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Poverty eradication in Zimbabwe

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Dr. Jessica Hamadziripi proposes a framework for poverty eradication in one of the world's poor nations : Zimbabwe. She demonstrates the need of development for home-sourced finance, parallel to a "framework for Indigenization and Empowerment" capable of generating sufficient incomes at personal and household level to meet the daily necessities of life. She stresses that these home-grown approaches might fail if citizens are not empowered at local level.

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Published 01 April 2013
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a
Jessica HAMADZIRIPIPoverty eradication in Zimbabwe
Meeting the millennium development goals (MDGs)
through home-grown business approaches
In this essential book, Dr. Jessica Hamadziripi proposes a framework for
poverty eradication in one of the world’s poor nations : Zimbabwe. She
demonstrates the need of development for home-sourced fnance, parallel
to a « framework for Indigenization and Empowerment » capable of generating Poverty eradic
incomes at personal and household level suffcient to meet the daily necessities
of life.
Dr. Hamadziripi stresses that these home-grown approaches might fail if in Zimbabwe
citizens are not empowered at the local level.
Furthermore, from her standpoint as a Zimbabwean, she also points out
some critical voids in the Millennium Development Goals. For example, Meeting the millennium development goals (MDGs)
agriculture is not specifcally mentioned in the MDG, even though the majority
through home-grown business approachesof Africa’s - and Zimbabwe’s - poor families are, actually, rural farmers. With
their focus on primary education, enrollment and completion, the Millennium
Development Goals have left aside agriculture and fnance, which have strategic
implications on economic growth.
Dr. Hamadziripi’s research suggests that a ‘one size fts all model’ will not
suffciently respond to the profle of Zimbabwe; however, her study does fnd
a set of similar constraints in meeting MDG1, such as the lack of health care
absorptive capacity, poor access to safe drinking water and basic sanitation, a
weak educational system, human resource limitations, and others. The measures
she suggests include political, organizational, and functional improvements, and
the need to nurture local organizations.
Jessica Hamadziripi spent her formative years in a rural area of Zimbabwe
and she continues to have strong contact with members of her family that reside
in the rural regions of her country. She has worked with disadvantaged people
as a volunteer to assist the poor in Zimbabwe, Kinshasa in DRC and Maputo in
Mozambique. The experiences she acquired not only gave her insight as to why
people continue to live in poverty, but also gave her the motivation to search for
solutions to remove the worst forms of this scourge from society.
Her strong desire to see people live with dignity persuaded her to research on how
best to eradicate poverty. Although there are many actors involved in eradicating The future lies in strategically empowering nations
poverty, her research points to the primary and leading role of each sovereign state to take charge of their own development,
in this effort.
including human development
Front Page photo – Jessica Hamadziripi
ISBN : 978-2-336-00525-6
44 e
Poverty eradication in Zimbabwe
Jessica HAMADZIRIPI
Meeting the millennium development goals (MDGs) through home-grown business approaches
tion





POVERTY ERADICATION IN ZIMBABWE

Études africaines
Collection dirigée par Denis Pryen et François Manga Akoa
Dernières parutions
M. Rachel ZONGO, La mondialisation et la société de
l’information. Quelle place pour l’Afrique au sud du Sahara,
2013.
Essè AMOUZOU, Partenaires en développement et réduction
de la pauvreté en Afrique noire, 2013.
Essè AMOUZOU, La démocratie à l’épreuve du régionalisme
en Afrique noire, 2013.
Abou-Bakr Abélard MASHIMANGO, La bellicité dans la
Corne de l’Afrique (1961-2006). Transnationalisme ethnique,
États et conflits armés, 2013.
Joseph DOMO, Les relations entre frontaliers.
CamerounTchad, 2013.
Idrissa BARRY, Migrations, ONG et développement en Guinée,
2013.
Windpagnangdé Dominique KABRE, La conclusion des
contrats électroniques. Étude de droits africains et européens,
2013.
Yafradou Adam TAIROU, Préoccupations environnementales
et droit de l’entreprise dans l’espace OHADA, 2013.
Gabin KORBEOGO, Pouvoir et accès aux ressources
naturelles au Burkina Faso. La topographie du pouvoir, 2013.
Jean-Claude MASHINI, Le développement régional en
République démocratique du Congo de 1960 à 1997, 2013.
Kouamé René ALLOU, Les Nzema, un peuple akan de Côte
d’Ivoire et du Ghana, 2013.
Emmanuel NKUNZUMWAMI, Le partenariat Europe-Afrique
dans la mondialisation, 2013.
Lang Fafa DAMPHA, Nationalism and reparation, 2013.
Jean-François BARLUET, Un drame colonial en Côte
d’Ivoire : l’affaire Quiquerez Segonzac (1891-1893), 2013.
Gervais MUBERANKIKO, La protection du locataire-gérant
en droit OHADA, 2013.
Gervais MUBERANKIKO, La contribution de la
décentralisation au développement local, 2013.
Alain COURNANEL, Economie politique de la Guinée
(19582010). Des dictatures contre le développement, 2012. Jessica HAMADZIRIPI





POVERTY ERADICATION IN ZIMBABWE


Meeting the millennium development
goals (MDGs) through home-grown
business approaches
























































© L'HARMATTAN, 201
5-7, rue de l'École-Polytechnique ; 75005 Paris

http://www.librairieharmattan.com
diffusion.harmattan@wanadoo.fr
harmattan1@wanadoo.fr

ISBN : 978-2-336-00525-6
EAN : 9782336005256
This book was originally presented as a PhD thesis to the
Academie de Paris
Ecole des Hautes Etudes Internationales
Centre D’Etudes Diplomatiques et Strategiques


Under the Supervision of
Doctor Serge BESANGER


The thesis was defended on 15 December, 2011
Paris, France




The thesis was written in the third person and the book is published
in the third person. My first degree and Masters programmes are in
Business. This is my first study in International Relations and I do
not feel that I have the experience and authority to write in the first
person. I however learned much about poverty eradication and the
actors who are working to meet Goal number 1 of the Millennium
Development Goals.






In memory of my loving son,
Tatenda Andrew Hamadziripi



ACKNOWLEDGEMENTS


I am hugely grateful to my Ph.D. supervisor, Dr Serge Besanger
whose guidance and support motivated me to focus on achieving this
goal. I appreciate his sound advice and enthusiasm without which I
would have been lost.

I would like to thank the staff at CEDS for providing a stimulating
environment which whetted my appetite for an analytical
appreciation of international relations.

I am grateful for the support of the OECD Development Centre in
Paris, in particular Peter Raggett, librarians Anne La Riviere and
Michele Girard; and of the Documentation Française in Paris. I can
not mention all the people who assisted me including those that I
interviewed in the rural regions of Zimbabwe and in various
institutions in Zimbabwe and France but I am immensely grateful to
them.

