Socio-economic implications of devolution: Focus on informal traders and vendors

Michael Ndiweni
THE government of Zimbabwe has made pronouncements to implement Chapter 14 of the Constitution and ensure that Zimbabweans enjoy benefits that come with the devolution model and that include the biggest informal economy workers in the country. Often questions will be asked on the implications of devolution on informal traders and vendors.

Before one delves into socio- economic implications of devolution, is it important to understand the purpose of devolution of power. According to Dembowski (2013), devolution of government powers is typically meant to make society more democratic by empowering more people to participate in decision making, and to make governance more effective by reducing the distance between those who are in charge of an issue and the people their action affects.

Chapter 14 Section (264) Subsection (2d) of the Constitution of Zimbabwe states that the objectives of devolution of government powers and responsibilities to provincial and metropolitan councils and local authorities is to recognise the right of communities to manage their own affairs and to further their development. In that regard it is important that there is inclusion of informal economy (traders) workers in the process of implementing the devolution constitutional provisions so that it is responsive to their needs.

The Government’s devolution perspective
Government has indicated “economic devolution” with less emphasis on political devolution. The Minister of Finance Professor Mthuli Ncube has said announced that Treasury has set aside $310 million to facilitate devolution of power to provincial councils following an outcry from marginalised communities. Government has also approved the Principles of the Provincial Councils and Administration Amendment Bill, which spells out the mechanisms of decentralisation and devolution.

Provincial governments will be allocated five percent of budget revenue for the development of local authorities. In his budget speech in November 2018 Prof Ncube noted that the Transitional Stabilisation Programme (TSP) views decentralisation as a key strategy for fair and just governance. All provinces should be able to plan and implement their economic growth and development using their factor endowments, with central Government using the five percent allocation.

Socio-Economic implications of devolution- focus on vendors and informal traders

It is anticipated that the implementation of economic devolution will give power to informal traders and minimise the level of interference by the central Government in the affairs of local authorities and also ensure inclusive economic development. This means that since there is political will to devolve power it must come with financial resources.

Based on the above submissions there is need to ensure that informal traders understand and enjoy the benefits of devolution of power at local level by being at the centre of programmes that will be implemented in their communities. Informal economy players must adapt or adopt means to accrue benefits from the implementation of devolution of power.

Some strategies to achieve the former is to develop a shared Informal Economy Agenda in line with devolution of power. For example, how can powers that be ensure that the five percent allocated to provincial councils also benefits small local economic units owned by vendors and informal traders. The Informal Economy Agenda must also outline the steps that the Government will take to foster transition from Informal Economy to Formal Economy.

Lack of inclusion participation of informal traders and vendors in the implementation of devolution power will mean that over 94 percent of the population will be excluded in efforts to empower communities. (BVTA Informal Sector Research, 2017).

In the informal economy perspective the interim goals for implementation of power, must be to increase incomes and security for informal traders, increase the understanding of devolution by informal traders through recognition of vendors and informal traders in the devolution discourse. Key to this is the recognition and admission that there are inconsistencies on the laws that govern the informal economy with Chapter 14 of the Constitution of Zimbabwe on Devolution of Power.

Moving forward
– A significant number of informal traders still lack information on the thrust of devolution of power and its implications, hence awareness campaigns are crucial to disseminate information, that is, discussion on radio and television on the implications of devolution of power.

– Informal traders and vendors must make sure that they engage local authorities to devolve their services for example licencing for vendors and informal traders is centralised while there are municipal housing offices in almost all the townships.

– Informal sector civil society traders associations must play a lead in organising advocacy campaigns for the implementation of economic devolution.

– In order to influence the legal framework and ensure that it encapsulates their economic empowerment aspirations, informal traders and vendors must influence promulgation of the Provincial Council Act through actively participating in Public Hearings that are expected to be held soon based on the government’s pronouncements.

l Vendors and informal traders working with their civil society technical experts can produce alternative model laws informal sector laws and use those to lobby local authorities to have inclusive local development policies that ensure that their livelihoods are improved.

Broadly civics society organisations groupings such as Matabeleland Collective have already set the bar for the government’s economic devolution. They have demanded that the government;

(1) Decentralise economic development spaces in urban and rural structures infusing an “ease of doing business” at district and provincial levels. Beneficiation and Value addition of all local products must be openly promoted and incentivised at community level for poverty eradication and enhanced natural resource governance.

(2) Government to reform economic development legal frameworks by urgently consulting communities so as to restructure the economic development models and finance resource allocation mechanisms at local, district and provincial level. Government to facilitate participation by special minority community formations including women, youth and the people with disabilities.

– Sponsored by Zimbabwe Christian Alliance: Contact: [email protected]. Phone: 029 231213.

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