ABSTRACT
In Zimbabwe, the policies and controls were triggered by unilateral declaration of independence (UDI) and UN sponsored economic sanctions. This was followed by foreign exchange rationing which was particularly constraining especially to the manufacturing sector. The economy survived the effects of sanctions and diversified its industrial sector. While the performance of manufacturing in the first three years of independence was quite remarkable, it declined substantially after 1982. The main constraint was reduced foreign exchange available to import raw materials and fund investment in view of balance of payments problems. Government policies, intentions and attitudes towards the private sector were unclear. Investors were unable to make decisions in the face of uncertainty. The government was a main actor as it distributed foreign exchange, designed and implemented industrial policies, initiated incentives, legislated minimum wages and job security laws and above all attempted to control the development of the economy. Further, the government controlled prices through various forms of price control regulations.