I pay tribute to experts in the Government of Zimbabwe without
whose cooperation this thesis would not have been fulfilled, in
particular Honourable Dr Isak Mudenge, Honourable Dr Olivia
Muchena, Laxon Chinhengo of the Department of Social Welfare,
Greemas Mashonganyika of the Youth Ministry, Erica Jones, Abiot
Maronge and Douglas Chitando of the Ministry of Local Government,
Rural and Urban Development, Dr Dawson Munjeri and Constance
Chemwayi.

I extend my appreciation to many colleagues, acquaintances and all
who were there for me throughout my thesis writing. I wish to thank
my entire extended family for assisting me in getting resource
information, providing loving support and cheering me on. To
Yvonne, Nyasha Harold and Gibson, I cherish their support. I owe
my deepest gratitude to my children, Tatenda Andrew, Nyasha David,
Mufaro and my son in law, Dzidzai, for exhorting me and checking
on my progress.

Most importantly, this thesis would not have been possible unless
my husband, David, had encouraged me to overcome my doubts and
continue writing this study. I am forever grateful to him for creating
a loving environment in a way words cannot express. I dedicate this
thesis to him.

Above all, to my God, my Creator, I am overwhelmed and lost for
words for His mercies and faithfulness.

7

Preface by Dr Serge Pierre BESANGER
Professor of Economics at ESCE

In 2015, global leaders and central bankers will be gathering at
separate venues at the United Nations headquarters in New York and
the IMF/World Bank in Washington to undertake comprehensive
reviews of progress toward the Millennium Development Goals and,
hopefully, chart a new course for accelerated action toward the most
pressing one, known as MDG One, the eradication of extreme poverty
and-hunger.

Many countries have moved forward, including some of the poorest
in Africa, demonstrating that setting bold ambitions in the fight
against global poverty could yield positive results. Unfortunately,
progress towards reaching the goals has been uneven. Unmet
commitments, inadequate funding, and lack of accountability, have
created shortfalls, which in many cases have been aggravated by the
global financial crisis.

In this important book, Dr. Jessica Hamadziripi proposes a
framework for poverty eradication in one of the world's poor nations :
Zimbabwe. She demonstrates the need for the development of
homesourced finance, parallel to a "framework for Indigenization and
Empowerment" capable of generating incomes at personal and
household level sufficient to meet the daily necessities of life.

Dr. Hamadziripi stresses that these home-grown approaches might
fail if citizens are not empowered at the local level.

Furthermore, from her standpoint as a Zimbabwean, she also points
out some important voids in the Millennium Development Goals. For
example, agriculture is not specifically mentioned in the MDG, even
though major a portion of Africa - and Zimbabwe's - poor families
are, actually, rural farmers. With their focus on primary education,
enrollment and completion, the Millennium Development Goals have
left aside agriculture and finance, which have strategic implications
on economic-growth.

Dr. Hamadziripi's research suggests that a 'one size fits all model'
will not sufficiently respond to the profile of Zimbabwe ; however, her
study does find a set of similar constraints in meeting MDG1, such
as the lack of health care absorptive capacity, poor access to safe
drinking water and basic sanitation, a weak educational system,
human resource limitations, and others. Her proposed measures
include political, organizational, and functional improvements, and
the need to nurture local organizations.
9
To accelerate progress towards MDG-1 in Zimbabwe, Dr Hamadziripi
urges an agreement to provide enough funds to the World Bank and
the African Development Bank, as well as the cancellation of part of
the debt, in order to allow her country, along with other
impoverished countries, to re-channel the resources saved from the
forgiven debt to social programs aimed at improving health and
education and for alleviating poverty.
Dr Hamadziripi has written a great book that aims to see poverty and
underdevelopment as a set of concrete problems that, once properly
identified and understood, can be solved one at a time. Using the
best observational evidence, she builds a case for what actually
works in helping overcome poverty, taking up the fight against some
of the biggest barriers – lack of financing, ignorance, ideology and
inertia.

In this thoughtful and rigorous work, she brings her analysis down
to specific recommendations about concrete programs that will make
a difference in the lives of poor people in Zimbabwe, such as
increasing access to immunisation, and offering cash transfers. This
book really works as a great micro-economic companion piece to
macro-economic theory and its takes on development in Africa and
the fight against poverty.
Dr. Hamadziripi is allergic to grand generalizations about the secrets
of economic development. Instead, she appeals to her own
on-theground observations to explore how poor people in her country
actually cope with their poverty: their expectations, aspirations, and
choices. There seem to be lots of small yet perfectly meaningful
victories to be won on the ground in Zimbabwe, through both private
and public action, that together will add up to a significant
improvement in the lives of the poor in her country.
The reader will be both fascinated and convinced by Dr.
Hamadziripi's argument that antipoverty programs will indeed prove
effective if properly designed. Dr. Hamadziripi offers a compelling yet
refreshingly original take on economic development in Africa, and an
entirely new perspective into a subject once dominated by big names
such as Jeffrey Sachs and William Easterly. She does a tremendous
job enriching our discipline's grasp of the most complex issues of
poverty, which can be misunderstood by people who have not lived
on the ground. Her clear, well-structured arguments should provide
an essential wake-up call for any person who is interested in
economic development in Africa.

10







Breaking the cycle of poverty begins
by acting where disadvantage is found.
Irina Bokova



































