Among all the topics that occupy the minds of policy makers and economists around the world, one of the most neglected is that of “Determinants of Economic Growth in Zimbabwe.” While there are many factors that are considered when developing a country's economy, perhaps none is as important as understanding what these determinants are. These determinants are essential to understanding whether or not the economy will experience long term stagnation or will experience rapid and sustained growth. Understanding how these determinants are determined is key in being able to improve and make changes so as to improve the state of the Zimbabwe economy.
As mentioned earlier, there are many determinants of economic growth. But, even with all this attention and analysis, there are still many issues that remain unknown and have yet to be addressed. And if the problems of Zimbabwe continue to be ignored, it is likely that not only will the economy suffer, but the political stability of the country may be in jeopardy as well.
The level of growth needed in a country's economy to sustain itself, sustain its social structure and maintain political stability is referred to as Determinants of Economic Growth. And, because the determinants are in different shapes and forms, there will always be a wide gap between them. In a country like Zimbabwe, where growth is viewed as the single most important determinant, any changes that have been made to the political structure and economy have had an impact on the level of economic growth. For example, changes in the 2021 constitution have resulted in political turmoil and a major rift in the party system that left several key figures in key positions.
Other determinants of economic growth include the level of international trade and tourism as well as foreign direct investment (FDI). These are some of the more intangible determinants of Zimbabwe's economic performance. However, as with any other aspect of being involved in the business world, trade and FDI cannot simply be taken for granted. Without these sources of income, Zimbabwe would find itself at a severe disadvantage in international markets, which can seriously impact the economic development of any country.
Determinants of economic growth also include a sense of achievement and motivation. While it may seem that any country would welcome more workers, especially in sectors that it has historically been successful at producing, when that worker has no confidence in the national government or the economic policies and practices of that government, then that worker will not feel as though he or she is doing well. This has a knock-on effect, as well. As workers become disgruntled and look for better wages and conditions elsewhere, they also cut down on the flow of new workers into that particular country, meaning that the overall rate of economic growth is lower.
There are also determinants of economic growth that are not easy to quantify or control. These include the attitudes and actions of local and international citizens. A popular issue currently facing Zimbabwe is whether or not the Zimbabwe government is doing a good job of handling the transition of power from Robert Mugabe to . . . . . . cabinet representative Joshua Nkundabatware. There are also concerns about the future of the Zimbabwe dollar, with some analysts predicting that the zeros could soon become worthless.
Naturally, these determinants will differ from one country to another. One country's circumstances may well be conducive to the rapid adoption of reforms, while others may find it difficult to do so. Likewise, there may well be universal factors that govern the determinants of economic growth in any given country. But the fact is that all countries face some external factors that have a profound impact on the ability of their political systems and institutions to deliver basic services and lead a productive and secure life for their citizens.
It is up to each individual to look carefully at all of the determinants of his own situation and to apply what he learns to his own life. The determinants of economic growth in Zimbabwe are both internal and external. It is up to the people of Zimbabwe to make the right choices and to use their opportunities to lead a better life. The future of Zimbabwe and its currency will depend on those choices. So go on and make some!