ZIMBABWE

COUNTRY OVERVIEW

LOCATION AND SIZE.

The Republic of Zimbabwe is a landlocked country in southern Africa, covering an area of 390,757 square kilometers (150,872 square miles), of which land occupies 386,670 square kilometers (1,929 square miles), and water occupies 3,910 square kilometers (1,509 square miles). Zimbabwe is bounded on the north and northwest by Zambia (797 kilometers), southwest by Botswana (813 kilometers), Mozambique (1,231 kilometers) on the east, South Africa (225 kilometers) on the south, and Namibia's Caprivi Strip touches its western border at the intersection with Zambia. The country is slightly larger than Montana.

Zimbabwe sits astride the high plateaus between the Zambezi and Limpopo rivers, its main drainage systems. Much of the country is elevated, 21 percent being more than 1,200 meters (3,937 feet) above sea level. The topography consists of 4 relief regions. The high veld (an open, grassy expanse) rises above 1,200 meters and extends across the country from the northeast narrowing towards the southwest. The middle veld, lying between 900 and 1,200 meters (2,953 and 3,937 feet) above sea level, flanks the high-veld, mostly extending towards the northwest. The low veld stands below 900 meters (2,953 feet) and occupies the Zambezi basin in the north and the more extensive Limpopo and Sabi-Lundi basins in the south and southeast. The eastern highlands have a distinctive mountainous character, rising above 1,800 meters (5,906 feet), and include Mount Inyangani (sometimes called simply Inyangani), standing at 2,592 meters (8,504 feet) above sea level.

POPULATION.

The census of 1992 indicated a population of 10.41 million, and by mid-2000 the estimate was 11.34 million. The population has been growing at a rate estimated at 2.6 percent a year from 1990 to date, and this implies a fertility rate of 3.8 children per woman. The population is youthful, with only 3.5 percent over the age of 65, 39.6 percent in the 0 to 14 age group, and 56.8 percent in the 15 to 64 age group.

The country's population is diverse and was estimated in the mid-1980s to include—besides the indigenous people—some 223,000 people of European descent as well as 37,000 Asians and people of mixed ethnic backgrounds—all of them the legacy of the colonial era. The indigenous people accounted for more than 98 percent of the population in the mid-1997 estimates, and were comprised mostly of 2 broad ethnic or linguistic groups: the Ndebele and Shona. The Shona comprised 71 percent and Ndebele 16 percent of the population in 1997. There are, in addition, several other minor ethnic groups such as the Hlengwe, Sena, Sotho, Tonga, and Venda who constituted the other 11 percent. English, Shona, and Sindebele are the official languages universally taught in schools.

Urban growth has been rapid in recent years. Over the 1982-92 period, the population of Harare, the capital, is reported to have almost doubled from 656,000 to 1,189,103, while that of Bulawayo, the second-largest city, increased from 413,800 to 621,742 over the same period. The urban poor, operating within the highly competitive informal sector are now a large and increasing part of the urban social structure.

OVERVIEW OF ECONOMY

Since independence, Zimbabwe's primary goal has been redressing the socio-economic imbalances and restructuring the economy while maintaining growth and avoiding alienating its white population, whose skills are of vital importance to its economy. Unlike many countries in post-independent sub-Saharan Africa, Zimbabwe did not tread the nationalization path, rather choosing to purchase shares in various enterprises.

Zimbabwe has a relatively diversified economy with good infrastructure, strong manufacturing and agricultural sectors, a vigorous financial services sector, and extensive mining. Agriculture, which in 1997 contributed 28 percent of gross domestic product (GDP), is the mainstay of the economy and a major determining factor in its growth. It is diversified and well-developed in terms of food production, cash crops, and livestock. Its growth, however, has been erratic since independence in 1980. Periods of rapid economic growth have been interrupted by agricultural slumps caused largely by drought in 1992, when about 80 percent of the maize crop and an estimated 1.7 million cattle were lost, and another drought in 1995.

Zimbabwe's mining sector is diversified, currently producing over 40 different minerals. These include gold, platinum, nickel, coal, copper, silver, emeralds, graphite, granite, cobalt, quartz, kaolin, and mica. Gold is the primary source of revenue in the mining sector.