ACRONYMS


ACP Africa, the Caribbean and the Pacific
AGRITEX Agricultural Research and Extension Services
BWIs Bretton Woods Institutions
CAMPFIRE Communal Areas Management Programme Indigenous Resources
CAS Country Assistance Strategies
CBOs Community Based Organizations
CDF Comprehensive Development Framework
CIRP Community Infrastructure Rehabilitation Project
CPAP Country Programme Action Plan
CSO Civil Society Organization
CSR Corporate Social Responsibility
DA District Administrator
DAC Development Assistance Committee
DBA District Business Analysts (own creation)
DCF Development Cooperation Forum
DCI Development Cooperation Instrument
DDO District Development Officers (own creation)
DESA Department of Economic and Social Affairs
DPI Department of Public Information
DPO District Project Officers (own creation)
DRC Democratic Republic of Congo
EC European Commission
ECOSOC Economic and Social Council
EDF European Development Fund
ENPI EuropeNeighbourhood and Partnership Instrument
ERP an Recovery Program
ESAF Extended Structural Adjustment Facility
ESAP Economic Structural Adjustment Programme
EU European Union
FAO Food and Agricultural Organization
FPL Food Poverty Line
GA General Assembly
GATT GeneAgreement on Tariffs and Trade
GDP Gross Domestic Product
GNI Gross National Income
GNP Gross National Product
GOZ Government of Zimbabwe
GPRS Ghana’s Growth and Poverty Reduction Strategies
GROs Grassroots Organizations
HDI Human Development Index
HDL Human Development Levy (own creation)
HDR Huelopment Report
HIPC Highly Indebted Poor Countries
HPI Human Poverty Index
13
IBRD International Bank for Reconstruction Development
ICRC International Committee of the Red Cross
IDA International Development Association
IFC International Finance Corporation
ILO International Labour Organization
IMF International Monetary Fund
IMR Industrial Minerals and Rocks
IRBM Integrated Results Based Management
LLER Locally Led Early Recovery Programme
LRRP Land Reform and Resettlement Programme
MDGs Millennium Development Goals
MERP Millennium Economic Recovery Programme
MFI Micro-Finance Institution
MIE Ministry of Indigenisation &Empowerment (own creation)
MIGA Multilateral Investment Guarantee Agency
MPH Make Poverty History
MSME Micro, Small and Medium Enterprise CD Ministry of Small & Medium Enterprises Co-operatives Development
MYDIE Ministry Youth Development Indigenisation Empowerment
NDA National Development Agency (own creation)
NDPRS lopment and Poverty Reduction Strategy
NEDEF New Economic Development Framework
NGO Non-Governmental Organization
ODA Official Development Assistance
OECD Organisation for Economic Cooperation Development
PAAP Poverty Alleviation Action Plan
PARPA Action Plan for the Reduction of Absolute Poverty
PASS Poverty Assessment Study Survey
PDC Provincial Development Committee
PDH Personal Development Hierarchy (own creation)
PECO Poverty Eradication Committees (own creation)
PEP Poverty Eradication Programme (own creation)
PRGF Poverty Reduction Growth Facility
PRS Poverty Reduction Strategy
PRSPs Povegy Papers
PRSTF Povegies Trust Fund
PVOs Private Voluntary Organizations
RBM Results Based Management
RDC Rural District Council
RDDC Rural District Development Committee
RDF Rural District Fund
RPO Regional Poverty Observatory
RPRF Regional Poverty Reduction Framework
SADC Southern Africa Development Community
SAP Structural Adjustment Programme
SDF Social Development Fund
SDN Social Development Network
14
SEDCO Small Enterprises Development Corporation
SMME Small, Micro, Medium Enterprise
SSP Sector Strategy Paper
STERP Short Term Emergency Recovery Programme
TCPL Total Consumption Poverty Line
UN United Nations
UNCED United Nations Conference on Environment Development
UNCT United Nations Country Team AD ons Conference on Trade and Development
UNDAF United Nations Development Assistance Framework
UNDG United Nations Dent Group
UNDP velopment Programme
UNESCO United Nations Education Scientific & Cultural Organization
UNFCC United Nations Framework Convention on Climate Change
USA United States of America
USAID United States Agency for International Development
VIDCO Village Development Committee
WADCO Ward Developmen
WB The World Bank
WHO World Health Organization
WTO World Trade Organization
ZEDS Zimbabwe Economic Development Strategy
ZIMPREST Zimbabwe Programme Economic & Social Transformation
ZIMSTAT Zimbabwe National Statistics Agency
ZiNEPF Zimbabwe National Employment Policy Framework
ZUNDAF Zimbabwe United Nations Development Assistance
Framework

















15
TABLE OF CONTENTS

ACKNOWLEDGEMENTS 7
PREFACE 9
ACRONYMS 13
LIST OF FIGURES and CHARTS 22 TABLES BOXES 23
MAP OF ZIMBABWE 25
INTRODUCTION 27



SECTION I POVERTY – A PHENOMENON
UNDER STUDY 33


CHAPTER 1 - POVERTY : THE CHALLENGE 35

1.1 OVERVIEW 35
1.2 SCOPE OF POVERTY 38
1.3 THE NATURE OF POVERTY 41
1.3.1 Consumption Poverty
1.3.2 Income Poverty
1.3.3 Human Development
1.4 POVERTY DEFINITION 45
1.4.1 Adam Smith
1.4.2 Amartya Sen
1.4.3 Multilateral Institutions
1.4.4 Zimbabwe’s Poverty Assessment Study Survey
1.4.5 Mozambique’s PARPA
1.4.6 Own Definition
1.5 MEASUREMENTS OF ECONOMIC POVERTY 50
1.5.1 Poverty Line
1.5.2 Bootstrapping
1.5.3 Human Development Index
1.5.4 Indicators
1.6 BREAKING-THROUGH 52
1.6.1 The hierarchy of needs
1.6.2 The Yearning Effect


CHAPTER 2 - ZIMBABWE: THE SUBJECT OF THE PROGRAMME 57

2.1 THE HISTORY OF ZIMBABWE 57
2.2 POVERTY ELEMENTS 59
2.2.1 ThePeople
2.2.2 History of Poverty
2.2.3 Classification of Poverty
2.2.4 Causes Poverty
2.3 ECONOMIC CONDITIONS72
17
2.3.1 Economic Infrastructure
2.3.2 Land Reform Programme
2.3.3 Shocks
2.4 THE GEOGRAPHY OF ZIMBABWE 77
2.4.1 Physical Layout
2.4.2 Natural Resources
2.5 SUMMARY 83


SECTION II ACTORS INVOLVED IN
ERADICATING POVERTY 85


CHAPTER 3: MYRIAD ACTORS WORKING TO ERADICATE POVERTY 87

3.1 OVERVIEW OF ACTORS 87
3.2 EXAMPLES OF SOME ACTORS 90
3.2.1 The United Nations Organization
3.2.2 The World Bank
3.2.3 Non-Governmental Organizations (NGOs)
3.2.4 The European Union and Development Aid
3.2.5 The Government of Zimbabwe
3.2.6 Business Corporations
3.3 SUMMATION 110


CHAPTER 4 – THE UNITED NATIONS 113

4.1 THE LEGITIMACY OF THE UN TO DEAL WITH MDGs 116
4.2 THE UN’s MANDATE TO ERADICATE POVERTY 118
4.3 THE UN’s OPERATIONS IN MEMBER COUNTRIES 120
4.4 LIMITATIONS OF THE UN TO TACKLE POVERTY 133
4.4.1 Resources
4.4.2 Clipped wings of the UN
4.4.3 The UN monitoring its own work
4.5 THE WAY FORWARD 141


CHAPTER 5 – NON-GOVERNMENTAL ORGANIZATIONS (NGOs) 143

5.1 UNDERSTANDING NON-GOVERNMENTAL ORGANIZATIONS 143
5.1.1 Who are theNGOs?
5.1.2 The Mandate of NGOs
5.1.3 Involving NGOs today
5.2 NGOs RELATIONS WITH OTHER ACTORS 150
5.2.1 The UN and NGOs
5.2.2 Member States and NGOs
5.2.3 Non-Governmental Organizations and Donors
5.2.4 NGOs relations among themselves
5.3 THE WORK OF NON-GOVERNMENTAL ORGANIZATIONS 158
5.4 COOPERATION WITH NGOs TO MEET MDGs 165
18

