Thursday, October 31, 2013

Extractive Dual Economy in Zimbabwe

Robinson and Acemoglu merely mention Zimbabwe's dual economy (and that it was a result of land allocation acts like in South Africa), but they do discuss the negative impact a dual economy has on growth and the disenfranchisement of huge amounts of people and needed to support the extractive economic institutions (particularly surrounding the mining industry) that stem from an apartheid-born dual economy.

The extractive institutions of Zimbabwean mining industry, diamond mining in particular, are representative of the extraction from the days of Rhodesian neo-apartheid. Celia W. Dugger writes in a 2009 New York Times Article: "Zimbabwe’s military, controlled by President Robert Mugabe’s political party, violently took over diamond fields in Zimbabwe last year and has used the illicit revenues to buy the loyalty of restive soldiers and enrich party leaders, Human Right's Watch charged in a report released Friday." The corruption, however, goes further than that. A News24.com article explains that "About $2 billion in Zimbabwe's diamond revenues have been unaccounted for since 2008" and goes on to explain that this money could be funding much worse than Robert Mugabe's super-mansion.

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