Challenges in the Era of Globalization - iaabd

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Proceedings of the 12th Annual Conference © 2011 IAABD factors of production. In his landmark book The Wealth of nations Adam Smith uses the absolute advantage theory to explain the importance of factors of production and argues that countries differ in their ability to produce goods efficiently. The obvious and easy to understand examples of factors Smith uses to illustrate absolute advantage are all about natural resource endowments like favorable climate and good soils. Building on Smith’s absolute advantage theory, David Ricardo uses comparative advantage argument to show the benefits of labor productivity, suggesting the benefits associated with a country specializing in the production of those goods that it produces most efficiently. Hecksher-Ohlin theory emphasizes that countries differ in the type and quantity of production factors that they possess. The term factor endowments refers to the extent to which a country is endowed with such resources as land, labor and capital. Using the theory of national competitive advantage Michael Porter (1980), explains why certain nations achieve international success in particular industries. Porter acknowledges the importance of factor endowments, but goes on to point out the importance of other country factors. While factor theory affirms the importance of the production factors it is silent on ownership. We make a contribution to the discourse on resource ownership and allocation through a study of two models of land allocation that are part of Zimbabwe’s history. Zimbabwe Background Zimbabwe’s economy is agro-based, relying heavily natural endowments like climatic conditions and type of land and historical influences to grow crops such as tobacco, cotton and sugar cane, and on related manufacturing industries such as textiles and food processing. Mining is also a major activity. A detailed narrative of the colonial, liberation and public policy history of Zimbabwe is beyond the scope of this paper. We include those country facts and historical events that lay the foundation of the land distribution models in this study. Zimbabwe is a Southern African country located between South Africa and Zambia. It is a landlocked country with a total surface area of 390 580 square kilometres, 385 670 sq. kilometres is land and 3 910 square kilometres is water. It is situated between 15 and 22° south latitude and 26 and 34° east longitude. Climatic conditions are largely sub-tropical with one rainy season, between November and March. Rainfall reliability decreases from north to south and also from east to west. Only 37% of the country receives rainfall considered adequate for agriculture. The country has been divided into five broad Natural Regions in which the dominant partitioning factor is rainfall. Agricultural production patterns depend on these natural regions. Natural Region I is a specialized and diversified farming region. The region is suitable for forestry, fruit and intensive livestock production. In Natural Region II flue-cured tobacco, maize, cotton, sugar beans and coffee can be grown. Sorghum, groundnuts, seed maize, barley and various horticultural crops are also grown. Supplementary irrigation is done for winter wheat. Animal husbandry like poultry, cattle for dairy and meat, is also practiced in. Natural region III is a semi-intensive farming region. Large-scale crop production covers only 15% of the arable land and most of the land is used for extensive beef ranching. Maize dominates commercial farm production. The region is subject to periodic seasonal droughts, prolonged mid-season dry spells and unreliable starts of the rainy season. Irrigation plays an important role in sustaining crop production. Natural regions IV and V are too dry for successful crop production without irrigation, but communal farmers have no other choice but to grow crops in these areas even without access to irrigation. Millet and sorghum are the common crops but maize is also grown. A former colony of the United Kingdom, Zimbabwe attained independence in 1980 following elections in 1979. As is characteristic of former colonies, the economy inherited by the Government of Zimbabwe had 352
Challenges in the Era of Globalization Edited by Emmanuel Obuah a number of socio-economic inequalities and was characterised by a highly dualistic structure. On the one hand, there was a modern sector comprising commercial agriculture, mining, manufacturing and service establishments and, on the other hand was a traditional sector dominated by small enterprises, consisting largely of communal farmers and other informal, non-farm economic activities. The economic policy environment prior to independence and for the decade following independence, perpetuated this polarised economic structure, for although the people of Zimbabwe expected Government to correct the imbalances, a dilemna facing Government was how to address the inherited disparities without having a negative effect on the fairly healthy economy prevailing at that time (Kapoor, Mugwara, Chidavaenzi, 1997, Ncube 1998). Key aspects of the colonial history of Zimbabwe include the entry into Zimbabwe in 1890 by the Pioneer Column, financed by the British Cecil Rhodes, moving from South Africa in search of minerals. Upon realizing that Zimbabwe would not yield the kind of mineral wealth found in the Transvaal the settlers diversified their economic activities and moved specifically into agriculture. Although the settlers’ early failure to find large mineral deposits and their subsequent decision to stay on and move into farming, are often regarded as aspects of early