CHAPTER 6 – THE WORLD BANK 171

6.1 JUSTIFICATION TO DEAL WITH POVERTY ISSUES 171
6.1.1 The Evolving Mandates of the World Bank
6.1.2 The Functions of the Bank
6.1.3 The overall operations of thek
6.1.4 Relations with other Development Partners
6.2 PRINCIPLE APPROACHES TO HELP THE POOR 187
6.2.1 Infrastructure Approach
6.2.2 Economic Approaches
6.2.3 Socio-Economic Principles
6.2.4 Political-Socio-Economic Principles
6.3 INSTRUMENTS TO ERADICATE POVERTY 200
6.3.1 Debt-Relief
6.3.2 The Bank as an Aid Channel
6.3.3 Micro-Finance
6.4 COLLABORATING TO TACKLE POVERTY 205
6.4.1 Funding
6.4.2 Trade and Trade Markets
6.4.3 Our Proposal

CHAPTER 7 – DONORS AND DEVELOPMENT AID 211

7.1 BACKGROUND ON AID 211
7.2 ADMINISTERING DEVELOPMENT AID IN THE EU 216
7.2.1 Sources of Development Aid
7.2.2 Delivery Modalities
7.3 ADVANTAGES OF DEVELOPMENT AID 223
7.3.1 International Commitment
7.3.2 Infrastructure Development
7.3.3 Source of Funds
7.3.4 Socio-Economic Development
7.4 DISADVANTAGES 227
7.4.1 Framework to eradicate poverty
7.4.2 Aid does not provide for the necessities of life
7.4.3 We can not donate people out of poverty
7.4.4 Lack of ownership
7.4.5 The uncertainty of aid
7.5 THE ROLE OF THE EU IN ERADICATING POVERTY 234

CHAPTER 8 – THE GOVERNMENT OF ZIMBABWE 237

8.1 MANDATE TO ERADICATE POVERTY 237
8.1.1 Legal Mandate
8.1.2 Multilateral obligations
8.1.3 Challenges to eradicate poverty

8.2 GOVERNMENT EFFORTS BETWEEN 1980 AND 1999 249
8.2.1 Education Policies
8.2.2 Economic Measures
8.2.3 Social Measures
19
8.3 POLICY AND MEASURES TO MEET MDGs 255
8.3.1 Land and Agriculture
8.3.2 Rural Development
8.3.3 Social Services
8.3.4 Youth Employment
8.3.5 Micro, Small and Medium Enterprises Development
8.4 GOVERNMENTS: CRITICAL ACTOR TO ERADICATE POVERTY 275
8.4.1 Governments understand their territories
8.4.2 Governments to be the custodians of their territories
8.4.3 Working with other Actors to eradicate poverty
8.4.4 The responsibility of Governments



SECTION III – ERADICATING POVERTY THROUGH
HOME-GROWN BUSINESS APPROACHES 281


CHAPTER 9 – MINISTRY OF INDIGENISATION & EMPOWERMENT 283

9.1 RATIONALE FOR THE MINISTRY 283
9.1.1 Necessity for the Ministry
9.1.2 The purpose of the Ministry
9.2 MANDATE 294
9.3 POLICIES 295
9.3.1 Mission Statement
9.3.2 Ownership of development approaches
9.3.3 Financial development policies
9.3.4 Indigenisation
9.3.5 Empowerment
9.3.6 Trade
9.4 SOURCES OF FUNDS 304
9.5 STRATEGIC OBJECTIVES 309
9.6 STRUCTURE 311
9.6.1 Head Office
9.6.2 Field Offices
9.7 MANAGEMENT SYSTEMS 315
9.7.1 Information Management
9.7.2 Control and Monitoring
9.7.3 Quality Systems
9.7.4 Personnel Performance Systems
CHAPTER 10 – NATIONAL DEVELOPMENT AGENCY 321

10.1 PURPOSE 321
10.1.1 Objectives
10.1.2 Mandate
10.1.3 Mission Statement
10.2 PRINCIPLES 327
10.3 FUNCTION 329
10.4 THE AGENCY STRUCTURE 332
10.4.1 Agency Membership
20
10.4.2 Governance
10.4.3 Organogram
10.4.4 Control Systems
10.4.5 Monitoring and Evaluation
10.5 STRATEGIES 342
10.5.1 Strategy Formulation
10.5.2 Strategic Objectives
10.5.3 Strengths, Weaknesses, Opportunities, Threats (SWOT)
10.6 SOURCE OF REVENUE 352
10.6.1 Sovereign Wealth Funds
10.6.2 The Selected Type of Revenue Source
10.6.3 Levying Mining and Agro-Forest Companies
10.6.4 Operations of the Fund


CHAPTER 11 – POVERTY ERADICATION PROGRAMMES 369

11.1 THE DEVELOPMENT APPROACHES 369
11.2 BASIC SERVICES IN RURAL AREAS 372
11.3 BOTTOM-UP APPROACH 374
11.3.1 Capacity Building
11.3.2 Diversification
11.3.3 The Bottom-Up Structure
11.4 IDENTIFICATION OF PROJECTS 380
11.5 STRATEGIES 388
11.5.1 Yearn to Breakthrough
11.5.2 Agro-Sector
11.5.3 Off-Farm Activities
11.5.4 Value Chain Addition
11.5.5 Markets and Trade
11.5.6 Information
11.6 MONITORING SYSTEM 397
11.6.1 Business Plan
11.6.2 Reports
11.6.3 Reporting System
11.6.4 Supervisory visits

CONCLUSION 399
BIBLIOGRAPHY 403
ANNEX – I: Official list of MDG indicators 431
ANNEX – II: Map of Africa 433

MAPS

Map of Zimbabwe 25
Map of Africa 433






21
FIGURES AND CHARTS

3.1 Mini-Organogram of the United Nations 91
3.2 The UN Agencies & Programmes involved in Poverty Issues 92
4.1 UN Budget: Part IV. International cooperation for development 133
7.1 Percentage of ODA to Africa – 2003 216
7.2 Share of Member State ODA in total EU ODA (2009) 218
7.3 The real use of ODA in Sub-Saharan Africa PRGF countries 221
8.1 Differences between statehood & other recognised entities 237
8.2 Structure of Local Government of Zimbabwe 261
9.1 Illustration of the support programme 293
9.2 Casual chain linkages 300
9.3 Departments at Head Office 313
9.4 Field Office Structures 314
10.1 National Board of Directors 337
10.2 Reporting Structure for the Agency 338


