Examine the perceived benefits to be accrued from the new path that has been taken by Zimbabwe in international relations.
Answers
There was a change of government in Zimbabwe in November 1917. After that Zimbabwe embarked on a new path to re-engage with international institutions, start fresh with foreign businesses and rebuild the economy.
Revitalizing Zimbabwe's economy may not be an easy task. The most important challenge is to resolve the lack of cash in the economy due to which it is difficult for businesses to import goods and for consumers to transact. In order to resolve this problem arrangements have been made with the African Export and Import Bank to provide support for importers and US$ 300 million in new guarantees to permit the central bank to increase printing of "bond notes".
These measures may provide some temporary relief. But to accelerate growth it may be necessary to convince the African Development Bank and the World Bank that the government is a reliable borrower now. Only then it will be possible for Zimbabwe to access the credit required to re-inflate the economy. Progress in resolving these issues may be slow and incremental.
Foreign companies may invest in markets offering lifestyle and consumer goods as the reforms begin to stabilize the economy. In the next few years the formal retail sector may be revived as a result of an influx of capital.