Statement by Cde Lovemore Matombo




Beyond The Enclave: Towards A Pro-Poor And Inclusive Development Strategy For Zimbabwe On 30 JUNE 2011

(All protocols observed.)

May I also take this opportunity to welcome you all to this historic occasion, the launch of the Update to the ‘Beyond ESAP’ book published by the ZCTU in 1996 entitled ‘Beyond the Enclave: Towards A Pro-Poor and Inclusive Development Strategy for Zimbabwe.’

Our Esteemed Guests of Honour, and Invited Dignitaries, most of you may recall that in 1996, the Zimbabwe Congress of Trade Unions (ZCTU) published its groundbreaking analysis of the Economic Structural Adjustment Programme (ESAP), ‘Beyond ESAP.’ The book marked a new epoch for the labour movement as it moved beyond just criticizing government policies to offering detailed policy alternatives. It also represented an attempt by the labour movement to put together its positions into a cogent policy framework covering the macro and sectoral levels. The ‘Beyond ESAP’ book therefore provided a reference point for the policies of the ZCTU, and was extensively utilized by policy makers, academics, students, and other interested parties. Furthermore, the far-reaching recommendations of the ‘Beyond ESAP’ study, the proposal to establish a national institutional framework for stakeholder participation in national decision-making processes, the Zimbabwe Economic Development Council (ZEDC), culminated in the formation of the National Economic Consultative Forum (NECF) in July 1997 and the Tripartite Negotiating Forum (TNF) in September 1998.

Ladies and Gentlemen, the Zimbabwean economy of 1996 is barely recognizable, having gone through eleven years of crisis (1997-2008), and far-reaching changes. The economy analyzed in the ‘Beyond ESAP’ study and the one existing now are structurally different. For instance, a year before the onset of the crisis (1996) Zimbabwe’s GDP of US$8.6 billion was the second largest of the 15-country SADC, behind that of South Africa at US$143.7 billion. At the height of the economic paralysis in 2008, Zimbabwe’s GDP reached only US$4.8 billion, falling to the rank of eleventh in SADC, a position that was maintained in 2009. Instructively, while South Africa’s GDP was almost 17 times that of Zimbabwe in 1996, it was almost 58 times larger by 2008. Such has been Zimbabwe’s fall in status that a country that used to be in the medium human development category is now at the bottom of the 169 countries reported on in the 2010 Global Human Development Report. As the economy collapsed, Zimbabwe’s human resources went into the Diaspora. Today almost a third of the population is living abroad.

It is against this background of wrenching structural changes that the General Council of the ZCTU requested the Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ), its research think-tank, to update the ‘Beyond ESAP’ book. ZCTU leaders felt the need to ascertain the extent of economic regression and to establish base lines for launching the new, pro-poor, inclusive and humane recovery and development policies so urgently needed. This directive to update the ‘Beyond ESAP’  book took advantage of the fact that the Alternatives to Neo-liberalism in Southern Africa (ANSA) project a regional initiative of the ZCTU and the Southern African Trade Union Coordination Council (SATUCC), is promoting country-level studies in the region.

In delivering this mandate, LEDRIZ and ANSA commissioned 14 papers during the second half of 2008, which provided the basis for the chapters of this book. The research team was guided by two policy editors drawn from the Board of LEDRIZ, Dr. Elizabeth Marunda and Cde. Wellington Chibebe (also Secretary General of ZCTU), while the technical editorial team comprising Dr. Godfrey Kanyenze (LEDRIZ Director), Timothy Kondo (ANSA Programme Coordinator), Prosper Chitambara (LEDRIZ Senior Economist) and Jos Martens (ANSA Associate) guided the research work. Following the production of the first drafts, the papers were presented to the General Council of the ZCTU at a workshop held in August 2009, where detailed comments were provided. The updated papers were further scrutinized at the annual retreat of the LEDRIZ Board and staff, attended also by the Executive Council of the ZCTU and its heads of departments as well as staff from ANSA in December 2009.

