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The Analysis of Zimbabwe`s informal Sector`s Economic Sustainability Subject to Lockdown Effects

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  • Tafadzwa Telmore Tarupiwa

    (Midlands State University, Zimbabwe.)

Abstract

Zimbabwe`s economic society had been dominated by the informal sector as the primarysource and substitute for formal employment. It comprises vendors, crosses border traders, cottage industries, artisanal miners,and many others conducting lawful but unregistered economic activities. Given it being seen as a new normal for Zimbabwe`s economic structure, the 2020 national lockdown necessitated the analysis of Zimbabwe`s informal sector's economic sustainabilitygiven the hardship experienced. Applying extensive literature review, content analysis,and critical assessment of theory and practice as the methodology, the informal sector is deemed highly unsustainable economically. This paper proposes a total restructuring of Zimbabwe`s sector structure by creatinga comprehensivedevelopment strategy that enables refocusing government expenditure and policy towards realignment of informal structure to formal. Furthermore, this paper advocate for a balanced development strategythat incorporates all sectors that accelerate growth and a stable formal sector through technological innovations and modernization. There is technology transfer to the informal sector. As opposed to arbitraging and vending activities,they are prone to stagnation and vulnerability.

Suggested Citation

  • Tafadzwa Telmore Tarupiwa, 2020. "The Analysis of Zimbabwe`s informal Sector`s Economic Sustainability Subject to Lockdown Effects," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 2(1), pages 43-52, June.
    • Handle: RePEc:ani:irdjoe:v:2:y:2020:i:1:p:43-52
    DOI: https://doi.org/10.52131/joe.2020.0101.0015
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    References listed on IDEAS

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    1. Friedrich Schneider, 2011. "The Shadow Economy Labour Force," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 12(4), pages 53-92, October.
    2. Schneider, Friedrich, 2011. "The Shadow Economy and Shadow Economy Labor Force: What Do We (Not) Know?," IZA Discussion Papers 5769, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    Informal sector; Economic sustainability. Zimbabwe. Employment; Lockdown;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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