use of our own local currency. This is done through reviewing the cases of countries that de-dollarised their economies after having dollarised due to hyperinflation; a situation that Zimbabwe also went through. An exploration of the different options adopted in different countries was done and recommendations were drawn for the Zimbabwean economy. Two main options were found to have been adopted in other countries. The first one is a hands-on approach or an administrative approach which involves forcing back the local currency through prudential regulation aimed at building credibility of the introduced local currency without causing disintermediation. A review of literature reveals that only a few countries have managed to successfully de-dollarised their economies using this route. The second method adopted to de-dollarise is the hands-off approach or a market based de-dollarisation which is based on good macroeconomic performance and a successful disinflation programme. Most countries that adopted this approach have shown significant successes in de-dollarisation; notable success stories being that of Israel, Poland and Egypt. It is therefore against this background that we recommend that Zimbabwe follows a market based approach to de-dollarisation which becomes an endogenous outcome of sound macroeconomic performance. A review of Zimbabwe's macroeconomic framework also indicates that more needs to be achieved on major macroeconomic variables before de-dollarisation is considered an option. The paper also recommends no distinct time frame for de-dollarisation as this is dependent on macroeconomic performance and economic stability.
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 1, pp 16 –36 (2010)More Less
The study investigates the impact of Risk-Based Capital (RBC) regulation on bank capital. Building on past work and using a dynamic panel data model, and after controlling for internally generated capital target we found no evidence of the impact of capital regulation pressure on bank capital in Zimbabwean commercial banks over the period 2000-2006. Regulation pressure is insignificant even on undercapitalized banks. This is in contrast to existing evidence found by Ghosh et al (2003) in India or in UK (Ediz et al (1998) who found significant effects on undercapitalised banks. Capital regulation enforcement may be considered to be lax over the period due to lack of centralised bank regulatory and supervisory functions. Nonetheless, we found commercial banks to meet their capital needs by increasing both capital and portfolio risk levels.
Author Makova TendaiSource: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 1, pp 37 –56 (2010)More Less
This study investigates the impact of foreign direct investment (FDI) on economic growth in Zimbabwe for the period 1980-2006, using the ARDL bounds approach to cointegration. This approach is capable of testing the existence of a long-run relationship regardless of whether the underlying variables are I(0) or I(1). The results from the estimated long-run model indicate that FDI does not have an exogenous effect on economic growth, but its effect is manifested through trade openness. The contribution of human capital to economic growth in the long-run was, however, doubted.
Author Mavesere Ithiel MunyaradziSource: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 1, pp 57 –80 (2010)More Less
Many forests around the world are depleting at a fast rate. The reason for this is that they are undervalued. This study estimates the total economic value of Chirinda Forest, one of the largest natural forests in Zimbabwe. The study uses the Contingent Valuation Method and the econometric technique adopted was the logit model. The study found that forests have economic value that is underestimated in the Gross Domestic Product calculations. The total economic value for Chirinda Forest was estimated and showed that it runs into millions of United States dollars. This study shows that the contingent valuation method can be used to estimate the economic value of natural resources. The findings can be used to design policies that improve pricing schemes for forest areas and that such pricing schemes can lead to a more sustainable use of forests resulting in welfare improvement.
Zimbabwe : the 11th Province of South Africa - from one form of domination to another : a horse and rider relationshipSource: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 1, pp 81 –102 (2010)More Less
The study analyses the relationship between South Africa and Zimbabwe which dates back to early 1900. The research showed that these two countries have clued political and economic ties, with dependence of Zimbabwe on South Africa especially in the new millennium having been increased as a result of increased political turmoil and economic meltdown that Zimbabwe has been experiencing. All the existing evidence on the ground clearly show that Zimbabwe has been a de facto 11th Province of South Africa. The study identifies the four main pillars of Zimbabwe's dependence on South Africa which are political, trade, investment and employment. South African investments dominate and continue to grow in all sectors of the Zimbabwe economy especially mining, industry, agriculture, banking, retail sub-sectors; trade between the two countries is largely and increasingly in favour of South Africa; political developments in Zimbabwe both past and contemporary are largely guided by South Africa which is the main mediator of the political impasse bedeviling Zimbabwe's political situation and around three million Zimbabweans are currently living in South Africa, either as political or economic refuges. The study recommends that the dominance of South Africa over Zimbabwe should be gradually reduced in the areas of economic, labour, currency and political dimensions so that South Africa will respect Zimbabwe as an equal trading partner.
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 1, pp 103 –116 (2010)More Less
This study investigates the determinants of dividend policy of non-financial firms listed on the Zimbabwean Stock Exchange over the period 2001-2006. Specifically it examines the link between firm performance and the decision to pay dividends. Using a panel data methodology we have found evidence of firm size, growth opportunities and solvency to have a significant positive effect on dividend policy. Moreover the empirical results support the arguments of the agency theory of dividends payments since a negative and significant relationship was found between largest investor and the payout ratio. The policy implication arising from this study is that firms must strive to improve their performance and growth so that they will pay dividends to investors.
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 1, pp 117 –130 (2010)More Less
The article is an exegesis of the interface of liberation war history and democracy in the Zimbabwean polity. It draws corroborative evidence from an exclusively women authored historical narrative, Women of Resilience: The Voices of Women Ex-combatants (2000) published by Zimbabwe Women Writers (ZWW). Remarkably, the article observes that the exclusively women-authored anthology on liberation war history offers an inventory of a gender-based trajectory of memory, thus making gender one of the vital political resources in the nation's democratisation agenda as well as in contesting historical authoritarianism and reconfiguring historical and political discourse. The women's voices use the gender card to discursively destabilise and delegimate official memory reconstructions, particularly at a time when liberation war history in Zimbabwe is being brazenly and aggressively deployed as a political resource. Seen in this light, the article further lays it down that renditions of Zimbabwe's liberation war history and the meanings/interpretations of and contestations for democracy in Zimbabwe's violent politics of contested hegemony are inalienable, inextricable and even fungible. The various contesting categories in the nation use and interpret history for different purposes. The state, represented by the nationalist party, the Zimbabwe African People's Union Patriotic Front (ZANU PF), operationalises history as legitimating discourse and marshals it even through violence to extend regime life. On the other hand, the sidelined demographic categories contest narrow 'patriotic history' by engineering counter discursive historical accounts.