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- Title
Surrogate Currency and its Impact on the Livelihoods of Smallholder Farmers: A Zimbabwean Case.
- Authors
Mhlanga, David; Ndhlovu, Emmanuel
- Abstract
This article explored the implications of surrogate currency adoption for smallholder farmer livelihoods in Zimbabwe with a focus on the Fast-Track Land Reform Programme (FTLRP) beneficiaries. Using the literature review approach and drawing on secondary data sources, the article revealed that the introduction of surrogate currency disseminated the financial capital, thereby affecting the ability of farmers to engage in meaningful trade, at various levels. The surrogate currency did not address the liquidity challenges it was meant to address, but rather became a tax burden commonly known as inflation tax. The tax burden came because of the loss in value of cash and cash equivalents in the hands of farmers due to inflation. Overall, this has comprised production, asset accrual potential and marketing activities. Restoration in the value and confidence in the currency is paramount in restoring the capacity of smallholder farmers to put their labour and assets to productive use in farming.
- Subjects
ZIMBABWE; CASH &; cash equivalents; FARMERS; SMALL farms; LITERATURE reviews; HARD currencies; TAX incidence; FARM size
- Publication
African Journal of Development Studies, 2021, Vol 11, Issue 4, p93
- ISSN
2634-3630
- Publication type
Article
- DOI
10.31920/2634-3649/2021/v11n4a5