Macroeconomic policy making and the dimensions of social security in the rural areas of Zimbabwe

Abstract

Macroeconomic policy making normally seeks to achieve sustainable economic growth and efficiency in resource allocation and utilisation through the use of the appropriate monetary, fiscal and trade policies. Conventional wisdom postulates that the free market system is the best mechanism for the achievement of this goal. However, depending on the initial conditions of resource distribution and power relations in society, the free market outcome may not be socially acceptable as it tends to be characterised by inequalities. It is under this situation of "market failure" to efficiently allocate social goods and services that governments normally should intervene with social policies (i.e state regulation of the market to protect the public from the bad effects of imperfect competition). Social policies could be in the form of resource redistribution, improving access to health, education, housing, water and sanitation, intervening in certain markets to improve income distribution etc (Mwanza 1997). It is generally difficult to foster development efforts in a nation whose majority population is plagued by social insecurity. Thus, macroeconomic policy making, political decisions and social security are strongly interdependent. This means that it is in the interest not only of the poor people, but also of national governments, to reduce or minimise social insecurity in order to achieve the best from development efforts.