of the informal economy. By 2004, the informal economy was estimated to have accounted for 40% of all forms of employment. The informal economy had effectively become the mainstay for the majority of the urban population, 70% of whom are estimated to be officially unemployed, and 75% living below the poverty line. Another indicator of the importance of the informal economy is provided by associations of informal traders, the biggest one of which has a membership of 1.8 million.38 Besides flea markets, vending stalls and home-based service industries, cities and towns throughout Zimbabwe witnessed the growing phenomenon of street hawkers and makeshift stands, many of which were supplying the same range of goods sold by stores in front of which they plied their business, clearly violating the rights of the formal sector which continued to pay taxes. The Central Business District of Harare was often described by many stakeholders as an eyesore and as totally chaotic. Many middle class persons 39 blamed this situation on the Government. At the other end of the spectrum, formal ties, including sub-contracting, were established between the formal and informal sectors in manufacturing (e.g. furniture-making, wood and metalworking industries), building and construction and between the urban informal sector and the rural economy.40 2.3 Unrealistic Housing Standards The combination of economic decline, rapid urbanization, and poverty growth was also evident in the housing sector. Serious shortfalls in housing delivery were recognised by the National Housing Delivery Policy of 2000 which acknowledged a cumulative backlog of over 1 million housing units. It further recognised the need to adopt a more flexible approach to housing delivery and the lack of security of tenure as a causal factor of the housing crisis in Zimbabwe.41 A subsequent policy document – the National Housing Programme of 2003 further acknowledged the inability of Government to provide decent and affordable housing. It noted that Government plans for housing fell far short of the annual target of 162,000 units between 1985 and 2000 with actual production ranging between 15,000 and 20,000 units per annum. It further noted that the formal sector housing production rate was decreasing and that by 2002 only 5,500 plots were serviced in eight major urban areas compared to an estimated annual demand of 250,000 units.42 Government reiterated the need for a broader response, including incremental housing production as a means of responding to demand which was not foreseen in the law. 2.4 Inconsistencies between central and local government roles and responsibilities A variety of instruments were applied to encourage alternative housing supply. These included the allocation of un-serviced stands (plots) to individuals, housing cooperatives and building 38 Zimbabwe Chamber of Informal Economy Associations Confidential sources. 40 Several studies show the intricate two-way relationship between the urban informal sector and the rural economy that includes the supply of foodstuffs including produce and meat, tobacco and wood from rural areas, and commodities, shoes and clothing, cosmetics, consumables and agricultural inputs, tools and hardware from urban areas. 41 National Housing Policy for Zimbabwe, National Task Force on Housing, Ministry of Local Government and National Housing, February 2000 42 The National Housing Delivery Programme, Ministry of Local Government, Public Works and National Housing, 2003 39 24