Friday, March 30, 2007

Zimbabwe in need of basic economic development

ZIMBABWE: Agriculture sector can recover, say analysts

Zimbabwe went from being one of the powerhouses of agriculture in the region to a collapsed and ruined shell. 2000 marked the year when policies targetting white farmers were enacted, and resulted in the current economic crisis. Since then, farmers and investment have moved to neighboring countries (Zambia, South Africa, and others) in search of better environment.

But despite the obvious culpability of a government that has traded immediate political support (land redistribution under the auspices of racial justice is a very populist theme) for the country's economic viability, the problem of Zimbabwe's newfound need for development efforts is very real.

Given that the country's agricultural sector was organized around large farm holdings and relatively capital-intesive practices, and the investment will be hard to materialize in the current political climate, what are the best strategies for development and poverty alleviation? As is always the case in the region, the question is closely tied to "food security" (which I find highly myopic, but more on that in the future"). Is there a way to leverage the new efforts into a better model that addresses "food security" without creating an economic dependent on one single terrible crop (such as maize?) Or is the expected demand for corn from the US likely to drive prices high enough to make this crop attractive as a poverty reducing tool?

Lots of good questions. I'm going to post a more pointed version for discussion over at the Development Talk forum.

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