Why Has Poverty Increased in Zimbabwe?

Poverty in Zimbabwe increased significantly during the 1990s, and it increased in all sectors of the economy. In the middle of the decade, more than 60 percent of Zimbabwean households fell below the national poverty line. There are competing reasons for this: some say it was the result of the government instituting the Economic Structural Adjustment Program (ESAP), and others say that ESAP's effectiveness was hampered by recurring drought. This document sheds light on the sources of the increase in Zimbabwean poverty, with the use of non-parametric, and parametric statistical methods. These techniques support the conclusion that the drought, though harmful, does not entirely explain the increase in poverty. The deteriorating economic environment, reducing the returns to both human, and physical assets, also had profound effects on household well-being. What are the prospects for improvement in the near future? Only serious structural changes to the economy can create labor market conditions, conducive to long-term, broad-based growth.

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Bibliographic Details
Main Authors: Alwang, Jeffrey, Mills, Bradford F., Taruvinga, Nelson
Language:English
en_US
Published: Washington, DC: World Bank 2002-03
Subjects:AGRICULTURAL PRODUCTION, CLIMATE, CONSUMPTION EXPENDITURES, COST RECOVERY, DEBT, DENSITY FUNCTION, DESCRIPTIVE STATISTICS, DOMESTIC MARKETS, ECONOMIC CHANGE, ECONOMIC DECLINE, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC POLICY, EMPLOYMENT, EMPLOYMENT STATUS, EQUIVALENT CONSUMPTION, EXCHANGE RATE, EXERCISES, EXPENDITURE SURVEY, EXTREME POVERTY, FAMILIES, FARMS, FOOD NEEDS, FOREIGN EXCHANGE, FUNCTIONAL FORM, GINI COEFFICIENT, GOVERNMENT EXPENDITURES, HEALTH MINISTRIES, HEALTH SERVICES, HEALTH SURVEYS, HIGH POVERTY, HOUSEHOLD ASSETS, HOUSEHOLD CONSUMPTION, HOUSEHOLD DATA, HOUSEHOLD HEAD, HOUSEHOLD WELFARE, HOUSING, HUMAN CAPITAL, IMMUNIZATION, IMPORTS, INCOME, INCREASED SPENDING, INDEXES, INFLATION, INFORMAL SECTOR, INFORMAL SECTOR EMPLOYMENT, INTEREST RATES, INTERNATIONAL TRADE, INVESTMENT CLIMATE, LABOR MARKET, LAND USE, LEGISLATION, MACROECONOMIC CONDITIONS, MARKETING, MIGRATION, NATIONAL POVERTY, NATIONAL POVERTY LINE, POLICY REFORMS, POOR HOUSEHOLDS, POVERTY CHANGES, POVERTY DYNAMICS, POVERTY INCREASE, POVERTY LEVELS, POVERTY LINE, POVERTY OUTCOMES, POVERTY PROFILE, POVERTY REDUCTION, POVERTY STATUS, POVERTY TRENDS, PRIMARY CARE, PRIMARY SCHOOL, PRIVATE SECTOR, PRO-POOR, PROBABILITY, PRODUCTIVITY, PROPERTY RIGHTS, PUBLIC INVESTMENT, PUBLIC SECTOR, PUBLIC SERVICE, PUBLIC SERVICES, REAL TERMS, REDUCED INEQUALITY, REDUCING POVERTY, RURAL AREAS, RURAL HOUSEHOLDS, RURAL INFRASTRUCTURE, RURAL RESIDENCE, SOCIAL DEVELOPMENT, SOCIAL DIMENSIONS, SOCIAL SECTORS, STATISTICAL OFFICE, STRUCTURAL ADJUSTMENT, TAXATION, TERMS OF TRADE, URBAN AREA, URBAN AREAS, URBAN HOUSEHOLDS, URBAN POOR, URBAN POVERTY POVERTY INCIDENCE, HOUSEHOLD SURVEYS, POVERTY DEPTH, POVERTY REDUCTION STRATEGIES, POLICY FRAMEWORK, ABSOLUTE POVERTY, INSTITUTIONAL FRAMEWORK, STRUCTURAL ADJUSTMENT PROGRAMS, MACROECONOMIC CONTEXT, DROUGHT DAMAGE, STATISTICAL ANALYSIS, ECONOMIC CONSTRAINTS, PHYSICAL CAPACITY, HOUSEHOLD WELFARE INDICATORS, STRUCTURAL REFORMS, LABOR MARKET NEXUS,
Online Access:http://documents.worldbank.org/curated/en/2002/03/1768223/poverty-increased-zimbabwe
https://hdl.handle.net/10986/14060
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Summary:Poverty in Zimbabwe increased significantly during the 1990s, and it increased in all sectors of the economy. In the middle of the decade, more than 60 percent of Zimbabwean households fell below the national poverty line. There are competing reasons for this: some say it was the result of the government instituting the Economic Structural Adjustment Program (ESAP), and others say that ESAP's effectiveness was hampered by recurring drought. This document sheds light on the sources of the increase in Zimbabwean poverty, with the use of non-parametric, and parametric statistical methods. These techniques support the conclusion that the drought, though harmful, does not entirely explain the increase in poverty. The deteriorating economic environment, reducing the returns to both human, and physical assets, also had profound effects on household well-being. What are the prospects for improvement in the near future? Only serious structural changes to the economy can create labor market conditions, conducive to long-term, broad-based growth.