TABLES

1.1 Zimbabwe’s poverty targets 37
1.2 Maslow & Personal Development Hierarchy of Needs 54
2.1 Size and Population of provinces 59
2.2 Financial support for year 2004 75
2.3 Distribution of Agricultural Regions 78
2.4 Land area of selected countries 79
2.5 Examples of Industrial Minerals & Rock Deposits 81
4.1 The UN targets for Goal 1 115
4.2 Global Conferences and Summits 117
4.3 Human and income poverty 125
5.1 Examples of Non-Governmental Organizations 148
6.1 Purpose of World Bank Group members 176
6.2 Extracts of Member Countries’ Subscriptions and Voting Power 182
6.3 Summary of Bank’s social policies over the years 196
7.1 Part of Aid Distribution to Mozambique 226
7.2 Regional breakdown of annual budget support 233
8.1 Link between Copenhagen Commitments & MDG number 1 243
8.2 Performance of the Zimbabwe Economy 1986-2007 244
8.3 Distribution of Households by region 257
8.4 Extracts of some strategies that facilitate SMMEs growth 273
9.1 Indicators to be incorporated 289
9.2 Some examples of sources of revenue for governments 305
10.1 Comparison of Mandates 326
10.2 Examples of Tax Rates in Zimbabwe 353
10.3 Estimated Cost of Meeting the MDGs 355
10.4 Some of the countries that have SWFs 356
10.5 Examples of Tax rates charged by some countries 357
10.6 Estimates - total wood stocks of indigenous forests & woodlands 358
10.7 Extracts of some Key Characteristics of Fiscal Mineral regimes 361
11.1 Development co-operation in key concepts 369
11.2 Services for rural areas 373

22

BOXES


1.1 Millennium Development Goals (MDGs) 36
1.2 View towards the poor 38
2.1 Province classification of poverty 67
2.2 Classification of households/persons into poverty categories 67
2.3 CAMPFIRE programme 82
3.1 Objectives of the World Bank towards poverty issues 96
5.1 Non-Governmental Organizations definitions 143
5.2 Evolution of Civil Society 144
5.3 Range of Nongovernmental Politics 147
5.4 The Bank’s relationship with NGOs 156
5.5 Reasons to cooperate with NGOs 167
5.6 Rationale to work with NGOs with an eagle’s eye 168
6.1 Country Assistance Strategies (CAS) 174
6.2 Uses of IDA grants 178
6.3 Types of loans offered by the Bank 179
6.4 Roles of the Bank 180
6.5 BWIs areas of concern 185
6.6 The Bank’s Land Reform Support Project in Zimbabwe 189
6.7 Levels of economic adjustment 192
6.8 Key ingredients in the Bank’s development prescription 193
6.9 Stated Objectives of the PRS Initiative 198
6.10 Uncertainty and risk in projecting attainment of the MDGs 208
8.1 Key constitutive legal treaties 239
8.2 Keve legal multilateral treaties 241
8.3 Many-Sided Approach 248
8.4 PAAP as a strategy 253
8.5 SDA Programme action strategy 254
8.6 National Development & Poverty Reduction Strategy (NDPRS) 256
8.7 Water Management 260
8.8 Roles within the Structure of Local Government 262
8.9 Powers & Mandate of Local Authorities / Councils
8.10 Sources of the Fund 269
8.11 s of funds for SEDCO 274
9.1 Indigenisation Definitions 284
9.2 Empowerment De
9.3 Inequality in Zimbabwe 287
9.4 Chamber’s working definition of sustainable livelihoods 290
9.5 Measures to be undertaken to meet MDG1 297
9.6 Indicators for monitoring and evaluation 317
9.7 Factors for comprehensive quality systems 318
10.1 Linking of functions 329
10.2 The importance of Business 333
10.3 Decentralization 338
10.4 Three distinct strands which shape redistributive strategies 345
10.5 Mining Sector Background 359
10.6 Potential Mining Contribution 361
11.1 Issues to be incorporated for capacity building 377
11.2 Turning resources into products 380
23
11.3 Examples of natural resources in provinces 383
11.4 Costs of Attaining the MDGs 386
11.5 Innovative dreams 388
11.6 The benefits of irrigation 392
11.7 Examples of lack of value addition in Zambia 393
11.8 Trade 395






24
MAP OF ZIMBABWE
PROVINCES







INTRODUCTION

Most understand that the real terror is poverty,
from which some 24,000 people die every day.
John Pilger

This study will attempt to come up with solutions for the eradication
of poverty in the rural regions of Zimbabwe. I chose to focus this
research on rural areas of the country because 75 percent of
Zimbabweans reside in the rural regions as follows: resettlement
areas, farms, villages or growth points. Furthermore, most of the
natural resources are found in the rural regions. I will concentrate
this study on villages where most households do not have access to
financial resources and gains. In order to minimize social and
economic problems, eradicating poverty in rural areas will further
help to create employment or income generating activities outside
cities and towns; to reduce immigration from rural areas into urban
centers; to improve the standard of living of those living in poverty
who predominantly live in rural areas; and to expand the markets in
the country.

This paper will focus mainly on the projects and programmes
implemented in Zimbabwe by the World Bank, the United Nations as
well as the Government of Zimbabwe with a view to meeting the first
objective of Goal 1 of the eight Millennium Development Goals which
is to “eradicate extreme poverty and hunger”. Furthermore, the
nongovernmental organizations’ activities and aid from European donors
towards the eradication or alleviation of poverty in Zimbabwe will be
examined. We will concentrate on eradicating individual poverty
thus addressing target 1 of Goal 1 of the MDGs as listed in the
Zimbabwe Millennium Development Goals 2005 Progress Report.

The definition of poverty differs based on different studies and the
objective behind the study. Regardless, poverty is a social, moral,
political and economic problem, thus it should be resolved keeping
its effects in mind at the household, national and international level.
It is a state that has been debated for several centuries in different
disciplines of most societies. In the eighteenth century, Adam Smith
clearly stated that ‘poverty is relative’ which is true because the
characteristics of poverty vary from one household or society to
another. In most cases priorities and poverty measurements are very
27
different from one society to the other, also depending on the state of
industrial development.

Developed countries were once poor and had poor people in their
societies; all still have poor people in various percentages and
degrees. In developing countries, poverty and penury is still a
challenge in this century. The seeds, fruits and complications of
poverty are some of the issues which have been of great debate.
There have been successes to resolve the challenge in some countries
and minimal or no success in other countries or regions. France,
after World War II, went through a period of poverty, particularly
food poverty but its “planification” programme set up business
structures that enabled the country to be the second largest
economy in Europe today. The French plan centered on industries
in six main sectors of the economy not only for economic growth but
for employment creation which provides income for people to live out
of poverty.

Some individuals have a tendency to accept poverty as a state in
existence, assuming it as the way of life and such a way of life that
cannot be changed. On the other hand, some activists believe that
poverty should be at least alleviated. If certain factors in life should
be accepted as is, then there would be no reason to improve our
societies and plan for development. We need to realize the terror that
poverty contributes to individuals, families, societies and the world
at large in order to be motivated to implement strategies that are
suitable for the challenges that are unique to each of our societies.
Some of the atrocities committed globally are executed by people who
live in poverty. Furthermore, ‘poverty is a terror that kills’ a lot of
people on a daily basis the world over thus inducing the need to
eradicate it.

Several global conferences against poverty have been conducted over
the years indicating that poverty is an international problem. The
culmination of the conferences brought forth the goals listed in the
Millennium Declaration adopted at the Summit of September 2000
which were recorded as the Millennium Development Goals (MDGs).
“In international politics, and to a certain degree in the collective
consciousness as well, it is perceived as a global phenomenon which
28
1concerns the whole world as a whole.” Poverty requires
international efforts in order to eradicate it. Nevertheless, poverty
can not be solved with the same strategies though the frameworks
might be similar.

