ABSTRACT
Zimbabwe’s early years of independence appeared to augur well for the country’s future prosperity. Renewed access to trade and aid after many years of sanctions, good weather conditions and harvests, and favourable terms of trade, brought rapid growth in excess of 10 per cent per year in 1980 and 1981. Investment rose sharply, and access to services by the population rapidly increased. However, this good record did not continue. The current account balance became heavily negative, and inflation rose sharply (both of which were aggravated by burgeoning public spending). Moreover, the onset of world recession, declining terms of trade and three consecutive drought years caused economic growth to be arrested. The Government was forced to introduce a range of stabilization and adjustment measures which were pursued with only limited success over the period 1983-90. Accordingly, growth remained modest, and per capita income actually fell over those years. This case study traces the impact of these events upon the labour market, with a particular focus upon earnings and employment in the public sector.
