Low Income: Zimbabwe's gross national income (GNI) per capita is below the threshold set by the United Nations for LDCs. The threshold is periodically revised, but as of 2023, it is around $1,265. Zimbabwe's GNI per capita is significantly lower than this threshold.
Weak Human Capital Indicators: LDCs are characterized by low levels of human capital development. Indicators such as life expectancy, infant mortality rates, access to education, and nutrition levels are poor in Zimbabwe compared to more developed countries.
Economic Vulnerabilities: Zimbabwe's economy is susceptible to external shocks and internal challenges. Economic volatility, dependence on a few primary commodities, and a large informal sector contribute to these vulnerabilities.
Lack of Diversification: LDCs often lack economic diversification, and Zimbabwe is no exception. Its economy heavily relies on agriculture, mainly tobacco and other commodities, exposing it to price fluctuations in international markets.
Structural Disadvantages: Structural barriers such as inadequate infrastructure, weak institutions, poor governance, and limited technology hinder economic growth and sustainable development in Zimbabwe.
External Constraints: Access to international markets, foreign direct investment, and beneficial trade agreements may be limited for LDCs, including Zimbabwe. These constraints create challenges in promoting economic growth and alleviating poverty.
It's important to note that while Zimbabwe falls under the category of an LDC, these classifications are not static, and countries can work towards improving their development indices and transitioning to the status of a developing or developed country. LDC status also means the countries are entitled to specific international support including aid, preferential trade agreements, and debt relief in order to help them overcome their development challenges.
