Robert Mugabe's Policies - ESAP

During Robert Mugabe's presidency, he put up new policies in aims to restructure and improve the country's poor economy. One of the most famous policies he set up is known as the ESAP or Economic Structural Adjustment Program.

Economic Structural Adjustment Program

In the year 1980, Zimbabwe's leader Mugabe started a program for post-war reconstruction. For the last two decades, Zimbabwe attempted several economic reform programs. In 1990, one of the most famous policies by Mugabe was the 5-year plan - ESAP. The ESAP included policies such as:

• The removal of controlled prices. An example is that the government slackened price restrictions for farmers, which means that they are allowed to decide the prices for their own productions. 
• The removal of wage controls. An example is that the government made a new system where government officials could have self-awarded pay raises.
• Reduction of government expenditures that benefits the society
• Devaluate the Zimbabwean dollar by 40%

Zimbabwean Dollar. Source: http://upload.wikimedia.org/wikipedia/commons/3/3c/Zimbabwe_Hyperinflation_2008_notes.jpg

• The removal of subsidies on essential, basic consumer goods. Subsidy is a sum of money granted by the state to help an industry or business keep the price of a commodity or service low (dictionary.com). This means that basic consumer goods' prices have risen making it hard for the poor population to be able to obtain their basic needs. 
• Liberalisation of foreign currency allocating system
• The removal of protection policies of non-productive import industries. This policy worsened their foreign relations with other countries as most of the foreign industries did not have the protection they deserved. 
• Restructuring or public enterprises and parastatal organisations. Parastatal organisations are those that have political authority and indirectly benefits the society, and serves the state. During the year 1991, the government set a time frame to quickly reduce support to these type of organisations, in aims to "save" money. 

According to Mugabe, the objective of his ESAP program was to improve efficiency, managements and the privatisation of public enterprises in Zimbabwe. However, it proves to be that the ESAP did not benefit Zimbabwe in any way, instead it caused even more problems economically and socially (see next page!)