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Zimbabwe

Budget Summary

Flag of Zimbabwe

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Objective SO Number FY 2004 FY 2005 FY 2006
Participation 613-008 4,328 2,719 2,735
HIV/AIDS 613-009 10,600 10,600 10,600
Economic Opportunities 613-010 529 500 1,011
Total (in thousands of dollars) 15,457 13,819 14,346

Excludes P.L. 480. See Program Annex.

The Development Challenge: Zimbabwe's interrelated political, economic, and social crises have continued for six years, with a humanitarian crisis added to the mix for the third consecutive year. As civil society has increasingly pushed for greater democracy and more participation in decision-making processes, the Government of Zimbabwe (GOZ) has responded by tightening restrictions on the independent media and journalists and proposing legislation that would restrict the operation of nongovernmental organizations (NGOs), including a prohibition on foreign funding for NGOs engaged in human rights and/or governance work. Parliamentary elections will be held on March 31, 2005.

Although some leading figures have recently spoken out in favor of political tolerance, most independent observers believe the electoral playing field will remain uneven. This assessment is due to the lingering effects of years of violence and intimidation, the ongoing suppression of basic constitutional freedoms such as speech and association, and state (i.e., ruling party) control of most media and all electoral institutions. Domestic and regional dialogue concerning the electoral environment provides an important opportunity for debate and potential progress on a number of critical rule of law issues, including freedom of association, speech, and the cessation of politically motivated violence. Nonetheless, fundamental constitutional issues, such as the separation and balance of powers, will likely continue to restrict political competition, hinder government accountability and, thus, potentially generate further political conflict.

Zimbabwe is completing its sixth consecutive year of economic decline, while sub-Saharan Africa has recorded an average gross domestic product (GDP) growth rate of 3.4%. The GOZ's failure to address fundamental economic distortions means that GDP is expected to decline by a further 5.2% in 2004. Official figures suggest that inflation decreased from over 500% at the beginning of 2004 to 209% in October. Foreign exchange is in critically short supply, due principally to the country's declining export performance. The country's inability to meet external debt obligations has resulted in the suspension of international balance of payments support and fewer available international lines of credit. The GOZ is attempting to offset this by encouraging investment from China and other Asian nations. The economic decline has resulted in renewed shortages of food, fuel, electricity, and other critical imports. A once-thriving industrial sector is suffering. Forty-eight formal businesses closed in 2004, bringing the number of closures to 350 since 2002. The official unemployment rate of over 70% excludes hundreds of thousands of former farm workers who were internally displaced by the GOZ's fast-track land reform program.

Zimbabwe's once robust social services continue to collapse due to the economic crisis, the AIDS epidemic and the extraordinary brain drain. Over the past five years an estimated 25% of the population has left Zimbabwe in search of economic opportunities and political protection. Zimbabwe has one of the highest HIV/AIDS prevalence rates in the world, with a prevalence rate of 24.6% among the adult population. Life expectancy dropped from 61 years in 1990 to 34 years in 2003; infant mortality is 76 per 1,000 live births; and under-five child mortality is 123 per 1,000 live births.

The U.S. Government's national interests in Zimbabwe are to prevent further deterioration of the political/economic situation and the consequent detrimental impact on the region; to strengthen the prospects for stability by fortifying civil society and democratic institutions; to implement an effective response to the HIV/AIDS pandemic; and to mount an effective response to the humanitarian crisis.

The USAID Program: USAID's program focuses on responding to Zimbabwe's HIV/AIDS, political, economic and humanitarian crises, through 1) mitigating the HIV/AIDS pandemic; 2) increasing dialogue between the citizenry and selected government institutions; and 3) enhancing access of the most disadvantaged groups to economic opportunities. The USAID program remains subject to the restrictions imposed by the Brooke-Alexander Amendment and Section 620q of the Foreign Assistance Act. USAID assistance to the GOZ is further restricted by U.S. policy until the resolution of the current political crisis.

