Beyond the Enclave sets out to unravel the contradiction of a country,
Zimbabwe, where a rich, diverse resource base co-exists with endemic
poverty. One reason lies in the colonial economy, which was predicated
on an ideology of white supremacy, creating an enclave formal economy
employing one-fifth of the labour force. Yet over three decades after
independence, the non-formal segment has become even more entrenched.
This book assesses Zimbabwe's economy through three main phases: 1980-90
when a strong social policy framework proved difficult to sustain due to
erratic growth, and 1991-96, when 'structural adjustment' demanded a
market-driven approach to development. The third phase is characterized
by crisis-management leading to policy inconsistencies and reversals.
Not surprisingly, such incoherence saw the economy descend into
hyperinflation and paralysis in 2007-2008, leading to the signing of the
Global Political Agreement in September 2008. In the absence of formal
dollarization, economic recovery after the adoption of the
multi-currency regime has remained fragile, leaving an estimated 70 per
cent of the population outside the banking system. This has further
entrenched uneven (enclave) growth as the economy remains locked in a
low-income poverty trap. There is a need to facilitate transition
towards formality to promote decent jobs. Furthermore, a strategic,
developmental role for the state in the economy is now widely recognized
as vital for development. Beyond the Enclave argues for a new approach
to development in Zimbabwe based on pro-poor and inclusive strategies,
which will contribute to the well-being of all of its citizens and wise
stewardship of its resources. It offers suggestions on policy
formulation, implementation, monitoring and evaluation in all sectors,
designed to promote inclusive growth and humane development.
