A Brief Note On Trade And Infrastructural Development

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Trade and Infrastructural Development Generally, international trade tends to encourage the construction of a strong domestic infrastructure but the two are not directly correlated. Unfortunately, it’s safe to assume to assume that Zimbabwe’s infrastructure suffers due to its landlocked position, which could explain the continuous decrease in % of population with access to things such as improved sanitation facilities and the improved water sources over the years. Although, given the mostly increasing trend in trade and investments (and in real growth), it’s logical to assume that Zimbabwe’s infrastructural development will follow a similar pattern eventually. There are also multiple plans in existence designed to strengthen…show more content…
The correlation between mobile cellular subscriptions and trade makes sense if one looks at Zimbabwe’s imports during any given year. In 2013, 17% of Zimbabwe’s imports were technology related (computers, machines et cetera) with the biggest portion being telephones (1.6%) (OEC). In conclusion, even if there is not a direct correlation between their growths, Zimbabwe’s technological progress is still highly dependent on trade. Trade and Institutional Development Much due to president Mugabe’s rule, Zimbabwe has struggled with several issues over the years and not all are economy related. Zimbabwe has often has been criticized for being conservative and for their primitive human rights legislations, which is also likely to be a major reason behind Zimbabwe’s struggling relationships with major donors and lenders (The World Factbook) However, Zimbabwe 's increased commitment to fiscal discipline and its adoption of the U.S. dollar as their currency have brought some encouraging signs towards macroeconomic stabilization. Yet, Zimbabwe 's economy is still in a delicate state with high unemployment, depleted international reserves and unsustainably high external debt. This socio-political environment, combined with the controversial land reform, triggered the withdrawal of support from the international community and cast a shadow over property rights, thereby undermining the business
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