Zimbabwe produces a wide variety of manufactured goods for both local and export markets. Manufacturing is centered in the 2 major urban centers, Harare and Bulawayo. Developed within a protectionist policy, the sector enjoyed certain tariff barriers in the period from 1965 to 1979. It faced stiff competition, mostly from South Africa, after 1990 when the barriers were progressively removed.

One of the most pressing issues affecting the Zimbabwean economy concerns land redistribution. Due to costs and delays in sourcing financing, Zimbabwe has been behind schedule in the redistribution of land to landless rural families as promised in the war of liberation. This culminated in the 1999-2000 land crisis in the runup to the 2000 elections, when war veterans began occupying white-owned farms. This precipitated a crisis in the farming sector that is yet to be resolved.

The export position has been generally strong, with trade surpluses recorded in most years except during the droughts of 1992 and 1995. Government policy aims to encourage foreign investment and expand exports—a policy it has pursued since the 1990 structural adjustment programs (SAP). However, export-led growth, the reduction of government budget deficits, and low levels of inflation have proved to be elusive goals. Real GDP grew at an average annual rate of 3.6 percent between 1980 and 1990, but halved to 1.8 percent annually between 1990 and 1997. By 1995, GDP was shrinking at-0.7 percent, but by 1996 the economy was growing again at a 7.6 percent growth rate. But in 2000 and 2001, the output of the economy is thought to have contracted once more, and living standards have fallen markedly. Inflation was high through the 1990s, averaging 22.4 percent annually between 1990 and 1997, ranging from a peak of 42 percent in 1992 to a low of 19 percent in 1997. In 1999, with the political crisis, inflation had risen to 166 percent a year and currently continues to be very high.

POLITICS, GOVERNMENT, AND TAXATION

Zimbabwe is a former British colony; it was known as Southern Rhodesia during British rule, and was established in 1890. Gold discoveries sparked an influx of white farmers, mostly from Britain and South Africa. The most powerful of the gold seekers was Cecil Rhodes (after whom Rhodesia was named), the eccentric owner of the De Beers mining company, which he had bought for its diamond concessions in Africa. The massive migration of white Europeans and land acquisition by these groups produced economic and political consequences still reverberating in the country more than a century later.

In 1953, Southern Rhodesia was united by the British government with Northern Rhodesia (present-day Zambia) and Nyasaland (present-day Malawi) into a Central African Federation, against opposition from Africans in all 3 regions. Due to the strength of African opposition in Northern Rhodesia and Nyasaland, the Federation was disbanded in 1963. Whites in Southern Rhodesia formed the Rhodesia Front (RF), dedicated to upholding white rule and demanding full independence from the United Kingdom and the retention of the existing minority-rule constitution. Prime Minister Ian Smith introduced a Uni-lateral Declaration of Independence (UDI) in November 1965 and renamed the territory "Rhodesia."

African nationalist opposition had split in 1963 into 2 resistance groups: the Zimbabwe African People's Union (ZAPU), led by Joshua Nkomo, and the breakaway Zimbabwe African National Union (ZANU), led by Rev. Ndabaningi Sithole and later Robert Mugabe. Repressive measures by the Smith government galvanized ZAPU and ZANU into a guerilla (non-conventional, stealthy) war to overthrow it. ZAPU's operations, based in Zambia and backed by the Soviet Union, were mainly confined to majority Ndebele areas. ZANU, on the other hand, linked with the People's Republic of China and a guerilla group fighting the Portuguese in Mozambique. They concentrated on infiltration and rural mobilization in Shona-speaking areas in the northeast, and later in eastern and central areas of the country.

From 1976, a common struggle was waged under the banner of the Patriotic Front (PF), an uneasy alliance of ZAPU and ZANU, backed by neighboring African states. This struggle, coupled with international economic sanctions (with the exception of South Africa), led to declining white morale, forcing the Smith regime into the 1979 "Internal Settlement"—a multi-racial government under the leadership of Bishop Abel Muzorewa, a Methodist minister and black nationalist. This paved the way for all parties to the conflict to participate in talks which led to the February 1980 elections and the emergence of the independent state of Zimbabwe on 18 April 1980.

