The impact of hyperinflation on the Zimbabwean construction industry
| dc.contributor.author | Moyo, Admire | |
| dc.contributor.author | Crafford, Gerrit | |
| dc.date.accessioned | 2016-06-15T11:24:36Z | |
| dc.date.available | 2016-06-15T11:24:36Z | |
| dc.date.issued | 2010 | |
| dc.description.abstract | English: The purpose of this article is to indicate the effects of hyperinflation on the Zimbabwean construction industry. The latter, much like its successful regional and international counterparts, contributes towards the country’s gross domestic product, improving employment levels, economic growth, and restructuring the unfavourable balance of payment. In the last decade, however, this has not been the case in Zimbabwe as the country has grappled with severe hyperinflation that has led to the lack of a stable national currency accompanied by shortages of investors and labour which have resulted in the collapse of the construction industry. Regardless of other debatable causes of the crises the Zimbabwean government has labelled hyperinflation the country’s foremost enemy, the root cause of the construction industry crises. The article presents the findings of a Masters study whose primary objectives were to determine the cause of hyperinflation in Zimbabwe, investigate the relationship between hyperinflation and the collapse of the Zimbabwean construction industry, and determine whether hyperinflation is indeed responsible for the collapse of the Zimbabwean construction industry. The significant findings of the study (conducted at the peak of Zimbabwe’s hyperinflation) are as follows: the Zimbabwean government and the Reserve Bank of Zimbabwe arbitrarily printing money are the root cause of hyperinflation; hyperinflation has resulted in the lack of a stable national currency; investors and labour factors have led to business closures; stunted economic growth, and a collapsed construction industry. The article concludes that hyperinflation shares an inverse relationship with the construction industry; in other words, as hyperinflation increases, construction industry performance decreases up to a point where the industry collapses and vice versa. The article demonstrates how this phenomenon has led to the collapse of the Zimbabwean construction industry. The article recommends that the variables that are lacking in Zimbabwe be replenished as a precondition for the revival of the construction industry and that the merits of a stable socio-economic environment, a new government, dollarisation and an infrastructure stimulus package to address or counteract the effects of hyperinflation on the construction sector be investigated. | en_ZA |
| dc.description.abstract | Afrikaans: Die doel van hierdie artikel is om die uitwerking van hiperinflasie op die Zimbabwiese konstruksiebedryf aan te dui. Tot onlangs het die Zimbabwiese konstruksiebedryf, nes sy suksesvolle streeks- en internasionale eweknieë, heelwat bygedra tot die land se bruto binnelandse produk, beter vlakke van werkverskaffing, ekonomiese groei, en die herstrukturering van die onbevredigende betalingsbalans. In die laaste dekade was dit ongeluking nie die geval in Zimbabwe nie; die land het geworstel met ‘n ernstige hiperinflasie as gevolg van die gebrek aan ‘n stabiele nasionale geleentheid, ‘n tekort aan beleggers en werksgeleenthede wat gesamentlik bygedra het tot die ineenstorting van die konstruksiebedryf. Ongeag ander debateerbare oorsake van die krisis, het die Zimbabwiese regering intussen hiperinflasie as die land se grootste vyand uitgewys. Hierdie artikel bevat die resultate van ‘n magisterstudie waarvan die doelstellings was om vas te stel wat die oorsaak is van hiperinflasie in Zimbabwe, ondersoek in te stel na die verhouding tussen hiperinflasie en die ineenstorting van die Zimbabwiese konstruksiebedryf en vas te stel of hiperinflasie beslis verantwoordelik is vir die ineenstorting van die Zimbabwiese konstruksiebedryf. Die vernaamste bevindinge van die ondersoek (uitgevoer op die hoogtepunt van Zimbabwe se hiperinflasie) is die volgende: die Zimbabwiese regering en die Zimbabwiese Reserwebank druk op arbitrêre grondslag nuwe geld en dit is die vernaamste oorsaak van hiperinflasie; hiperinflasie lei weer op sy beurt tot die gebrek aan ’n stabiele nasionale geldeenheid, beleggers en arbeidsfaktore wat weer aanleiding gee tot die sluit van besighede, ‘n negatiewe ekonomiese groei en ‘n konstruksiebedryf wat in duie stort. Die artikel kom tot die gevolgtrekking dat hiperinflasie ‘n omgekeerde verhouding deel met die konstruksiebedryf want soos hiperinflasie toeneem, neem die konstruksiebedryf af tot op so ‘n vlak dat dit feitlik in duie stort - en omgekeerd. Die artikel dui aan hoe hierdie toedrag van sake gelei het tot die ineenstorting van die Zimbabwiese konstruksiebedryf. Voorts beveel die artikel aan dat die veranderlikes wat tekort skiet in Zimbabwe, aangevul kan word as ‘n voorvereiste vir die heropbou van die konstruksiebedryf. Die artikel stel voor dat ‘n ondersoek geloods word na die meriete van ‘n stabiele sosio-ekonomiese omgewing, ‘n nuwe regering, dollarisering en ‘n pakket wat die infrastruktuur moet stimuleer om die uitwerking van hiperinflasie op die konstruksiebedryf te kan aanspreek en teenwerk. | af |
| dc.description.version | Publisher's version | en_ZA |
| dc.identifier.citation | Crafford, G. J., & Moyo, A. (2010). The impact of hyperinflation on the Zimbabwean construction industry. Acta Structilia, 17(2), 53-83. | en_ZA |
| dc.identifier.issn | 1023-0564 (print) | |
| dc.identifier.issn | 2415-0487 (online) | |
| dc.identifier.uri | http://hdl.handle.net/11660/3076 | |
| dc.language.iso | en | en_ZA |
| dc.publisher | University of the Free State | en_ZA |
| dc.rights.holder | University of the Free State | en_ZA |
| dc.subject | Hyperinflation | en_ZA |
| dc.subject | Construction industry | en_ZA |
| dc.title | The impact of hyperinflation on the Zimbabwean construction industry | en_ZA |
| dc.type | Article | en_ZA |