Land reform and economic collapse.
Again suggesting a tight causal link to a complex relationship is misguided. There are of course many factors contributing to Zimbabwe’s economic woes. They include massive financial mismanagement (especially in the mid-2000s), rampant corruption (continuing), ‘sanctions’ (aka restrictive measures), withdrawal of international finance and credit lines, lack of business and investment confidence due to poorly articulated policy positions (notably around ‘indigenisation’), the collapse of commodity prices (for mineral exports), drought/climate change/El Nino, the strength of the US dollar, and of course the major restructuring of a core sector through land reform, with knock-on effects in employment and upstream and downstream industries. Choosing one or other these factors is clearly inadequate, and a more sophisticated analysis is needed. Of course the economy as whole hasn’t collapsed, and in some areas it’s booming. This is where, again, the new realities of a more diverse, informal economy need to be taken account of. This is simply not measured in the formal assessments of GDP, for example, yet represents at least 90% of the economy. Untaxed, unregulated and often based on limited returns and opportunities for accumulation, we should avoid glorifying the informal economy, but we should equally not ignore it – and it’s not all bad. For it is from such small-scale entrepreneurial activities – in agriculture and beyond – that many livelihoods are generated, and from which the wider more formalised economy can be revitalised. With a major restructuring expecting the future to be a replica of the past is the continuous mistake of too many commentators. As our work has shown there are huge potentials of new multiplier effects of a vibrant small-scale agriculture sector centred in the (mostly) A1 resettlement areas, linking to small towns across the country which are becoming new centres for economic activity and employment. The spatial pattern of the new economy is different, as are the actors and networks that drive it. Yet policy engagement remains limited. Due to ongoing ‘restrictive measures’, the western donors continue to focus efforts only on the communal areas, where the prospects of growth – and so wider economic linkages – are limited, as we have known for years. And no-one seems to be thinking about how to make the most of the complementarities of small, medium and large-scale agriculture (don’t forget there still is large-scale agriculture, including very substantial estates – such as sugar in the lowveld), and how agriculture across scales is linked to urban centres and market networks, at a district/regional level, as part of new planning and investment.
Land tenure security, class and patronage politics, food insecurity and linking agriculture to economic growth are all massively important policy priorities. I am the first to admit that there are major challenges. But we must ask the right questions if we are to seek a way forward, and this requires solid, research-based empirical information and a balanced assessment that is not distorted by ideological positions, anger and distress, wishful thinking or attempts to recreate pasts that probably never existed. I am often asked, whether I think land reform was good or bad; whether I am for against it. This is impossible to answer, and journalists get furious by the response (and so often misreport). It’s of course more complex. Land reform was undoubtedly necessary, a long overdue response to the violence and inequality of colonialism, but that does not mean it was implemented well, and with all the ideal outcomes. Our research shows this is not the case – far from it. 17 years on though, we do need a more mature, informed debate on policy options, and I hope this blog provides the forum for some of this.
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