In the elections, Mugabe's ZANU-PF won 57 of the 80 "common-roll" (reserved for black Africans) seats in the house, receiving 63 percent of the vote. Nkomo's ZAPU-PF won 20 and Bishop Muzorewa's United African National Council (UANC) won 3 seats. Mugabe's ZANU has retained power in Zimbabwe ever since.

The constitution of the Republic of Zimbabwe took effect at independence. Amendments to the constitution must have the approval of two-thirds of the members of the House of Assembly, the country's unicameral (single chamber) parliament. The executive president (Mugabe) is both head of state and head of the government, as is the U.S. president. The House of Assembly has 150 members, of whom 120 are directly elected by universal adult suffrage, 12 are nominated by the president, 10 are traditional chiefs, and 8 are provincial governors.

In 1997, government expenditure was 36 percent of GDP, which is high by African standards. Government revenue was 31 percent of GDP, and the budget deficit was 5.1 percent of GDP, significantly above the International Monetary Fund (IMF) guideline of 3 percent. Subsequently, the deficit has been substantially above this level, the money supply has expanded rapidly, and the rate of inflation has accelerated.

Corporate tax rates are moderate at 37.5 percent, although the government discriminates against foreign corporations by imposing an additional 8.4 percent. Most government revenue is raised from taxes on income, profits, and capital gains (45 percent). Taxes on goods and services generated 26 percent of revenue, trade taxes on exports and imports garnered 19 percent, and other nontax income (mainly licenses and surpluses of state-owned enterprises) accounted for 9 percent.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Zimbabwe is a landlocked country with a well-developed road network that was comprised in 1996 of 18,338 kilometers (11,395 miles) of roads, of which 8,692 (5,401 miles) are paved. The closest seaport is Beira in Mozambique.

Zimbabwe has a direct railway link with Zambia, which connects it to the Tanzanian port of Dar es Salaam through the Tazara railway. The railway system also connects Zimbabwe to the Mozambican ports of Beira and Maputo as well as 2 South African ports. It comprises 2,759 kilometers (1,714 miles) of track, of which 313 kilometers (194 miles) is electrified. Another link is planned between Beitbridge and Bulawayo, the second largest city in Zimbabwe. The National Railways of Zimbabwe (NRZ), which operates the rail service, is under reform in preparation for privatization.

Zimbabwe has 2 state-controlled airlines—the passenger carrier Air Zimbabwe and freight carrier Affretair—which are experiencing financial difficulties resulting from poor management and political interference.This has enabled a private company, Zimbabwe Express Airlines, to emerge and capture a substantial share of the market. A new international airport is being built at Harare.

Zimbabwe Electricity Supply Authority (ZESA) has the sole responsibility for power generation and distribution. The search for national energy self-sufficiency in the early 1980s led to an emphasis on coal and other thermoelectric projects (78 percent of supply) and the hydroelectric power from the Kariba dam (22 percent). Although the second stage of the Hwange thermal power station, commissioned in 1987, raised the total capacity to 2,071 megawatts (mw), supply has failed to keep up with demand, leading to imports from Mozambique and South Africa. All oil and gas is imported. A pipeline from Port Beira in Mozambique to Mutare which was built before the 1965 declaration of independence did not become operational until 1982, and was extended to Harare only in 1993. Ethanol, produced since 1980 from sugarcane, is blended with gasoline for domestic sale. Imports of fuel are monopolized by the National Oil Corporation of Zimbabwe (Noczim), which has been mired in scandals and run at a loss for several years, partly due to lack of authority to raise prices in line with the depreciation of the Zimbabwe dollar.

Zimbabwe's domestic communication system consists of microwave radio relay links, land lines, radiotelephone communication stations, fixed wireless local loop installations, and a substantial mobile cellular phone network. Internet connection is available in Harare and planned for all major towns and for some of the smaller ones. International communication is through satellite earth stations including 2 Intelsat and 2 international digital gateway exchanges (in Harare and Gweru).