The analysis in this book is informed by the understanding that most African economies are characterized by the existence of two radically different parts; a modern or formal segment employing a small proportion of the labour force, and a traditional or non-formal segment employing the bulk of the labour force. This feature is a product of colonial capitalism that captured a small segment of the economy, the formal sector, leaving the bulk of the economy (non-formal segment) under pre-capitalist modes of production. It also reflects the failure of post-independence policies to deal with this structural deformity such that by 2004, instead of the formalization of the economy, four out of every five jobs were informalized, with the decent work deficits that this implies. As such, this disarticulate structure of the economy implies that the formal sector has a growth momentum of its own, and relates to the non-formal segment in a manner that marginalizes and impoverishes the latter, resulting in uneven development – indeed an enclave economy. This structural distortion implies that even in the presence of growth, the economy is unable to absorb the vast numbers of the un- and under-employed into the mainstream economy.

The solution should therefore be steeped in the adoption of people-driven policies that redress this enclave and dual structure to achieve inclusive growth and human development. Reconstituting the state, and transforming it into a democratic, accountable developmental state, is therefore a critical component of the recovery process. As is now the emerging consensus, for development policies to be sustainable, they should be formulated with broad-based stakeholder participation to engender national ownership. It is for such reasons that the book recommends the rationalization of the various fora for social dialogue to create one legislated national stakeholder consultative body. This book therefore represents our desire for such an inclusive, participatory approach and represents our input into the recovery and development of Zimbabwe ‘Beyond the Enclave’ to secure pro-poor, inclusive (shared) growth and development.

Distinguished and Esteemed Guests of Honour, during the course of the production of this book, several people and organizations played some role from its genesis to completion. Firstly, we would like to thank the General Council of the ZCTU, which made the decision to update the ‘Beyond ESAP’ book and provided the impetus for the project.

Special thanks go to the writers of the individual papers, which formed the basis of the chapters of the book, who worked tirelessly to get the papers to an acceptable level of quality. These writers are as follows: Dr. Godfrey Kanyenze [Chapters 1, 7, 8 and 13]; Prosper Chitambara [Chapter 2]; Dr. Prosper Matondi [Chapter 3]; Best Doroh [Chapter 4]; David Matyanga [Chapter 5]; Tsitsi Mariwo-Mbanje and Naome Chakanya [Chapter 6]; Dr. Henry Chikova [Chapter 9]; Benson Zwizwai [Chapter 10]; Dr. Medicine Masiiwa and Rongai Chizema [Chapter 11]; Dr. Joseph Muzulu and Simbarashe Mashonganyika [Chapter 12].

The conceptual framework that informs the book owes a lot to the work of the late Professor Guy C.Z. Mhone, who developed and applied the notion of enclave growth to the economies of Africa. May this book be a celebration of his life and enduring work.

We are especially indebted to Roger Stringer of TextPertise, who meticulously edited the book for publication. The book benefited from his extensive experience and expertise. Furthermore, the project owes a huge debt of gratitude to our cooperating partners, whose financial support made this book possible. ANSA supported the work from inception, while the Royal Danish Embassy and AusAID generously funded the project. The other cooperating partners who provide institutional support to LEDRIZ, namely, FNV-Mondiaal, SASK-Finland, FOS-Belgium, Steelworkers Humanity Fund of Canada, Solidarity Centre and Rosa Luxembourg Foundation enabled LEDRIZ staff to work on the project, for which we are grateful. Finally, we would like to thank our publishers, Weaver Press for the unwavering support and commitment throughout the process of producing this book. We appreciate your commitment to excellence.

Ladies and Gentlemen, we would like to officially present the book to the three principals of the Global Political Agreement (GPA), who are the Esteemed Guests of Honour at this launch today so that they can become the advocates of the ideas contained therein, to which you bear witness today. They can make remarks upon receiving the book as a sign that they have tied themselves to the mast of pro-poor and inclusive growth and humane development.

Thank you.