There are numerous players who have and are trying to alleviate or
eradicate poverty in developing countries. The focus on poverty
solutions in the past has been to alleviate it yet today we are
refocusing on eradication as reinforced by the MDGs and new
millennium approaches. Multinational institutions, private
institutions, individuals, non-governmental organizations, developed
country governments, local governments are all involved in various
projects and programmes to alleviate or eradicate poverty. The task
to eradicate poverty has been handled distinctly in different
countries over the centuries. For example, in Mozambique the
national government together with the Bretton Woods Institutions
(BWIs), the World Bank (WB) and the International Monetary Fund
(IMF), has put in place strategies to reduce poverty as detailed in the
Poverty Reduction Strategy Papers (PRSPs). The PRSP approach
addresses poverty so as to meet MDGs through actions that
contribute to macroeconomic growth. The diversified approaches to
solve the problem reflect that nations and the conditions they face
are not similar. The diversified conditions of different states should
dictate the manner in which poverty issues ought to be managed.

We recommend that we refocus on strategies that concentrate on
eradicating poverty and not just on improving a specific target. In
Bangladesh, private institutions, like the Grameen Bank, have
disbursed micro loans which have improved the lives of villagers in
the area that it is currently operating in. The challenge is basically
on how to coordinate the efforts of all actors involved in the
eradication of poverty, in any given country. Does the World Bank
know what and how the United Nations or national governments are
strategizing to eradicate the problem? It is important that efforts are
pulled together towards one objective.

We need to implement poverty eradication strategies to improve the
lives and restore dignity to people living in poverty in a number of
countries. Francesco da Barberino, an Italian poet in the fourteenth

1 Bronislaw Geremek, ‘Poverty: A History’, 1994, p:245
29
century, said that “death does not rob man of his dignity or his
2virtues, but poverty does”. It is one of the main reasons why states
and multilateral institutions continue to fight poverty, in order to
improve the dignity of citizens, ultimately improve the wellbeing of
the nation. The problem of penury has existed time immemorial and
seems as if it is an animal that can not be brought down.

France solved its poverty problem well before the MDGs were
adopted. Zimbabwe also started implementing strategies towards the
alleviation of poverty in 1980, the year it gained its independence.
Those strategies have enabled some individuals and households to
improve their standard of living. Poverty as a state has existed well
before the MDGs yet some nations eradicated it without the
guidelines contained in the goals but with the collective approach
which states still need today. The collective approach refers to the
activities which are coordinated collectively by the multilateral
institutions together with national governments. Although the
international collective approach to eradicate poverty is necessary to
a certain degree, we should respect the duty and the primary role of
each state to solve the problem in its sovereign territory.

The World Bank was created after World War II to rebuild
infrastructure when it was realized that lack of economic s was affecting markets and had increased poverty.
Loans disbursed by the World Bank enabled a lot of countries to
eradicate poverty by strengthening industries that provided
employment. Money as an instrument was disbursed as loans to the
French government and that contributed to the elimination of
poverty and it is still the same instrument utilized by Grameen Bank
today. We will need the same instrument to eradicate poverty in
Zimbabwe. However, disbursing money without proper identification
of industries and programmes is like sowing seed on rocky ground
where most of the seeds might not germinate. We need to have
proper strategies for maximum utilization of funds and to achieve the
objective otherwise the efforts to eradicate will come to naught. It is
therefore necessary to focus on empowering individuals through
business programmes financed with loans.


2 Bronislaw Geremek, ‘Poverty: A History’, 1994, p:31
30
Goal 1 of the MDGs states that we need to “eradicate extreme poverty
and hunger.” Therefore, eradicating poverty should be the ultimate
goal and structures should be put in place to achieve the specified
objective. We should bear in mind that the bottom line is not to
alleviate but to eradicate poverty. We have to focus on eradicating
poverty, thus, the plans and instruments should concentrate
towards achieving this objective which will simultaneously alleviate
the problem. We should tailor strategies that are suitable for each
country and support the framework designed taking into
consideration that MDGs are new and no one really knows the
perfect way to meet them all. However, we know the route that other
countries have taken to eradicate poverty and that route of loaning
or micro finance facilitated the achievement of the objective.

Our hypothesis is that previous strategies to eradicate poverty have
been inadequate and have been externally driven. We therefore
propose to tackle the problem through home-grown business
approaches. This paper will propose that in order to meet the MDGs
and sustain lives on a long-term basis, business strategies are the
key to combating poverty. Business strategies will involve
sustainable funding of projects from local resources, that is,
resources instituted and coordinated in Zimbabwe.

The study will contain three major sections as follows:

Section I will be devoted to the working definition of poverty; an
analysis of Zimbabwe as a country will provide us with an overview
of the resources that can be exploited so as to enable us to propose
home-grown approaches to eradicate poverty.

Section II will deal with actors involved in fighting poverty since the
year 2000: the Government of Zimbabwe, the United Nations, the
World Bank, European Donors and development aid provided, and
Non-Governmental Organizations.

Section III will suggest poverty eradication programme frameworks
and recommend local funding and disbursement systems in relation
to poverty eradication. Also, it will suggest business strategies to be
engineered, implemented and controlled by a local institution that
will fund the business projects from home sourced funds.

31

SECTION I









POVERTY – A PHENOMENON UNDER STUDY











It is therefore necessary that the poor should exist;
nevertheless, paupers [miserables] should not be allowed to exist;
for while the former constitute an integral part of the political economy,
the latter bring nothing but shame to humanity.
Philippe Hecquet











CHAPTER 1

POVERTY: THE CHALLENGE

Poverty, in the absolute sense, refers to a condition of acute physical want-
starvation, near starvation, or a diet conducive to malnutrition and disease;
lack of clothing or shelter necessary for protection from elements;
absence of minimal medical services.
Daniel P. Moynihan


1.1 OVERVIEW

The quote by Philippe Hecquet makes reference to the difference
between absolute poverty, that is penury and relative poverty. The
quote demonstrates that penury “robs man of his dignity and his
virtues”; thus it “brings nothing but shame to humanity”. Moynihan
clarifies what absolute poverty is by relating it to the “condition of
3acute physical want” of the main elements of life.

Poverty is the state of being poor and the condition continues for a
certain period of time. Absolute poverty is the condition of lacking all
or most of the basic needs required for survival by a human being.
Relative poverty “may be attributed quite freely to a wide range of
populations whose income or other circumstances are adjudged to be
lower or worse than those of other populations, specified or
4unspecified.” The notion of relative poverty refers to having
material things less in comparison to others within a given group.

The poverty research we conducted in Zimbabwe exposes the
confusion which at times exists in societies on the difference between
what some people think poverty is and what governments deem as
poverty. The economic challenges that existed for about 8 years now
have seen some individuals and households adjust their standard of
living but not necessarily living in poverty. The adjustment is seen
by some who have been affected as poverty thus indicating the
problems of the definition of poverty.