Zimbabwe's telephone system was once one of the best in Africa, but now suffers from poor maintenance with more than 100,000 outstanding requests for connection despite an equally large number of installed but unused lines. The Posts and Telecommunications Corporation

(PTC), despite investing heavily in the digitization of its network using fiber-optic technology, has failed to satisfy demand. By 1997 there were 212,000 telephone lines in use. In addition, there are about 20,000 fixed telephones with wireless local loop connections. There were 70,000 mobile cellular phones in 1999. The PTC has since lost its monopoly rights to cellular phone operators such as Eocene, which won the right to establish a cellular phone network in 1997 after more than 4 years of legal battles.

Zimbabwe has a well-diversified media. The press is relatively free but dominated by the state-controlled Zimbabwe Newspapers, which operates 2 dailies, the Herald and Bulawayo Chronicles, as well as their sister papers, the Sunday Mail and the Sunday News. Since 1999, when the Daily News, backed by investors from the United Kingdom and South Africa, was launched, the market share of Zimbabwe Newspapers has been significantly reduced. Other independent papers include weeklies such as the Financial Gazette, the Zimbabwe Independent, and the Standard, which mainly serve as opposition voices and are highly critical of the government. A number of monthlies including Motto, Horizon, and Parade are estimated to have a readership approaching 1 million each.

Radio and television are run by the state-owned Zimbabwe Broadcasting Corporation (ZBC), but variety is provided by channels from South Africa. In 1998, however, journalists critical of the government were removed and the state-controlled media have since largely provided government propaganda. In the wake of the outbreak of the land-reform crisis, which the independent media blamed on the government for instigating in the run-up to the 2000 elections, the government has announced plans to curtail the rights of the independent press.

ECONOMIC SECTORS

Zimbabwe's economy is well-developed, consisting of diversified sectors such as manufacturing, commercial farming, productive small-scale family farming, and exploitation of various mineral resources. Agriculture generated about 88 percent of GDP in 1997, one-third of which came from communal farmers, and mining was about 13 percent of GDP. These 2 sectors generally determine the state of health of the economy because of their impact on export revenue. Agriculture alone employs about 66 percent of the total labor force. Tobacco and gold, followed by tourism receipts, dominate export earnings. Although manufacturing's relative importance has declined over the years, it is still a significant sector, contributing about 18 percent of GDP in 1998. The services sector has risen in significance, contributing more than 58 percent of GDP in 1998, mostly as a result of increased spending on education and health, and an expansion of tourism in the 1980s. The latest figures the CIA World Factbook released were for 1997 and estimated agriculture at 28 percent, industry at 32 percent, and services at 40 percent of GDP.

AGRICULTURE

Zimbabwe has a well-developed and diversified agricultural sector, producing food crops, cash crops, and livestock. Although agriculture accounted for only 28 percent of GDP in 1998, it engaged about 66 percent of the labor force in 1996. Some 27 percent of formal sector employment was in the agriculture sector in 1997. Agriculture's share of GDP has been fluctuating from 17 percent in 1985, 12 percent in 1990, 14 percent in 1996, and 28 percent in 1998, depending on the impact of drought and the level world prices for export crops.

Zimbabwe produces much of its own food, except in years where drought affects maize and wheat production. The staple food crop is maize, and other cereal crops include barley, millet, sorghum, and wheat. In spite of the high concentration of arable farmland in the commercial sector, smallholder production share of agricultural output rose from 9 percent in 1983 to 25 percent in 1988, and 50 percent in 1990. Tobacco is the largest export crop (23 percent of merchandise exports in 1997) and Zimbabwe is among the world's biggest exporters. The other main exports are sugar and cotton and in years of surplus maize is exported. Horticulture is growing rapidly and Zimbabwe is now the world's third-largest exporter of roses.

Zimbabwe is one of a few sub-Saharan African countries allowed to export beef to the European Union. Exports began in 1985; however, Zimbabwe could not keep up with its quota, and exports have dwindled over the years. Total exports were 9,500 metric tons in 1996. Sheep, goats, pigs, and poultry are also extensively farmed. About half the country's timber is produced by the Forestry Commission. Rough-sawn timber is exported to Botswana and South Africa. High quality timber is exported mainly to the United Kingdom. In 1994, Zimbabwe's forestry sector produced 29,000 cubic meters of non-coniferous sawn wood, 3,000 cubic meters of non-coniferous sawn logs and veneer logs, and 1.8 million cubic meters of industrial round wood.

