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- Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust
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- Volume 3, Issue 1, 2012
Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust - Volume 3, Issue 1, 2012
Volume 3, Issue 1, 2012
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp VI –VII (2012)More Less
Let me start by apologising for having missed your other sessions as a result of other commitments. However, I would like to thank you all - the presenters, discussants and other participants - for the dedication and commitment you demonstrated over the past two days to this Joint Research Seminar organised by the Ministry of Finance in collaboration with ZEPARU and University of Zimbabwe.
Author L.M. NyaguraSource: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp IV –V (2012)More Less
It is indeed my pleasure and singular honour to be here with you today. This is an auspicious occasion in that the University of Zimbabwe (UZ) is awakening to its proper role in society, that is, stimulating debate and dialogue among and between stakeholders, in the quest to search for truth and knowledge.
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp 1 –8 (2012)More Less
This paper attempts to assess the relationship between finance and economic growth in Zimbabwe following the adoption of the multiple-currency framework in February 2009. The paper makes use of the existing literature to evaluate the developments taking place in the financial sector and how they relate to economic growth. We conclude that the financial sector in Zimbabwe is inefficient owing to the huge interest rate spreads, the absence of the lender of last resort and the short term nature of loans extended to the private sector. The paper recommends, among other measures, the restoration of the lender of last resort function to the Reserve Bank of Zimbabwe, strengthening bank supervision and putting in place confidence building measures so as to promote a savings culture among the banking public.
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp 9 –50 (2012)More Less
The purpose of this article is to critically review the reserve bank of Zimbabwe charter supplemented with face to face interviews to assess the effects of hyperinflation and the financial system three years after it was brought to a halt. Central bank independence is characterised by insulation from influences and pressures emanating from public-elected government officials and a low inflation rate environment. A more independent central bank has a higher prominence for price stability and any other stated objective has the effect of reducing central bank independence. A central bank that is free from political pressure is able to assist with fiscal discipline through preventing the government from engaging in inflationary deficit spending, thus imposing austerity and stability on the economy.
Our findings were that the RBZ Act condones endless financing of government budget deficits. It lacks a primary objective of financial and price stability. As regards the survey of consumer finances, it is clearly demonstrated that the effects of the hyperinflation continues long after the event itself. Firms are under capitalised, households need to re-establish savings. Pensions and insurance policies are all wiped out. Incomes are low. However, the financial environment is much more stable and more conducive for long - term planning.
Author Richard MakotoSource: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp 51 –67 (2012)More Less
Following period of hyperinflation, Zimbabwe adopted full dollarisation without any coins in circulation in order to stabilize the economy. The study evaluates the macroeconomic effects of full dollarisation and the possibility of dedollarisation in Zimbabwe. We concluded that dollarisation has helped to stabilise the economy but these benefits come at the expense of loosing economic and policy independence. Most conditions of dedollarisation are yet to be satisfied that include sustainable current account balance, improvement in capacity utilization, and central bank reform. However if these conditions improved the country can go for a comprehensive full dedollarisation. Meanwhile, we recommend that the country must adopt market driven dedollarisation by first introducing coins less than ZW$1 backed by gold and diamonds, exchange on one to one to US$. Coins seemed to have an economic role at the moment as they will facilitate small transactions thus making them easily acceptable by the transacting public. Moreover, coins are less likely to be abused as government only raise less seigniorage revenue from them. After consolidating gains in economic performance, then broaden the use of ZW$ together with the US$. This option is preferred ahead of randisation (simple adoption of the rand) as this will persist loss of policy independence.
Author Tendai MakovaSource: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp 68 –77 (2012)More Less
This paper sought to investigate Zimbabwe's trade performance before and during dollarisation. A situational analysis was done for the key sectors which include Agriculture, Manufacturing and Mining. On the overall, the trade balance was seen to be widening largely as a result of high imports and poor export performance. The Agricultural sector performance was largely affected by erratic rainfall and poor preparation while low capacity utilisation and worn out machinery were a hindrance to good performance in the Manufacturing sector. Mining, on the other hand, registered improved performance but as a primary sector, export receipts could be higher if value-addition is prioritised. On the overall, tactical import substitution augmented with value addition could see the deficit eradicated and surpluses enjoyed.
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp 78 –95 (2012)More Less
Poverty levels have been increasing in Zimbabwe against a background of declining economic activity in the past decade. One of the poverty reduction tools that have been adopted is the provision of microfinance credit to the poor. While participation in this initiative has been quite significant, even in rural areas, its impact on poverty reduction is not very clear. The objective of this study was to examine whether household access to microfinance credit reduces rural poverty. The Treatment Effects Model, a variation of the Heckman Sample Selection Model was used to estimate the impact of access to microfinance on household per capita consumption, the proxy for poverty. Results from an outcome regression showed that access to microfinance has a positive effect on per capita household consumption (the poverty indicator). The study concludes that microfinance credit can be used as a tool for poverty reduction since increased consumption implies reduced poverty.
Source: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp 96 –125 (2012)More Less
This study set out to investigate the contribution of mining to the Zimbabwe economy. Its findings were quite instructive. Platinum has replaced tobacco as the top export revenue earner. Moreover, platinum has replaced gold as the top mineral export revenue earner. Platinum's share has increased to 47 per cent while gold has declined from 57 per cent to 25.5 percent of mineral exports.
The de-industrialisation of Zimbabwe over the past ten years has also taken its toll affecting the quantum of mining's contribution to the economy as value addition industries have been closed such as Zimbabwe Iron and Steel Company (ZISCO), Fidelity printers and refinery (which refined gold prior to export), Alaska copper refinery and Zimalloys to name only a few. Moreover the study also found that mining has had a positive social impact on the communities that it serves by improving the living standards of its workforce and communities in which they operate.
Household demand for improved water supply services in high density urban areas : the case of Mabvuku in HarareSource: Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust 3, pp 126 –140 (2012)More Less
Improving the quality, reliability and adequacy of water services is very important for both the rural and urban development of Zimbabwe. Most of the effort towards water improvements by both the government and non-governmental organizations has mainly been focusing of the supply side of water, thus ignoring the demand aspects. This paper attempts to incorporate demand side aspects in the water supply management system of the City of Harare. The paper analyses and estimates the willingness to pay for improved water supply services in Mabvuku, a high density area in Harare. The paper utilizes cross sectional data from a sample of 147 households collected using self administered questionnaires. A single dichotomous choice contingent valuation technique is used to elicit households' willingness to pay for improved water quality. Probit model estimation is used and the results from the regression show that the mean willingness to pay was US$8.58 per month. The factors affecting willingness to pay are household income, knowledge about on-going rehabilitation programmes, household size, age, previous infection and education. Perception about the current water quality and the bid price had a negative influence on willingness to pay for improved water supply services. The study recommends the establishment of a water development charge of not less than $8.58 per month, raising awareness about on-going water rehabilitation programs, a review of the school curriculum to include water sessions, among other measures.