colonial history that can now be safely ignored, they are absolutely crucial to understanding the entire history of Zimbabwe, (Herbst, 1990). One may be persuaded to believe that at first the settlers paid lip service to living peacefully with the African population. But after crushing early revolts of locals, the settlers acted as conquerors and began to move Blacks away from the best farming land to newly created tribal Reserves---forced removal of Africans from rich farm areas to tribal reserves, many with poor quality land became the an essential aspect of the development of the colony, and describes the first model of land redistribution as discussed in this paper. In Zimbabwe, as is the case with other African countries, the achievement of political independence is exceptionally important because it gives the leaders formal control of the state apparatus. In its 1980 election manifesto Zanu(PF) states, “It is not only anti-people but criminal for any government to ignore the acute land hunger in the country”, Zimbabwe African National Union (Patriotic Front), 1980 Election Manifesto, Salisbury, 1979, p.9. This strategic intent forms the background to land redistribution Model II as presented in this paper. Zimbabwe as a case study of state allocation decisions A case study is a strategy for doing research, which involves an empirical investigation of a particular contemporary phenomenon within its real life context (Robson, 1993; Yin, 1994). Selection of cases was guided by the need to get usable data.We concur with Herbst (1990) reasons why Zimbabwe makes a good case study for state resource allocation decisions. First, the state is involved in every aspect of the economy. Second, the relative young age of the nation makes it easy to compare the past and present. Third, the possibility that Zimbabwe’s decision processes might provide a model within the region. Models of land reform in Zimbabwe. Zimbabwe has experienced two clearly articulated land redistribution models, the first within the colonial era and the second in independent Zimbabwe. The main features of the models are summarized in Table 1 and are discussed below. Reform objectives The take off position for Land redistribution model I is one of colonialism. We define colonialism as a system of control by a country over an area or people outside its borders and concur with Peterson, (2002) 353
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Table of Contents Challenges in the
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Lennart Bangens, Goteborg, Sweden C
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Local Steering Committee Jacob Musi
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Abstract Challenges in the Era of G
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Abstract Determinants of Bank Lendi
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Empirical Results Challenges in the
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Table 3 Determinants of Competitive
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Research Findings Challenges in the
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Abstract: Study on Africa Governmen
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Abstract Challenges of Oil Revenue
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Abstract On the Mitigation of Rever
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Assessment of pollutants in nigeria
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Table: Model Fitness Regression Sta
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Conclusion Challenges in the Era of
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37. Provision of sound education fo
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The cost structure Challenges in th
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Empirical Analysis Challenges in th
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Variable Coefficient Std. Error t-S
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Abstract The Changing Requirements
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The Model, Data and Variable Defini
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Track 8: Gender and Economic Develo
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Conclusions and Implications Challe
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Abstract Exploring Organisational R
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district hospitals: Evidence from N
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Defining the Organisational Culture
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Table 1: A Summary of Operating Ban
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Discussion and Conclusion Challenge
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Abstract What does Globalization me
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Research Methods approach Challenge
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Banks in Ghana Challenges in the Er
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References: Challenges in the Era o
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The study seeks to: • examine typ
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Figure 2: Customer Perception of MT
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Relationship Commitment Total 1264.
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Abstract Marketing Nigerian medicin
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Conclusion Dissatisfied 6 3.4 3.6 7
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Football Spectatorship Challenges i
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