INDUSTRY

In 1998, Zimbabwe was the world's thirteenth-largest producer of gold, which is the country's biggest mineral export. Mining contributed 13 percent of GDP in 1997 and generated US$900 million of export revenue in 1995 (amounting to 45 percent of total value of exports), up from US$623 million in the previous year. About 90 percent of mining production is exported. In 1997, gold constituted 14 percent of the value of exports, followed by ferro-alloys at 7 percent, then nickel, and asbestos. Coal is mined for domestic power generation as well as for export, iron ore to supply the steel industry, and phosphate rock for fertilizer production.

Mineral deposits are dispersed throughout the country, but it is the Great Dyke, which runs for hundreds of kilometers from northeast to southwest, that contains the most extensive concentration of mineral deposits. In the 1980s, the state tried unsuccessfully to wrest control of mining from the main mining companies. Anglo-American Corporation controlled nickel and chrome mining, Rio Tinto Zimbabwe mined nickel and gold, Turner and Newall concentrated on asbestos, Lonrho on gold and copper, and Ashanti Goldfields mined gold. In an effort to control transfer pricing, all minerals except gold are required to be marketed through the state's Zimbabwe Minerals Marketing Corporation, but this organization's future has recently been questioned.

Zimbabwe has one of the largest, most diversified, and integrated manufacturing sectors in sub-Saharan Africa, partly due to import substitution policies implemented after the 1965 declaration of independence. The Zimbabwe Steel Corporation (Zisco) is the only full-fledged sub-Saharan Africa steel producer outside South Africa, producing from its Kwekwe plant alone more than 700,000 metric tons annually. Other major industries include Zimbabwe Alloys, which produces ferro-chrome for export; a number of heavy engineering companies working for the mining industry and railways; Dunlop Zimbabwe which makes tires and tubes; car and truck assembly plants; a large pulp and paper firm; and several plastics companies. The removal of protective measures under the 1990 Enhanced Structural Adjustment Program (ESAP) has caused manufacturing's output to contract and its share of GDP to decline to about 18 percent in 1997 from around 25 percent in the 1970s. However, about 40 percent of Zimbabwe's exports are classified as manufactured products, and the recent decline in the value of the Zimbabwe dollar will serve to make Zimbabwean manufactures more competitive at home and overseas.

Although several new buildings have been erected in Harare in recent years, the construction industry has been depressed since the boom of the early 1970s, and its share of GDP has fallen from 5 percent in the 1970s to 3 percent in 1997 as a result of a virtual freeze on large-scale developments. On the other hand, employment in the sector has increased by more than 50 percent to about 80,000 as construction of low-cost, labor-intensive dwellings for Africans has expanded.

SERVICES

The central bank, the Reserve Bank of Zimbabwe (RBZ), acts as banker to the government, issues currency and government loans, controls foreign reserves, serves as lender of last resort to commercial banks, and handles revenue from gold exports. The RBZ is also responsible for banking sector supervision, although it lacks the necessary legislative framework and statutory power to monitor banks adequately. The Ministry of Finance is responsible for issuing banking licenses.

Zimbabwe has a growing tourism industry, and hunting safaris in particular have expanded in recent years. The government favors upmarket tourism, especially ecotourism and safari holidays. There are a number of world-class hotels in the country, including the historic Victoria Falls Hotel. The total number of visitors has grown at an annual rate of 20 percent since 1990 when there were about 635,000, to over 2 million visitors in 1998. Tourism generated an estimated US$125 million in 1998, making it the third-largest foreign exchange earner after tobacco and gold. But the continuing political unrest and violence has hurt the tourism industry, with the number of overseas visitors plunging 35 percent during the first 6 months of 2000 compared to the same period in 1999.

The distribution sector features a large number of South African retail chains. As a result of import substitution policies, these companies rely on domestic suppliers of processed food, clothing, furniture, and light consumer goods.

