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TheRepublic of Zimbabwe (formerlySouth Rhodesia (1911-1964, 1979-1980),Rhodesia (1964-1979), andZimbabwe Rhodesia (1979)) is a landlocked country locked in the southern region ofAfrica.[1] It shares borders with TheRepublic of South Africa,Botswana,Zambia, andMozambique.[1] Upon gaining independence in 1980, the new regime (underRobert Mugabe), sought to replace many of the institutions established by the previous white rule.[1] Many of the new regime's actions, likeland reform and involvement in TheDemocratic Republic of the Congo's civil war, have been the source of the state's economic[1] failure.
TheWorld Bank Group currently estimates that extreme poverty has risen from 29% to 34% from 2018-2019 (4.7 million to 5.7 million).[2] The production of food was weakened by anEl Niño-induced drought, as well asCyclone Idai affecting three sectors that accounted for 30% ofZimbabwe's agricultural production.[2] As a result, the World Bank estimates that one out of every ten rural households are going without food for an entire day.[2] Since 2018, the production of minerals in Zimbabwe has decreased by 27%, and agriculture has decreased by approximately 50%.[3] Other issues such as shortages inforeign currency, fuel, and electricity have contributed to the country's economic failure.
Inflation is also a large issue for Zimbabwe, reaching 230% in July 2019 from 5.4% in September of 2018.[2]Food prices have risen 319% and non-food inflation has reached 194% since 2018.[2] CurrentWorld Bank Group andInternational Monetary Fund involvement is done in hope that the government can adjust their fiscal practices in order to alleviate the cost its citizens are paying. However, the World Bank fears that political and social pressure will exacerbate Zimbabwe'smacroeconomic instability.[2]
Between 1980 and 2000, the World Bank Group has totaled up to $1.6 billion in assistance to Zimbabwe.[4] Due to non-payment ofarrears, lending was suspended after 2000, but the World Bank has remained involved using non-lending instruments and trust funds.[4] Zimbabwe's debt to the World Bank currently values at $1.5 billion, and $1.3 billion of that is debt inarrears.[4]
The World Bank has created several trust funds for Zimbabwe, including: The Zimbabwe Reconstruction Fund (ZIMREF), the Zimbabwe Analytical Multi-Donor Trust Fund, the Multi-Donor Health Results Innovation Trust Fund-Global Financing Facility (HIRTF-GFF), the State and Peace-Building Fund, the Global Environmental Facility Trust Fund, and Cooperation in International Water.[4]
In addition to these trust funds, theIDA allocated $72 million for a crisis project in response toCyclone Idai.[4] The Global Financing Facility also supportsresults-based financing in rural and urban areas to improve the health sector, as well as maternal and child health in Zimbabwe.[4]
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The result of the suspension of international lending to Zimbabwe is the creation oftrust funds by the World Bank. This is done to maintain support for the vast economic and social difficulties the country faces. The international lending picture since 2015, updated by theWorld Bank Group in 2019, shows thatZimbabwe received $0 in 2015, $53 million in 2016, $2 million in 2017, $5 million in 2018, and $3 million in 2019.[4] The current projects being conducted inZimbabwe began in 2015-2016, and were mainly done through the Zimbabwe Reconstruction Fund (ZIMREF).[4] These projects include:
Several improvements have been recorded by theWorld Bank as a result of trust fund efforts.[5] As of June 2019, 800,000 women have received professionalhealth care, and 817,000 and a total of 911,677 children have completed theirimmunizations due to the projects in thehealth sector. Regular quality and care assessments take place, and they are averaging a score of 85% when they were previously seeing results in the 75% range. There has also been a 12% increase in successful births and postnatal care.[6]
The World Bank's effort in implementing fiscal practice workshops forgovernment ministries has extended from three ministries to 22 ministries and all local authorities necessary. Though the Water Project, water availability and quality has improved inZimunya,Lupane, andGuruve. Once everything is complete, the World Bank estimates that 17,000 people will have benefitted from the project.[6]
Other areas of improvement would include: The education component (awaiting the finalization of the Teaching Professions Bill); the corporate sector (enhancing corporatetransparency and accountability); poverty monitoring (updated and refined the Poverty Income Consumption and Expenditure Survey; creating data systems that can process micro-data); and theProcurement Project (Modernization of procurement laws and the development of government procurement strategies). The Procurement Project was set in motion on June 3, 2019 and reporting has been enhanced; there has also been improved coverage of internal audit inCentral Government with 87% of the audit work plan completed.[6]