The United Nations General Assembly adopted time-bound goals and
targets as stated in the Millennium Declaration that should guide

3 Daniel P Moynihan, ‘On Understanding Poverty’, 1969, p: 265
4 Ibid, p: 265
35








stakeholders in developing countries to enable them to achieve the
millennium objectives by 2015. The eight goals are:

Box 1.1 Millennium Development Goals (MDGs)
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV / AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Create a global partnership for development with targets for
5 aid, trade and debt relief.

Targets are crucial in the achievement of objectives. We should
however bear in mind that although poverty exists in almost all
developing countries, the state of poverty in those countries differs
from one country to another. It is because of these differences that
national governments have adjusted the targets to suit local
conditions.

Poverty targets should be set taking into account that some of the
infrastructures towards eradicating poverty are not in equilibrium
from one nation to another. Economic and social infrastructures are
certainly not identical and this invokes the need to differentiate
strategies to suit local conditions. Even within the same country,
there is a need to have targets and approaches that suit specific
community conditions.

In Zimbabwe, two targets were set for Goal number 1 differentiating
the two problems: poverty and hunger.











5 http://www.undp.org/mdg/basics.shtml
36
Table 1.1 Zimbabwe’s poverty targets
Target 1 Target 2
a) Halve, between 2002 and 2015, the a) Halve, between 2002 and 2015, the
proportion of people whose income is proportion of people who suffer from
less than the Total Consumption Poverty hunger
Line (TCPL) b) Reduce by two-thirds, between 2002
b) Halve, between 2000 and 2015, the and 2015, the proportion of under-five
proportion of people in Human Poverty, children who are malnourished
as measured by the Humarty
Index (HPI)
Indicators: Indicators:
1. Percentage of people below the TCPL 3. Percentage of the population below the
2. Human Poverty Index (HPI) Food Poverty Line (FPL)
4. Percentage of under-five children that
are malnourished
5. Proportion of under-fives having at
least three meals per day
6Source:

The idea of targets is to set the goal that needs to be achieved, the
timeline for the achievement of the goal and the necessary steps and
tools required in order to achieve the goal by breaking the steps into
achievable results at each stage of the process. The targets for
Zimbabwe do not provide for the process that will lead to the
achievement of the target, neither does the process show the
financing required and budgeted to contain the problem. How will
poverty be halved by 2015?

A few other countries, for example, Ghana, Tanzania, Mozambique
like Zimbabwe, do not indicate the necessary steps and tools which
will be applied so as to achieve the objectives by 2015. The
Mozambican government, for example, prepared the “Action Plan for
the Reduction of Absolute Poverty for 2006-09 (PARPA II) [which] is
intended to reduce the incidence of poverty from 54 percent in 2003
7to 45 percent in 2009”. Poverty is a surmountable problem which
requires specific targets for it to be overcome. These targets must be
linked to both the strategies and process to achieve the goals. We
emphasize that it is important to have guiding steps and assessment
procedures for the specified targets at each stage of the eradication
chain.


6 Government of Zimbabwe, UN ‘Zimbabwe MDGs 2005 Progress Report’, 2005, :
p 4
7 Republic of Mozambique, ‘PARPA II’ 2006, p: 1
37
Poverty conditions transform with time as states develop
economically and as the world economy changes. The current
process of globalization makes the challenge of poverty eradication
even more complex. The complexity comes due to the
interdependence of countries and the global population in areas like the
economy, social, political, cultures. Extra attention and effort is
required to understand other global players in an area of interest
compared to the previous decades. Also, the pace of life and
technology is quickening the process of most factors in life.

Governments have to keep such challenges in mind as they seek to
empower national citizens. For example, China concentrated on
improving the standard of living for its nationals by slowly opening
its own markets to imports yet its exports were huge. “China’s
economic growth which was based on exports, has lifted several
8hundred million people out of poverty.” The attitude adopted by
China indicates that governments always focus on possible solutions
that improve lives of their citizens first and foremost. It is the
government’s primary role to ensure that its citizens have an
acceptable standard of living. The challenge for governments is to
ensure that the employment rate does not decrease since
employment is the main source of income for most citizens in almost
all countries. Retaining their jobs will enable these people to
maintain or improve on their decent living standards.

1.2 SCOPE OF POVERTY

Box 1.2 View towards the poor

“Two ways of seeing the poor – as beasts and as criminals – lay at the root of the
repressive measures and discriminatory social programmes which were aimed at
them…In the last few centuries, however, and especially with the humanitarian
thideals of the 18 century, such attitudes coexisted with equally strong attitudes of
9compassion towards the poor.”

We have limitless approaches to the definition and subject of poverty.
Some approaches focus on the levels of poverty internationally,
nationally, at community or individual levels. Other approaches look
into factors that are linked to poverty like social, economic, cultural.
In the past, we had the problem of approaching poverty from one

8 Joseph Stiglitz, ‘Making Globalization Work’, 2006, p:10
9 Bronislaw Geremek, ‘Poverty: A History’, 1994, p: 240 & 241
38
discipline of study without considering the multi-facets of poverty.
“Beyond (the) simple failure to take into account relevant portions of
the historical record, there has been an error that is more difficult to
describe: a failure to think about poverty in dynamic, or longitudinal,
terms; a failure to conceive it as a status that people enter and leave
10over time,” Today, in most cases, both the level and factors of
poverty are recognized, thus confirming the multidimensional scope
of poverty.

Regardless the countless approaches, two key features have to be
accommodated as we handle the issue of poverty: inadequate
financial resources to meet basic needs and the distinction of the
state of poverty. The extent of the factors that define, shape and
control poverty is quite varied from one society to another. Since the
factors are varied, it only makes sense that governments directly deal
with the matters that pertain to the eradication of poverty in their
own territories but with international support. The multidimensional
scope of poverty requires concerted focus that can treat the causes of
the problem.

The other matter of concern is exposed by the global economic crisis.
The onset of the economic crisis of 2008 has put millions of people in
fear of poverty or becoming poor. The global terror of poverty has to
be eliminated also through regulations that control people who make
decisions that might create economic crises. Without laws or
regulations, a person is not controllable.

Poverty robs people of every fiber of their dignity and decency and
the motivation to breakthrough out of it. When poverty strikes, it
can kill physically, morally, emotionally, even economically. Since
the problem sneaks its way into every thread of life, making it a
complex phenomenon, it therefore requires harmonized synergies to
uproot it. The scope of poverty extends to include various other
factors of society creating multidimensional impacts: lack of
availability of capital, increased crimes, health problems, lowered
industrialization, reduced trade, stunted infrastructure development,
et cetera. The factors to be considered when planning strategies to
eradicate the problem should include: the physical infrastructure in
the country, education systems, the trading system of goods and

10 Daniel P Moynihan, ‘On Understanding Poverty’, 1969, p: 161
39
services, access to financial resources, natural resources available in
the territory, the differences in each community in a given country.
We cannot apply the same remedy for all countries or even
communities because the levels and factors of poverty are different in
each given area. Therefore, the strategies should be differentiated.
Just like in business, applying the same strategy to every problem
does not necessarily work. The main concept of the plan of action
can be similar however adjustments have to be made to suit the
challenges in each territory.

