government expectations.43 There was only a 1,2% rise in formal employment between 1991‐
1996. Nor did ESAP’s successor ZIMPREST improve the economic situation. Formal sector
employment went from a 1998 peak of 1,24 million to 1,01 million by 2002. Between 1998
and 2006, the GDP shrank by 37%.
Thus, over the decade prior to OM, “rather than the formalization of the non‐formal sectors of
the economy that one would expect from any development process, it is the informalisation of
the formal sector that has occurred in Zimbabwe, such that by 2004, four out of every five jobs
in Zimbabwe were to be found in the informal economy.”44
4. The informal economy: 2005 2010
While supposedly intended to eradicate it, predictably OM resoundingly failed to dent for
more than a moment, the informal sector and the parallel market. In fact, OM together with
other political and economic crackdowns, simply exacerbated pre‐existing conditions for
economic decline, by further undermining investor confidence and driving potential
consumers into dire poverty, thus shrinking the purchasing base and the manufacturing
sector.
The numbers of people driven out of formal and into informal employment continued to grow
over the next few years. Even in October 2005, within months of OM, Afro Barometer found
that 68% of those who had had businesses destroyed by OM were back buying and selling
goods, while 10% of those who had not been in informal employment prior to OM, were now
working in the informal sector.45 A 2006 study in Glen View suburb of Harare, which was
badly affected by OM, found one year later that 88% of people were employed in the informal
sector, a notable increase over the October 2005 estimate.46 Furthermore, the vast majority of
these were engaged in individual vending businesses rather than in any kind of
manufacturing. The De Doorns Case Study in this report also illustrates the diversity of
employment that existed in 2005, and the lack of diversity as time passed; teachers, nurses,
artisans and people in formal employment were reduced to vending or part time menial
labour in the diaspora as salaries in the formal sector became eroded by hyper inflation.
The burgeoning informal sector in Zimbabwe is indicative of “high levels of ‘desperate
employment’ and of the frenzied search for coping mechanisms amidst vertiginous rates of
economic regression”, rather than of an environment conducive to small enterprises. This
2006 finding of up to 88% of people in the informal sector can be compared to the figure of
80,7% of people estimated by ILO to be in the informal sector in 2004, the year before OM.47
Harassment of the informal sector, and the general context of cataclysmic economic and
43 Ibid: all figures in the paragraph from this UNDP report. It is beyond the scope of this report to dwell on ESAP
and the causes for its failures. UNDP makes the point that the measuring of economies is highly contentious, with
differing approaches to quantification making absolutism impossible. However, there is no doubting the general
trends in Zimbabwe over the last two decades.
44
Kanyenze, Godfrey (2010): Labour Markets and the Rebuilding of Human Capital; UNDP Working Paper 3,
Comprehensive Economic Recovery in Zimbabwe; page vi.
45 Afro Barometer [2006]; Popular Reactions to State Repression: Operation Murambatsvina in Zimbabwe;
Working Paper No 59; Page 12.
46 Luebker, M [2008]: Decent work and informal employment: A survey of workers in Glen View, Harare. Issues Paper
No.33. ILO Sub-Regional Office for Southern Africa, Harare. Cited in: UNDP (2010), Working Paper 9, op cit.
47 Luebker,M: Employment, Unemployment and Informality in Zimbabwe: Concepts and data for coherent policymaking. Issues Paper No.32. ILO Sub-Regional Office for Southern Africa, Harare, 2008. Cited in UNDP, ibid.
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