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USAID Information:
External Links:
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Zimbabwe
The Development Challenge: Zimbabwe is now in its fifth consecutive year of severe economic contraction, precipitated by a political crisis that has embroiled the country since 1997 and aggravates an already worrying social context. Zimbabwe's hopes for economic and social recovery lie with a comprehensive approach that includes the restoration of the rule of law and the reintroduction of sound monetary and fiscal policies. The protracted impasse in Zimbabwe's political arena, however, is setting up the country for a prolonged recovery process. Despite efforts by key players to broker negotiations between the ruling party and the major opposition party, the political stalemate continues and the government has continued to suppress, directly or indirectly, any form of dissent from the opposition party, independent press, the labor movement, or civil society.
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Zimbabwe's economic indicators have worsened over the past year, and the outlook is bleak. Gross Domestic Product (GDP) declined by a record high 13.2% in 2003. The foreign currency shortage remains critical (foreign currency earnings declined from $2.2 billion in 2000 to an estimated $200 million for 2003). A loose monetary policy and an artificially high official exchange rate ($824 Zimbabwean dollars to one U.S. dollar) have resulted in a parallel market rate for the currency as high as Z$6,000 to $1. At a conservatively estimated rate of 620%, Zimbabwe's inflation is the world's highest. Most of 2003 was characterized by widespread shortages of local currency, fuel, electricity, and basic commodities. More than 70% of the population live below the poverty line. The World Food Program estimates that over seven million Zimbabweans are in need of humanitarian assistance, and the Government of Zimbabwe (GOZ) has neither funds nor credit to secure required food or other essential imports.
Zimbabwe's once robust social services are collapsing in the face of the economic crisis, the AIDS epidemic, and an alarmingly large exodus of the country's educated professionals. Zimbabwe has one of the highest HIV/AIDS prevalence rates in the world (24.6% of all adults). Life expectancy dropped from 61 years in 1990 to 34 years in 2002. Infant mortality is 76 per 1,000 live births; and under-five child mortality is 123 per 1,000 live births.
The U.S. Government's national interests in Zimbabwe are to restore democratic legitimacy and foster free and fair elections; prevent further deterioration of the political/economic situation and its detrimental regional impact; strengthen prospects for stability by fortifying civil society and democratic institutions; and mount an effective response to both the HIV/AIDS pandemic and the humanitarian crisis.
The USAID Program: The Zimbabwe program focuses on three critical areas: 1) mitigating the HIV/AIDS pandemic; 2) increasing dialogue between the citizenry and selected government institutions; and 3) enhancing access of the most disadvantaged groups (principally in rural and peri-urban areas) to appropriate business and technical services. The program remains subject to the legislative restrictions of the Brooke-Alexander Amendment and Section 620q and, absent a resolution of the political crisis, U.S. policy also restricts direct USAID assistance to the GOZ.
FY 2004 funds will be used to carry out programs in three focus areas. USAID will expand the HIV/AIDS program to address the growing epidemic more comprehensively by implementing behavior change/prevention activities, care and support, and promotion of effective leadership and policy development. Voluntary counseling and testing services will be expanded, balanced behavior change messages will be broadcast, and there will be efforts to ensure reliable supplies of condoms for health clinics nationwide. USAID will expand its support of community efforts for the care of orphans and other vulnerable children, and will support the provision of services for the prevention of mother to child transmission of HIV and antiretroviral therapy for those with AIDS. USAID will help integrate HIV/AIDS activities into existing family planning programs, strengthen the capacity of the public sector and civil society to formulate and advocate for improved HIV/AIDS policies, and support the engagement of church leaders in the fight against HIV/AIDS.
In democracy and governance, USAID is working to strengthen both the demand and supply sides of the democratic equation by supporting civil society organizations (CSOs) and selected government institutions to promote sustainable dialogue and public discourse. Democracy and governance activities focus on: 1) supporting CSOs that demand greater inclusiveness in national-level decision-making through improved advocacy to Parliament; 2) supporting the parliamentary reform program to strengthen the legislative process, the parliamentary committee system and the capacity of Parliament to involve citizens in parliamentary business; and 3) providing technical assistance and training to urban and rural local authorities that are committed to democratic reform.
USAID's economic opportunities program is designed to facilitate income-generating activities for the disadvantaged, mainly communal (rural) area residents, women, under- and unemployed youth, the urban poor, the disabled, orphans, farm workers and households affected by HIV/AIDS. This special objective provides technical training services, including basic agronomic practices such as use of low-cost drip irrigation technologies, and helps establish direct farmer to market (out-grower) contracts.
Other Program Elements: USAID's Food for Peace and Foreign Disaster Assistance offices provide emergency food and other humanitarian assistance. The Office of Transition Initiatives supports freedom of the press, the rule of law, grassroots organizations, and human rights. The American Schools and Hospitals Abroad office supports Africa University, a private university located in Mutare and funded by the Methodist Church.
USAID's regional portfolio includes four activities dealing with natural resource management; three supporting agricultural research and policy development; five supporting the development of Southern Africa regional trade and economic integration; and three encouraging anti-corruption, enhanced legislative processes, and greater media freedom. Due to Brooke-Alexander restrictions, Zimbabwe's participation in these activities has been greatly reduced.
The southern Africa regional HIV/AIDS program focuses on HIV/AIDS mitigation along international trucking routes and at border sites. The regional Famine Early Warning System network supports regional food security monitoring, analysis and reporting in selected countries, including Zimbabwe. The Centers for Disease Control and Prevention (CDC) works with the GOZ to combat the AIDS pandemic and with WHO on other health-related issues.
Other Donors: In addition to the United States, the major non-food aid donors are: the European Union (governance, social services and environment); the United Kingdom (HIV/AIDS, health and agriculture recovery); Japan (environment, self help, HIV/AIDS, reproductive health, education, infrastructure and private sector); and Sweden (HIV/AIDS and democracy/human rights). Smaller programs are implemented by the Netherlands (governance and HIV/AIDS) and Norway (DG, health and education, although their program is now in abeyance). Germany and Denmark have withdrawn their development programs since the March 2002 Presidential elections. Humanitarian assistance is provided by 15 bilateral donors, including the United States, as well as the European Union, the African Development Bank, and the United Nations' agencies.
The International Monetary Fund and World Bank programs remain frozen, principally due to non-repayment of arrears, but the World Bank is now actively exploring options to remain engaged in Zimbabwe through its new program, entitled "Low-Income Countries Under Stress." All but one major bilateral donor have stopped government-to-government assistance, opting instead to channel their aid through non-governmental organizations. The UN family of agencies remains active in Zimbabwe in several sectors (AIDS, health, education, environment and governance). Donor coordination is excellent, especially with respect to the emergency food and humanitarian assistance programs. USAID, in conjunction with CDC, leads the coordination of HIV/AIDS activities in country, and participates in other donor coordination groups.
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