INTERNATIONAL TRADE

Exports of goods and services grew by about 6.3 percent a year between 1965 and 1997, and manufactured exports accounted for more than 32 percent of total merchandise exports in 1997. Zimbabwe's export partners vary significantly from year to year. In 1996, the most important were South Africa, Botswana, Lesotho, and Swaziland (38 percent of imports and 12 percent of exports)—all members of the Southern African Customs Union. The United Kingdom was also an important trading partner (9 percent of imports and 12 percent of exports), as was Japan (5 percent of imports and 6 percent of exports), Germany (6 percent of imports), and the United States (5 percent of imports). Zimbabwe's membership in the Common Market for Eastern and Southern Africa (COMESA) has, in theory, provided access to new markets in regional trade. In practice, however, Zimbabwean exporters have been somewhat disappointed due to constraints in foreign exchange availability with the potential partners. The historic change of government in South Africa has enabled investment and trade between

the 2 countries, but the overall result has been that South Africa has taken an even larger share of Zimbabwe's domestic market following the recent increase in trade liberalization.

MONEY

Before 1994, the value of the Zimbabwe dollar was determined by the Reserve Bank of Zimbabwe (RBZ) on the basis of a trade-weighted basket of foreign currencies. Although there were large devaluations in 1982, 1991, and 1993, high domestic inflation frequently caused monthly adjustments of 1 to 2 percent. As part of the 1990 Enhanced Structural Adjustment Program (ESAP), the Zimbabwe dollar was floated, allowing companies to retain export earnings in foreign currencies, and restrictions were removed on holding the currency abroad and on investing on the Zimbabwe stock exchange. However, the RBZ reserves the right to intervene in the foreign exchange market (buying the Zimbabwe dollar when its price begins to fall, and selling when its price rises) to maintain a stable exchange rate. However, the price of the Zimbabwe dollar has been subject to a falling trend, and the RBZ has been unable to stabilize the exchange rate because it has lacked the foreign exchange to make purchases. The Zimbabwe dollar has lost considerable ground against the U.S. dollar since independence, depreciating from an average rate of Z__BODY__.64=US__BODY__ in 1980 to Z$38.15=US__BODY__ in 1999. This depreciation has worsened since November 1997, owing to economic and political instability that prompted a run on the currency, depreciating it to Z$55.05=US__BODY__ by mid-2001.

POVERTY AND WEALTH

It was estimated in 1991 that 14 percent of the population was below the U.S. dollar-a-day poverty line (this line is based on the income required to provide the absolute minimum nutrition, clothing, and shelter). This means that 16 percent of children under age 5 are mal-nourished (the figure is 1 percent for the United States) and life expectancy is 53 years (in the United States it is

77 years). Estimates in 1999 suggest that the deteriorating economic conditions, particularly the disruption of agriculture by the violent occupation of farms by landless Zimbabweans, has increased the dollar-a-day poverty level to 60 percent of the population. Most of those in poverty are in the rural areas, relying on small-scale agriculture for their livelihoods. They suffer because of poor land, inadequate rainfall, and insufficient income to purchase good seeds, fertilizer, or farm machinery. With the economic deterioration, increasing numbers of urban dwellers are finding themselves in poverty. There is a huge income distribution disparity. In 1990, the poorest 10 percent of the population received 1.8 percent of total income, while the richest 10 percent received 46.9 percent.

The national social security authority had about 840,000 employed persons registered with it in 1995. Subsistence farmers and informally employed people do not participate in pension, sickness benefits, or other formal welfare schemes, but rely on traditional community support structures.

WORKING CONDITIONS

Since independence in 1980, the government has tried unsuccessfully to reduce the wide income gap between the rich and poor in Zimbabwe. The Minimum Wage Act of 1980 established a minimum wage of Z$85 (US$133) per month for workers who qualified under the Industrial Conciliation Act, and Z$67 (US$105) for others in industry. Minimum wages were set at Z$58 (US$91) per month for mine workers and Z$30 (US$47) per month for agricultural and domestic workers. In 1982, minimum wages were again raised.

