On ideology change and spatial and structural linkages between formal and informal economic sectors in Zimbabwean cities (1981-2010)

Gumbo, Trynos (2013-03)

Thesis (PhD)--Stellenbosch University, 2013.

Thesis

ENGLISH ABSTRACT: Zimbabwean cities have been experiencing wide-ranging economic restructuring since independence in 1980. The relationships between the declining formal economy and the growing informal economy concomitant with political and economic ideological shifts over the years have not been studied extensively and are not well understood. In this study the impact of political and economic ideological shifts on the growth, spatial and structural linkages between the two sectors over the three decades, from 1981-2010, in the country’s two main cities, Harare and Bulawayo, is investigated. Mixed-method approaches were applied to gather spatial, quantitative and qualitative data. Geospatial data were created using 1164 and 857 geographical positioning system locational points of informal economic enterprises in Harare and Bulawayo respectively. Maps of the two cities were scanned, georeferenced, projected and digitised. Longitudinal and crosssectional data were gathered from archival sources and through 300 and 600 questionnaire surveys of formal and informal economic operators respectively. Qualitative data was generated from 30 interviews that were conducted with professionals that influence the operations of the two sectors. The data were analysed using GIS, SPSS and Statistica software to reveal the temporal growth of the two sectors, as well as their spatial and structural linkages. It was found that the informal sector grew by 17% under the socialist policies of the 1980s. This increase was partly attributable to overurbanisation because the urban labour force increased at an average of 3% per annum compared to the formal economic sector that generated employment at an average of only 2.2% per annum throughout the 1980s. The shifts toward neo-liberal economic policies at the beginning of the 1990s resulted in immense retrenchments, forcing many workers to join the informal sector. As formal firms adjusted their operations to fight global competition, employment generation declined to an average of 1% per annum throughout the1990s. The informal sector responded by employing 61% of the labour force by 2001. The adoption of authoritarian policies at the beginning of the 2000s accelerated the decline of the formal economy which recorded negative growths for most of the first decade of the millennium. This led to the rapid rise of informal sector employment to an astronomic level of 87.8% in 2008. The investigation revealed substantial locational transformations of both formal and informal economic enterprises. During the 30-year period, informal economic businesses spread in low-income suburbs, city centres and neighbourhood and district shopping centres. 16.3% of formal economic enterprises left the city centres preferring secure medium density suburbs close to the CBDs, shopping complexes, industrial, office and business parks on the edges of the cities. 83.7% remained in the city centres and industrial centres where informalisation of operations was one of the strategies employed to fight competition, whilst 86.3% and 22.8% informal economic enterprises licensed and registered their operations respectively over the 30 year period. These spatial and structural changes resulted in linkages being formed between the two sectors. The nature of the linkages is largely influenced by the position of the informal businesses on a continuum of informal enterprises ranging from traditional, through transitional to semi-formal. It was found that traditional and transitional enterprises had strong backward linkages with formal businesses where they purchase their goods and raw materials. Forward linkages exist where semi-formal businesses sell furniture, building materials and clothing to formal businesses. Thus, a symbiosis exists, but linkages are very exploitative as formal businesses tend to dictate the terms of business. The reciprocal-supportive model was extended by adding four pillars that influence the operations of the two sectors to produce a differential complexity model of informalisation (DCMI). The reasons or causes of informalisation (RE); the subsectors that comprise the two sectors (SE); the various locations of the two sectors’ businesses (L); and the levels of formality and informality (Ls) are integrated in the DCMI to aid comprehension of the linkages between the two sectors. The model can be adjusted and applied to various urban settings, allowing for the development of the two sectors spatially, structurally and temporally.