In FY 2005, USAID will continue the HIV/AIDS program of behavior change and prevention activities, care and support initiatives, and efforts to promote effective leadership and policy development. USAID will continue to support voluntary counseling and testing services, the social marketing of condoms, and broadcasting balanced behavior change messages. USAID will continue to support community efforts for the care of orphans and other vulnerable children, the prevention of mother-to-child HIV transmission, and provision of anti-retroviral therapy for those with AIDS. USAID will integrate HIV/AIDS activities into family planning programs, strengthen public sector and civil society capacity to advocate for improved HIV/AIDS policies, and support the engagement of church leaders in the fight against HIV/AIDS.

If enacted into law the proposed NGO Bill will influence the implementation of the Democracy and Governance program as will the March Parliamentary elections. Nonetheless, USAID anticipates continuing a robust advocacy program in order to increase public debate across a wide spectrum of issues. USAID activities focus on: 1) support to CSOs advocating for greater inclusion in national-level decision-making through increased engagement with Parliament; 2) support to the parliamentary reform program to strengthen the legislative process, the Parliamentary committee system, and the capacity of Parliament to involve citizens in parliamentary business; and 3) providing technical assistance and training to urban and rural local authorities who are committed to democratic reform.

USAID's Economic Opportunities program is designed to enhance food security and facilitate income-generating activities for the disadvantaged, mainly communal (rural) area residents, women, under- and unemployed youth, the urban poor, the disabled, orphans, farm workers, and households affected by HIV/AIDS. The Economic Opportunities program provides technical assistance; training services, including basic agronomic practices; low-cost drip irrigation technologies; and helps small farmers markets their produce.

Other Program Elements: USAID's Democracy, Conflict and Humanitarian Assistance (DCHA) Bureau has a number of activities in Zimbabwe. DCHA provides emergency food and other humanitarian assistance; however, in the face of GOZ resistance, direct feeding programs may decrease sharply this year. DCHA's rule of law and human rights programs will phase out in 2005. USAID's American Schools and Hospitals Abroad program will continue assistance to Africa University. USAID's Regional Center for Southern Africa promotes regional river basin management, agricultural research and policy development, trade and economic competitiveness, and improved electoral processes. USAID's regional HIV/AIDS program focuses on HIV/AIDS mitigation along international trucking routes and at border sites. USAID's regional Famine Early Warning System (FEWS) Network supports regional food security monitoring, analysis and reporting throughout selected countries, including Zimbabwe. The U.S. Centers for Disease Control and Prevention (CDC) works with the GOZ to combat the AIDS pandemic and with the World Health Organization on other health-related issues.

Other Donors: Donor coordination in Zimbabwe is excellent. USAID, in conjunction with CDC, leads the coordination of HIV/AIDS activities in country, and participates actively in other donor coordination groups. In addition to the United States, the major non-food aid donors are the European Union (EU - governance, social services, health, agricultural recovery, and environment); the United Kingdom (UK - HIV/AIDS/health, agricultural recovery); Japan (environment, self help, HIV/AIDS/reproductive health, education, infrastructure, agriculture, and private sector); and Sweden (HIV/AIDS and governance). Several countries implement smaller programs, including the Netherlands (governance and HIV/AIDS) and Norway (democracy and governance, health and education, although these programs are now in abeyance). The UN agencies remain active in Zimbabwe in several sectors (HIV/AIDS/health, education, environment, governance and humanitarian assistance). Donors largely channel their aid through NGOs, rather than through the GOZ.

In 2004, food and other humanitarian assistance was provided directly or indirectly by Australia, Austria, the EU, Finland, Germany, Ireland, Italy, Japan, Netherlands, South Africa, Switzerland, the UK, and the UN agencies. However, since the GOZ prohibition on external food aid in June 2004, donors' food aid programs use only existing in-country stocks. The IMF and World Bank programs remain frozen due to Zimbabwe's poor performance, breakdown in the rule of law, and failure to repay arrears. A resumption of disbursements is contingent upon clearance of arrears. The World Bank plans to provide small grant assistance to Zimbabwe for economic research and HIV/AIDS programs. The IMF is engaged in on-going discussions on the withdrawal of Zimbabwe's membership or some other form of censure, with no prospect of renewed IMF financial support in the near term.

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