Zimbabwe Economic Freedom Audit (ZEFA)
TECa works with the Fraser Institute, Atlas Network, the private sector, economists, and the Government of Zimbabwe to review Zimbabwe’s economic performance. This report assesses a country’s ease of doing business and uses five elements: regulation, sound money, freedom to international trade, size of government, and the legal system and property rights. The report identifies the newly established Zimbabwe Investment Development Agency (ZIDA) as a potential game changer to enhance Zimbabwe’s prosperity.
Objectives of the audit
The Zimbabwe Economic Freedom Audit (ZEFA)'s primary objective is to reflect and help give an indicator to policy makers in terms of the NDS1 aspiration on economic development. The Zimbabwe Investment and Development Authority (ZIDA), Parliament of Zimbabwe, Ministry of Finance and Economic Development, entrepreneurs especially the youth, business, investors and academia have a primary interest on the findings of this audit.
Methodology
This audit adopts a very inclusive and participatory approach. A multi-sampling method will be used including purposive sampling when targeting Government institutions responsible for ease of doing business. A stratified random sampling method shall be deployed on young entrepreneurs with a special target on women and respondents across Zimbabwe's geographic landscape. The views of women, especially young women- being the majority population segment in Zimbabwe, is crucial if this audit is to be valid.
Key Indicators
Area 1: Size of Government-
As government spending, taxation, and the size of government-controlled enterprises increase, government decision-making takes the place of individual choice and economic freedom is reduced.
Area 2: Freedom to Trade Internationally
Freedom to exchange in its broadest sense, buying, selling, making contracts, and so on-is the essence of economic freedom. And this freedom is reduced when government impediments to trade make it costly or even impossible to exchange with businesses and individuals in other nations.
Area 3: Legal System and Property Rights
Legal System and Property Rights-Protection of persons and their rightfully acquired property is a central element of both economic freedom and civil society. Indeed, it is the most important function of government. If property is not secure, if individuals are not safe, if the judiciary is not impartial, or if the rule of law is undermined, then, again, economic freedom is reduced.
Area 4: Sound Money
Inflation erodes the value of rightfully earned wages and savings. Sound money is thus essential to protect property rights. When inflation is not only high but also volatile, it becomes difficult for individuals to plan for the future and thus use economic freedom effectively.
Area 5: Regulation
Governments not only use a number of tools to limit the right to exchange internationally, they may also impose onerous regulations, domestically as well as on international trade, that limit the right to exchange, gain credit, hire or work for whomever one wishes, or freely operate one’s business. As these limits multiply, economic freedom decreases.
ECONOMIC FREEDOMS COUNTRY AUDIT LAUNCH(2024) PHOTO GALLERY
