Economic Decline Of The Zimbabwean Economy Essay - 1339 Words

In this paper I wish to evaluate the economic decline of the Zimbabwean economy as the result of IMF to be specifically from 1990 to 2000. I have based this paper on the research by Asad Ismi, Impoverishing a Continent: The World Bank and the IMF. I will focus much on what the IMF did to Zimbabwe whether Zimbabwe was really made to recover from the crisis or it was actually worsened. Many developing nations are in debt and poverty partly due to the policies of international institutions such as the International Monetary Fund (IMF) and the World Bank. Numerous studies for many years criticize their programs for resulting in poverty. Structural Adjustment Policies (SAPs) is one of the mentioned program the IMF is using in the name of financial aid, debt repayment, economic restructuring and developmental projects. But the way it has happened has required poor countries to reduce spending on things like health, education and development, while debt repayment and other economic policies have been made the priority. The World Bank and the IMF imposed SAPs on developing countries that needed to borrow money to service their debts. The World Bank’s SAPs, first instituted in1980, enforced privatization of industries ( including necessities such as healthcare and water), cuts in government spending and the imposition of user fees, liberalizing of capital markets (which leads to unstable trading in currencies) market based pricing (which tends to raise the cost of basic goods)Show MoreRelatedEssay The Zimbabwe Hyperinflation1454 Words   |  6 Pages$20 Zimbabwean dollar was the largest currency domination and it was used in 95% of all Zimbabwean transactions. The weakening of Zimbabwe’s economy began in 1999 when the economic activities started to decline and public debt started to rise. 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