Although minimum wages were subsequently raised several times after independence and real wages rose significantly between 1980 and 1982, they have fallen since. Attempts were made in the 1980s to introduce wage controls, but these were widely circumvented by private industry. The landscape has since changed and collective bargaining now appears to be the norm, although tight regulation of the right to strike action has provoked workers to engage in wildcat (a strike not officially sanctioned by a union) actions. Since 1997, however, the Zimbabwe Congress of Trade Unions (ZCTU) has gained prominence, organizing successful strikes against new taxes and levies in 1997-98 and pushing for an increase in the minimum salary to Z$2,000 per month (about US$36 at current exchange rates).

Growth in employment was considerably slower than the population's increase after independence. In the late 1980s, about 40,000 jobs a year were being created, enough to accommodate only 20 percent of young people who had left school to find work. The percentage of total population formally employed fell from 18 percent in 1965 to 11 percent in 1997. There have also been major

sectoral shifts in employment since independence, with employment rising particularly rapidly in the education, health, and other services, while the number of people working in manufacturing has declined.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1890. Southern Rhodesia becomes a British colony.

1953. Britain unites Southern Rhodesia with Northern Rhodesia (present-day Zambia) and Nyasaland (presentday Malawi) into a Central African Federation (CAF), which is opposed by Africans in all 3 territories.

1962. Whites in Southern Rhodesia hostile to British softening of stance towards CAF vote into office the newly formed Rhodesian Front (RF), dedicated to upholding white rule and demanding full independence from the United Kingdom.

1963. British government recognizes African hostility to federation and concedes independence of territories, breaking up the federation. African Nationalist opposition splits into the Zimbabwe African People's Union (ZAPU), led by Joshua Nkomo, and the breakaway Zimbabwe African National Union (ZANU), led by the Rev. Ndabaningi Sithole and subsequently by Robert Mugabe.

1965. Ian Smith is appointed leader of the RF and prime minister of Southern Rhodesia. Smith implements a Unilateral Declaration of Independence (UDI), renaming the country "Rhodesia."

1976. African opposition launches combined struggle against the Smith regime, backed by neighboring African states (excluding South Africa).

1979. Smith regime develops an internal settlement under which the black-led government of Bishop Abel Muzorewa is instituted.

1980. Democratic elections give Mugabe's ZANU-PF a majority in the house, Nkomo's ZAPU-PF wins 20 seats, and Muzorewa's United African National Congress (UANC) wins 3 seats.

1982. All ZAPU-PF members of cabinet dismissed from government. Dissidents from ZAPU's former guerrilla army and others perpetrate numerous indiscriminate acts of violence.

1984. Army unit is accused of atrocities against civilians.

1985. The RF is reconstituted as Conservative Alliance of Zimbabwe (CAZ). First general elections are held in the summer.

1987. The reservation of 20 white seats in Parliament and 10 in the Senate is abolished.

1988. Mugabe and Nkomo sign agreement to merge ZANU-PF and ZAPU-PF into ZANU-PF with a commitment to establish a 1-party state with a Marxist-Leninist doctrine. Open public and parliamentary criticism of corrupt government officials mounts as unemployment and inflation rise. Plans to establish a 1-party state result in student protests.

1988. House votes to abolish upper chamber of parliament, the Senate. The single chamber is enlarged from 100 to 150 seats.

1990. ZANU-PF Central Committee refuses to endorse a 1-party state.

1991. The Enhanced Structural Adjustment Program (ESAP) is adopted. The constitution is amended to restore corporal and capital punishment and deny recourse to the courts in cases of seizure of land by the government, amidst fierce criticism from the judiciary and human rights campaigners.

1992. In May, a non-party Forum for Democratic Reform (FDR), led by former Chief Justice Enoch Dumb-utshena and supported by some prominent Zimbabweans, is formed. Four parties form an informal alliance, the United Front (UF), with the aim of defeating the government at the 1995 general elections.

1993. In February, divisions appear in the UF alliance.

1994. Bishop Muzorewa returns to active politics and merges UANC with the Zimbabwe Unity Movement (ZUM). Later in the year, he founds a new opposition grouping, the United Parties (UP). Economic recession leads to widespread industrial unrest.

