Far Eastern University

Institute of Accounts, Business, and Finance

INTERNATIONAL BUSINESS AND TRADE

MGT1111 – CASE STUDY

CASE NO. 2: The Decline of Zimbabwe, page 627

Introduction:

Zimbabwe once held the title as “the jewel of Africa” for its enormous contribution
on the economy that every country looked up to because of its strong, effective and
efficient economy including their natural resources and their agriculture. Robert
Mugabe, who led the Zimbabwe African National Union (ZANU) to free their country
from Rhodesia who excluded the black people to lead was able to end their rebellion.
Mugabe became the president of Zimbabwe that started the nightmare of the people.
From the title of the Jewel of Africa, it has faced with lots of issue after taking wrong
actions. Zimbabwe had the worst performance ranking in the lowest. He gave the land
to his supported who did not have enough experience in farming that led to a great
decline. The country also proposed different acts that led to a much worse economy as
foreign organizations pulled out their business. They also faced health issues
specifically AIDS with HIV that lowered he life expectancy to 43 years. After issues and
wrong actions, the World Bank still believes that Zimbabwe can rise again knowing of its
abundant resources and its title in the past they know they can do it again, by changing
their leaders. Mnangagwa was able to impeach and replace Mugabe and later Mugabe
died but his failed legacy is still living within the economy of Zimbabwe.

Aims:

The purpose of this study is to look further on different economic style and how it
affects the economy of the country. This study also aims to answer what should have
been the steps their leader should have taken to preserve the title as the Jewel of
Africa.

Method:

This study was carried out through research and book to collect information in
relation to this study to effectively answer the aims.

Results:

From what I have gathered, Mugabe’s leadership were an example of a

command economy, wherein his state was the one in control of all the resources and

MGT1111 – COURSE ANALOG INSTRUCTION 1

economy of the country. The people did not have freedom to express their interest on
the economy, to help innovate the structure of the business. He gave the experience of
farming on his own people who did not have any experience about farming that led to a
decline on its agricultural economy. Mugabe was too focused on the power of the state
rather than distributing the works to people to enhance the economy’s competitiveness
to make It more effective and efficient.
Command economy has its advantage if it was for a good purpose, to envision
the government’s plan for a more successful and stronger economy for its people,
although that did not happen. Instead, he ignored the potential of its people who were
one of the major contributors for the title of Jewel of Africa and ignored the possible
improvements and innovation.
Mugabe should have used the mixed economy if he still want to get a hold of
different organization for the state while still leaving the contributors who were experts in
their field to continue the legacy of their economy.

Discussion:

The significance of this study is beneficial for future leaders to take into
consideration different styles for their economy and its outcome in the long run. This
could help them in the process to think things through when deciding not just for
yourself but also for the people and the economy leaders are going to handle.

Recommendations:
After Mngagwa handle Zimbabwe, it is best to look deeply on what should be
reset especially give the projects back to people who were expert in their field, veto the
acts once signed by the former president that made the foreign investment and trade
worse. It is not going to erase the history but it will serve as a lesson to further enhance
the effectivity of the future leader.
References:

https://www.facebook.com/thebalancecom. (2021). 5 Traits of a Command Economy.

Retrieved June 21, 2021, from The Balance website:

https://www.thebalance.com/command-economy-characteristics-pros-cons-and-

examples-3305585

MGT1111 – COURSE ANALOG INSTRUCTION 2