Trade in Zimbabwe: changing incentives to enhance competitiveness

World Bank

Trade in Zimbabwe: changing incentives to enhance competitiveness
Format
Paperback
Publisher
World Bank Publications
Country
United States
Published
26 May 2015
Pages
144
ISBN
9781464804465

Trade in Zimbabwe: changing incentives to enhance competitiveness

World Bank

This report traces the roots of this poor performance to several policy issues: poor predictability of macroeconomic policy and economic governance has created an unfavorable climate for private investment and trade; a tariff structure that dampens export profitability; industrial policies - indigenization policy in particular - that undermine investor confidence and inhibits private investment; and finally, competition-limiting policies toward services that limit connectivity of Zimbabweans and raise trade costs. The good news arising from the study is that the remedies for these policy shortcomings lie in Zimbabwean hands. If the government were to adopt reforms that reconfigure economy-wide incentives and trade and industrial policies, it could promote sustained growth, economic diversification and empowerment of poor people.

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