ZIMBABWE, despite a fairly sophisticated modern sector, displays the features typical of developing countries with agricultural sectors characterized by parallel modern and traditional production systems and large surplus labour forces. Reynolds has observed that poor, labour-surplus countries are still living in a classical world and should perhaps follow the classical route towards fuller employment.' The reality, however, is that social and political factors tend to dominate classical economics particularly in democratic developing countries such as Zimbabwe, where wage-earners are highly influential. The government elected in Zimbabwe in 1980 has taken control of a nation with a strong commercial agricultural sector2 (predominantly white, owneroperator farmers) and a poorly developed peasant agricultural sector. The peasant sector has, for varying periods, suffered from a combination of antagonistic government policies, guerrilla warfare and rapid population growth. Zimbabwe is characterized by a high degree of food self-sufficiency, a wide gap between the upper and lower income-earners in the economy, and the need to maintain confidence among the many divergent groups which make up the nation. The improvement in income and living conditions for the poor of Zimbabwe is a priority task of the new government. At the same time, the need to sustain and develop existing commercial agriculture is recognized. A strong agricultural sector will have a major part to play in the development of both the country and the region in terms of food production and foreign exchange earnings. The development of the peasant sector will require massive inputs of resources in the immediate future while the commercial sector will be expected to maintain or increase production under less-than-ideal economic conditions. How to find the correct balance between improving the lot of both wage-earners and peasants while maintaining confidence in the commercial, industrial and agricultural sectors of the economy is a central dilemma currently facing Zimbabwe's new government.
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