1995. The government wins the April general election, despite widespread discontent.

1996. Mugabe is returned to office with 93 percent of the votes cast in an election with a 32 percent voter turnout.

1997. Corruption becomes a prominent issue with allegations of official contracts being unfairly tendered and embezzlement of public resources to construct private homes for civil servants, ministers, and Mugabe's wife. In October, Mugabe announces acceleration of the national land resettlement program in an attempt to revive his declining popularity.

1998. Unprecedented food riots erupt in most of the country's urban areas in response to rises in the price of the staple food, maize meal. In April, government officials are reported to have misused funds intended to assist veterans of the struggle for independence. A new party, Zimbabwe Union of Democrats (ZUD), is launched with Margaret Dongo as leader. The opposition protests the government's decision to send troops to the Democratic Republic of the Congo.

1999. In July Mugabe acknowledges existence of corruption within the government. Joshua Nkomo dies at age 81. In September, Morgan Tsvangarai joins other prominent citizens in establishing the Movement for Democratic Change. Tsvangarai calls for electoral reform prior to 2000 parliamentary elections. World Bank and other donors suspend financial assistance.

2000. After delays in implementing a land reform program with compensation for white farmers, the government encourages war veterans to occupy farms, and considerable violence erupts. Elections are contested in which ZANU-PF wins 62 seats, the Movement for Democratic Change 57 seats, and ZANU-Ndonga 1 seat.

FUTURE TRENDS

Zimbabwe faces a wide variety of political and economic problems. The agricultural sector has been dealt a severe blow through the land occupation by war veterans frustrated by 20 years of delay in receiving land allotments for their military service. However, the government-sanctioned violent takeover of many white-owned farms has all but destroyed Mugabe's international reputation along with Zimbabwe's agricultural output. Thus, it is unlikely there will be a resolution to the conflict while Mugabe remains in power, particularly since the international community will withold funds for an orderly transfer with compensation for the white farmers until he is gone. For now, the economic prospect is bleak, with a steady attrition of white farmers and falling agricultural output, and exports provoking crises as food and fuel fall into short supply. Tourism has virtually ceased, incomes are plummeting, and inflation is likely to continue at hyper-inflation levels. With a change in government, there will be a challenge in consolidating earlier progress in developing a market-oriented economy. Support from the IMF will resume once the government shows some determination in meeting budgetary targets.

DEPENDENCIES

Zimbabwe has no territories or colonies.

BIBLIOGRAPHY

Economist Intelligence Unit. Country Profile: Zimbabwe. London: Economist Intelligence Unit, 2001.

Embassy of Zimbabwe.<http://www.zimembassy-usa.org>.Accessed October 2001.

Green, Richard, editor. Commonwealth Yearbook. London: HerMajesty's Stationery Office, 2000.

Hodd, M. "Zimbabwe." In The Economies of Africa. Aldershot:Dartmouth, 1991.

U.S. Central Intelligence Agency. World Factbook 2000. <http://www.odci.gov/cia/publications/factbook/geos/zi.html>. Accessed December 2000.

U.S. Central Intelligence Agency. World Factbook 2001. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed October 2001.

World Bank. World Bank Africa Database 2000. Washington DC: World Bank, 2000.

ZDNews.com. "Zimbabwe's Troubled Tourist Industry."<http://www.zwnews.com/issuefull.cfm?ArticleID=37>. Accessed September 2001.

"Zimbabwe." In Africa South of the Sahara. London: Europa Publications, 2000.

—Allan C. K. Mukungu

CAPITAL:

Harare.

MONETARY UNIT:

Zimbabwe Dollar (Z$). Z__BODY__ equals 100 cents. Coins are in denominations of 1, 5, 10, 20, and 50 cents and Z__BODY__ and 2. Paper currency is in denominations of Z$2, 5, 10, 20, 50, and 100.

CHIEF EXPORTS:

Tobacco, gold, ferro-alloys, nickel, cotton, clothing, textiles, agricultural food crops.

CHIEF IMPORTS:

Machinery, transport equipment, manufactured goods, chemicals, fuels.

GROSS DOMESTIC PRODUCT:

US$28.2 billion (purchasing power parity, 2000 est.).

BALANCE OF TRADE:

Exports: US__BODY__.8 billion (f.o.b., 2000 est.). Imports: US__BODY__.3 billion (f.o.b., 2000 est.).