2 The Urbanization, Housing and Local Governance Crisis in Zimbabwe From a human settlements perspective Operation Restore Order did not occur in a policy vacuum. It can be seen, in many ways, as a genuine attempt, albeit a misguided reaction, to cope with rapid urbanization and urban governance. Two distinct periods can be discerned: the first phase starting in1980, and a second phase starting in the late 1990s to the present. 2.1 Rapid Urbanization, the Impoverishment of Cities and Poor Policy Responses The transition to majority rule in 1980 saw the lifting of decades of racial restrictions to the “Right to the City”. The urban population of Zimbabwe rose rapidly from 23% in 1982 to 30% by the early 1990s. This trend, typical of many developing countries, can be described as the “challenge of rapid urbanization” whereby people migrating to urban areas improve their livelihoods in terms of income opportunities and access to social services, while cities, as economic units, witness impoverishment. This impoverishment arises from two inter-related phenomena. First, many migrants to the city operate in the informal economy, despite their active contribution to the urban economy, and they rarely pay taxes or fees in direct proportion to the services they use. Second, most local authorities depend to a large extent on central government transfers which rarely increase in proportion to demographic growth, thus contributing to declining municipal revenues and expenditures in per capita terms. This vicious circle translates into a serious erosion of local government capacity in terms of planning, environmental management and the provision of basic services. Table 1: Comparative Levels of Urbanization Africa Asia LAC Zimbabwe Level of Urbanization % 2000 2010 2020 37.2 42.7 47.9 37.5 43 48.7 75.4 79 81.8 35.3 42.5 49.1 Urban Population (000) 2000 2010 295,228 425,596 1,375,519 1,783,600 391,342 469,755 4,459 6,380 2020 589,408 2,231,108 543,166 8,652 Source: Global Report on Human Settlements 2003, UN-HABITAT Zimbabwe is no exception. The major cities of Harare, Bulawayo, Mutare and Gweru attained population growth rates of over 5% per annum throughout the 1980s. This strained the capacities of both central and local spheres of government to provide housing and basic urban services for the urban poor. A series of events, starting in the 1990s, further contributed to the dramatic decline of Zimbabwe’s cities. These included: a. A failed attempt at Economic Structural Adjustment (1991 to 1995) which led to contraction of the civil service, the collapse of the domestic industrial sector, and to massive layoffs; b. A bitterly disputed Fast Track land reform programme (since 2000) which resulted in the transfer of land mostly from experienced white commercial farmers to inexperienced 22