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  • Price Controls and Shortages - Index of articles


  • Survey findings on the Zimbabwe economy and people's survival strategies (ZESS)
    Natasha Msonza, Kubatana.net
    April 08, 2008

    Summary
    The Mass Public Opinion Institute (MPOI) today presented to members of civil society findings for a research conducted on the Zimbabwe Economy and people's survival strategies. The research focuses on both macro and micro economic evaluations of society and the effects on and opinions of the latter concerning two outstanding government policies namely the Operation Reduce Prices (the price blitz) and the Indigenisation Policy.

    Findings indicate that a majority of Zimbabweans are pessimistic about the future based on the current economic and policy environment. Shortages of basic commodities and foodstuffs, galloping inflation, unemployment, deteriorating health system, poverty/destitution, transport blues and water/power cuts were among the most commonly cited 'serious' problems in Zimbabwe.

    Notably, none of the respondents cited the aspects of brain drain and skills flight as serious problems.

    A quarter of the respondents, both rural and urban blame the ZANU- PF government for the economic crisis. 22% put the blame on economic sanctions by western countries. Consequently, asked what they felt government should do to address the economic problems, a plurality felt that it should fight inflation. 15% called for improvement of relations with the West, 13% highlighted the need for government to create a 'conducive' environment for investment and at least 7% favored price controls.

    Survival strategies
    Zimbabwe's hyperinflationary environment has seen prices of goods and services increasing daily, eroding the income of many. Almost all the respondents have sometimes or always gone without food, cash, clean water, medical health care and transport. Research findings show that basically only a third of the population has not been severely affected by these problems. Interestingly, whilst unemployment is over 80%, Zimbabweans have adapted coping mechanisms for survival that vary from dealing in (illegal) black market forex and fuel dealings (falling under the bracket of "projects"), farming and remittances from friends and relatives. Some members of civil society highlighted the need for future research to do an in-depth analysis of how people actually manage to get through a typical day. A snap survey revealed that most people simply make do with no breakfast and lunch, and have supper when they get back home - commonly referred to as the 0-0-1 scenario.

    The price blitz
    Popular opinion among educated and less educated alike held that government should have at least consulted manufacturers before embarking on the price-slashing operation. Some respondents felt it was a noble principle implemented badly whilst a majority of urbanites felt it was a bad operation in principle. However, all concurred they preferred to have goods available, even if expensive rather than cheap and unavailable.

    Contributions from civil society said research should have also taken into consideration the effects of the price blitz on industry and the business community in general. It is important to know that beyond food shortages, some businesses down sized or closed down and lots of jobs were lost.

    MPOI will carry out focus-group discussions with key stakeholders in the business community during the course of the year in order to buffer this research.

    Indigenisation policy
    MPOI findings showed that a majority, especially the rural folk, professed ignorance towards this policy. However, after brief explanations, 52% of respondents felt it was a good policy while about 39% felt it should not be implemented at all, fearing problems such as those following the price blitz.

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