AFRIKAANSE OPSOMMING: Zimbabwe se stede is sedert die land se onafhanklikheidswording in 1980 aan omvattende ekonomiese herstrukturering onderworpe. Samelopend met die kwynende formele ekonomie was daar groei en ruimtelike en strukturele veranderings in die informele sektor. Die reaksies van die twee ekonomiese sektore op die politieke en ekonomies-ideologiese verskuiwings gedurende die eerste drie dekades na onafhanklikheid, is nog nie omvattend bestudeer nie en word tot nog toe nie goed verstaan nie. In hierdie studie word hierdie verwantskappe in Zimbabwe se twee hoofstede, Harare en Bulawayo, bestudeer. ‘n Gemengde-metode benadering word gevolg om ruimtelike, kwantitatiewe en kwalitatiewe data in te samel. Georuimtelike data is met behulp van ‘n geografiese posisioneringsisteem, skandering, geoverwysing, projektering en versyfering van kaarte van die twee stede geskep. Kwantitatiewe longitudinale-en dwarsprofieldata is verkry uit argiefbronne en deur middel van vraelysopnames onder formele en informele handelaars. Onderhoude met professionele persone wat die werking van die twee sektore beïnvloed, het kwalitatiewe data gelewer. Die data is met GIS- en SPSSsagteware ontleed om die groei van die twee sektore oor tyd, en hulle ruimtelike en strukturele skakels bloot te lê. Daar is gevind dat die informele sektor met 17% gegroei het onder die sosialistiese beleid van die 1980s. Hierdie toename kan gedeeltelik aan oorverstedeliking toegeskryf word omdat die stedelike arbeidsmag met ‘n gemiddelde van 3% jaarliks toegeneem het in vergelyking met die formele sektor wat werksgeleenthede slegs teen 2.2% jaarliks gedurende die 1980s gegenereer het. Verskuiwings na neoliberale ekonomiese beleid teen die begin van die 1990s het grootskaalse afdankings tot gevolg gehad, wat baie werkers gedwing het om by die informele sektor aan te sluit. Namate formele ondernemings aanpassings gemaak het om die stryd te voer teen globale kompetisie, het werkverskaffing gedaal tot ‘n gemiddelde van 1% jaarliks gedurende die 1990s. Die informele sektor het gereageer deur om in 2001 61% van die arbeidsmag te huisves. Die aanvaarding van outoritêre beleid teen die begin van die 2000s het die kwyn van die formele ekonomie verhaas, met die gevolg dat negatiewe groeikoerse gedurende die meeste van die eerste dekade van die millennium ervaar is. Dít het aanleiding gegee tot ‘n snelle toename in indiensneming in die informele sector, tot ‘n astronomiese 87.8% in 2008. Die ondersoek bring aansienlike liggingstransformasies van formele en informele besighede te vore. Gedurende die drie dekades (1981 tot 2010) het die informele ondernemings na lae-inkomste woonbuurte, middestede, en buurt- en distrikswinkelsentra versprei. Sommige formele ondernemings het weggetrek uit die middestede na fabrieks-, kantoor- en sakeparke in die randgebiede van die twee stede. Sommige formele ondernemings wat in die middestede aangebly het, het hulle sake geïnformaliseer om kompetisie te bestry en informele ondernemings het hulle sakestrukture deur lisensiëring en registrasie aangepas. Hierdie strukturele wysigings het wisselwerking tussen die twee sektore laat ontstaan. Die aard van die wisselwerking word beïnvloed deur die posisie wat die informele ondernemings beklee op ‘n kontinuum van ondernemings wat strek van tradisioneel deur oorgangstipes tot by semi-informeel. Daar is gevind dat die meeste informele handelaars en produsente hulle verkoopsware en grondstowwe by leweransiers in die formele sektor verkry. Verkoopskakels bestaan waar informele vervaardigers meubels, boustowwe en klerasie aan formele ondernemings voorsien. Dus bestaan daar ‘n simbiose, maar die skakels neig om uitbuitend te wees want die formele ondernemings dikteer dikwels besigheidsvoorwaardes. Die wederkerige-ondersteunende model is uitgebrei deur die byvoeging van vier pilare, wat die handelinge van die twee sektore beïnvloed, om ‘n differensiële kompleksiteitsmodel van informalisasie (DKmI) tot stand te bring. Die redes vir, of oorsake van informalisering (RE); die subsektore waaruit die twee sektore bestaan (SE); die verskeie liggings van die twee sektore se besighede (L); en die vlakke van formaliteit en informaliteit (Ls) is geïntegreer in die DKmI om begrip van die skakels tussen die twee sektore te bevorder. Die model is aanpasbaar en toepasbaar in verskeie stedelike omgewings om ontwikkeling van die twee ekonomiese sektore ruimtelik, struktureel en temporeel moontlik te maak.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/79861
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