To be able to deal with the phenomenon better, it would be best to
encourage local people to handle their own problem with national
and international assistance. Since the strategies to be implemented
will be carried out by the population of the given state, it is therefore
necessary to allow them to handle the action plan to make it their
own. The experience of Bangladesh is worth noting. There,
Grameen Bank involved villagers in the process of implementing the
micro loaning approach and the projects that generate income. This
approach created micro-credit instruments which are available to the
poor in the villages. The Bank set up structures that avail loans to
the poor and repayment procedures that involve villagers. Such an
active approach allows people to personalize the whole eradication
process and programme. This, in turn, influences individuals
involved to be directly committed to the process and success of the
programme.

There is the “emerging view which focuses on the concept of pro-poor
11growth.” The concept encourages the adoption of government
policies and programmes which concentrate on reducing inequalities
by creating employment and income generating activities which
target the poor. With reference to Sen’s capability definition, it
means that all groups of citizens should have their capabilities taken
into consideration in order to allow them to have median earnings
that permit human development. With this concept in mind, it
makes more sense to prioritize individual growth as the initial step to
poverty eradication. The initial approach implemented by the
Government of Zimbabwe is similar to that of France which focused
on ‘education for all’ as the first strategy towards pro-poor growth
policies. However, a sustainable pro-poor growth strategy would be

11 Richard Kohl, ‘Globalisation, Poverty and Inequality’, 2003, p14
40
x
x
x
x
x
more effective if it is linked to income generating programmes either
through employment or self-employment projects. The challenge is
that such an approach would require massive financial resources
which most developing countries do not have.

1.3 THE NATURE OF POVERTY

In order to eradicate poverty, it is paramount that the nature of
poverty is clearly understood. The multidimensional factors which
are correlated to the different fields of society should be taken into
consideration in order to implement solid programmes. The
differences that exist manifest themselves, as well, when it comes to
the scope and nature of poverty; hence, the necessity to differentiate
the eradication programmes.

Individuals or families get into poverty due to various reasons: “the
vicious cycle, in which poverty breeds poverty, occurs through time,
and transmits its effects from one generation to another. There is no
12beginning to the cycle, no end.” Apart from those who get into
poverty as a result of the vicious cycle, other factors that cause
poverty include:
Social factors due to the death of the family bread winner
Natural disasters: droughts, floods, earthquakes
Economic growth: when the economy does not grow at the
expected level or there is recession, inflation or trade
shrinkage
Unemployment: industries scale down or close; or
investments are limited
Political instability: creates uncertainty or ignites a war

1.3.1 CONSUMPTION POVERTY

Adam Smith in The Wealth of Nations links economic poverty to
necessities, thus introducing the notion of Consumption Poverty. He
states what economic poverty is and that it varies from country to
country; “by necessaries I understand,…..not only the commodities
which are indispensably necessary for the support of life, but
whatever the custom renders it indecent for creditable people, even

12 Daniel P. Moynihan, ‘On Understanding Poverty’, 1969, p: 9
41
13the lowest order, to be without.” This emphasizes that each
country has to decide what it considers to be the scope and
measurement of poverty and therefore the programmes that are
targeted towards its eradication by providing the identified
necessaries.

In Zimbabwe, the Total Consumption Poverty Line (TCPL) definition
of poverty “gives the amount of income required to purchase a basket
of food and non-food items (clothing, housing, education, health,
14transport, etc) by an average person per annum.” This is intended
to set the minimum level of income required in order to meet basic
needs. Though we have global similarities on the factors of
consumption poverty, the availability and prices of the products in
the basket differ from one state to another.

1.3.2 INCOME POVERTY

Income Poverty is the lack of earnings to live an expected standard of
living considered to be comfortable in a given society. In most
societies, income is used as the appropriate method to measure
poverty, using the Gini coefficient. (It is from this factor that
minimum wages are derived). “The Gini coefficient is a measure of
statistical dispersion most prominently used as a measure of
inequality of income distribution or inequality of wealth
15distribution.” The Gini coefficient reflects either a more equal or
unequal distribution of income. Developed in 1912 by an Italian
statistician, Corrado Gini, it is commonly used in rating systems for
credit risk management.

In Zimbabwe, the Food Poverty Line (FPL) “gives the amount of
income required to buy a basket of basic food needed by an average
16person per annum.” Some researchers have argued that it is not
the best method to measure the comfort of families and individuals
since the number is used to measure the whole population. Thus,

13 Peter Saunders, ‘Towards a Credible Poverty Framework’, 2004, p: 5
14 Ministry of Public Service, Labour and Social Welfare, ‘1995 PASS-Main
Report’, 1995, p:xix
15 http://en.wikipedia.org/wiki/Gini_index 20 October 2007
16Labour and Social We
Report’, 1995, p:xix
42
instead of using income, some critics feel that using consumption as
a measurement is more appropriate and more accurate.

1.3.3 HUMAN DEVELOPMENT

The international development community suggested “that inequality
and poverty must be seen as multi-dimensional, including not just
income but also individuals’ health, nutrition, and even civil rights
17and political freedoms.” The approach was created as a result of
the awareness campaigns by the Habitat and Agenda 21 conferences.
Sabina Alkire states that “human development is the process of
expanding the freedoms that people value and have reason to
18value.” Notably, freedoms are necessary for citizens, however, we
should situate them to a different step of the ladder of human
development. We should imagine what the priorities and preferences
would be if we were to ask people in poverty to equate: food, health,
economic opportunity, political freedom, et cetera. It would be an
interesting approach to imagine at each step of human development
how and what instruments would be applied by the poor towards
poverty eradication.

According to the founder of the Human Development Report,
Mahbub ul Haq, “the basic purpose of development is to enlarge
people’s choices…People often value achievements that do not show
up at all, or not immediately, in income or growth figures: greater
access to knowledge, better nutrition and health services, more
19secure livelihoods, security against crime…” . This clarifies the
concept of the human development index (HDI) which measures the
average progress of a country in achieving development. The Human
Development Index measures the proportion of people who live below
the expected level as indicated by: probability at birth to survive to
age 60, the adult literacy rate, long-term unemployment, and the
population that lives below 50 percent of the median income.
According to the United Nations Development Programme (UNDP) the
HDI widens the options of individuals giving them opportunities for
the various issues that concern them. “The objective of development

17 Richard Kohl, ‘Globalisation, Poverty & Inequality’, OECD, 2003 p:12
18 Sabina Alkire, ‘The missing dimensions of Poverty Data’, Oxford Development
Studies, 2007, p:347
19 http://hdr.undp.org/en/humandev/21 January 2009
43