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Robert Mugabe

Why Nations Fail: The Origins of Power, Prosperity, and Poverty

Robert Mugabe led Zimbabwe from independence in 1980 and became the central figure in the book’s account of how an anticolonial liberation movement can inherit and reproduce extractive institutions. His rule replaced the white-minority regime of Ian Smith with a government dominated by Mugabe and ZANU-PF, but it did not create broadly inclusive political or economic institutions. By the end of the account, his consolidation of power, economic controls, electoral coercion, and attacks on property rights had helped turn Zimbabwe’s political and economic crisis into state failure.

From liberation struggle to personal rule

Mugabe came to power through the struggle against white rule in Rhodesia. The white minority, led by Ian Smith and comprising possibly 5 percent of the population, had declared independence from Britain in 1965. The United Nations imposed sanctions, while black citizens organized a guerrilla war from neighboring Mozambique and Zambia. Mugabe’s Zimbabwe African National Union and Joshua Nkomo’s Zimbabwe African People’s Union were the two principal movements in the rebellion. International pressure and the insurgency brought a negotiated end to white rule, and the state of Zimbabwe was established in 1980.

After independence, Mugabe quickly established personal control. He eliminated opponents through violence or brought them into his political orbit. The most severe violence described in the account occurred in Matabeleland, a stronghold of support for Nkomo’s ZAPU: as many as 20,000 people were killed in the early 1980s. In 1987, ZAPU merged with ZANU to form ZANU-PF, and Nkomo was politically sidelined. The sequence made the character of the new state plain: liberation from white rule did not ensure pluralism or protect political opponents from the power of the government.

Mugabe also changed the constitutional arrangements inherited from the independence negotiations. He moved from prime minister to president, abolished the white voter rolls specified in the agreement, and eventually abolished the Senate in 1990. He introduced legislative positions that he could fill by nomination. These changes helped turn Zimbabwe into a de facto one-party state headed by Mugabe. The book emphasizes a particular constraint on his rule’s outward form: because he had come to power through an anticolonial struggle, he had to cloak his government in elections, even when he had managed to establish a constitutionally sanctioned one-party state.

Institutions and the limits of economic control

At independence, Mugabe inherited economic institutions created under white rule and largely preserved their extractive character. They included extensive controls on prices and international trade, state-run industries, and obligatory agricultural marketing boards. Government employment expanded rapidly, with jobs going to ZANU-PF supporters. Regulation suited the ruling elite because it made it harder for an independent class of African businesspeople to emerge and potentially challenge the party’s political monopoly.

This system produced a revealing irony. Although the government’s controls could obstruct the development of independent African businesses, white people remained the principal business class. For a time, the white economy’s strengths—particularly its highly productive agricultural export sector—were left largely untouched. The arrangement endured until Mugabe became unpopular and the existing model of regulation and market intervention grew unsustainable.

After a severe fiscal crisis, a process of institutional change began in 1991 with support from the World Bank and the International Monetary Fund. But the book’s account distinguishes formal policy changes from a change in political power: the reforms did not dislodge the institutions that protected the ruling elite. Mugabe declared Zimbabwe’s central bank independent in 1995, apparently accepting international advice intended to prevent politicians from financing spending by compelling the bank to print money. The declaration did not make the bank independent in practice. Inflation, around 20 percent before the change, rose to 140 percent by 2002, almost 600 percent in 2003, 66,000 percent in 2007, and 230 million percent in 2008. The episode illustrates how a policy formally adopted under an extractive political system could be emptied of effect when the president retained the power to override it.

Elections, opposition, and a weakening grip

The deterioration of economic performance helped create a serious political challenge to ZANU-PF’s one-party rule: the Movement for Democratic Change. Earlier elections had already exposed how narrow the space for genuine competition was. In the 1995 parliamentary election, ZANU-PF won 81 percent of the vote and 118 of 120 seats; 55 members of Parliament were elected unopposed. At the following year’s presidential election, Mugabe was reported to have won 93 percent, although his two opponents, Abel Muzorewa and Ndabaningi Sithole, had withdrawn before the vote, accusing the government of coercion and fraud.

By the 2000 parliamentary election, ZANU-PF’s grip had weakened. It won only 49 percent of the popular vote and 63 seats, all contested by the MDC, which took every seat in Harare. Mugabe won 56 percent in the 2002 presidential election. The book’s explanation is not that the electoral contest had become securely fair: both elections went ZANU-PF’s way through violence and intimidation as well as electoral fraud. The results show a regime losing support while continuing to use coercion and manipulated elections to retain power.

Mugabe’s response to this weakening political control was to intensify repression and use government policy to secure support. Starting in 2000, he encouraged and backed a wide series of occupations and expropriations of white-owned land. War veterans’ associations, supposedly made up of former independence fighters, often led the occupations. Some of the seized land went to these groups, but much also went to ZANU-PF elites. Thus a measure presented in the context of land redistribution also served the governing party’s political interests.

The lottery and the economic collapse

In January 2000, in Harare, master of ceremonies Fallot Chawawa drew the winning ticket in a national lottery organized by Zimbank, a partly state-owned bank. The lottery was open to clients who had kept at least 5,000 Zimbabwe dollars in their accounts during December 1999. The prize was Z$100,000—about five times the country’s annual per capita income—and the ticket bore the name of Mugabe, who had ruled since 1980. Zimbank said that his name had been drawn from thousands of eligible customers. The apparent stroke of luck stood in sharp contrast to his need for money: Mugabe had recently awarded himself and his cabinet salary increases of up to 200 percent.

The book treats the win not merely as a corruption anecdote but as evidence of the reach of Mugabe’s political control. If the president could win the lottery if he wanted, the episode offered a glimpse of how deeply extractive institutions shaped public life. The lottery’s small, specific circumstance—a president’s name on a bank’s winning ticket—condenses the wider argument: the scandal mattered because it pointed beyond itself, toward a political order in which those in power could shape institutions to serve their interests.

The land seizures further damaged confidence in property rights. Their insecurity contributed to the collapse of agricultural output and productivity. As the economy crumbled, the government’s remaining recourse, in the book’s account, was to print money to buy support, driving enormous hyperinflation. In January 2009, other currencies, including the South African rand, became legal to use; the Zimbabwean dollar then disappeared from circulation as a worthless piece of paper.

The economic and social consequences extended well beyond inflation. The best available estimate, despite unreliable national statistics, put per capita income in 2008 at about half its level when Zimbabwe became independent in 1980. The book cautions that even this comparison understates the deterioration in living standards. The state had collapsed and had more or less stopped providing basic public services. In 2008–2009, the deterioration of the health system contributed to a countrywide cholera outbreak. By January 10, 2010, there were 98,741 reported cases and 4,293 deaths, making it Africa’s deadliest cholera outbreak in the preceding fifteen years. In early 2009, the UN Office for the Coordination of Humanitarian Affairs reported an unemployment rate of 94 percent.

Legacy and political significance

The book places Mugabe’s Zimbabwe within a broader pattern in which an elite designs economic institutions to enrich itself and preserve its political power at the expense of the majority. In Zimbabwe, the elite is identified as Mugabe and the core of ZANU-PF, the movement that had spearheaded the anticolonial struggle of the 1970s. The particular form of rule differed from North Korea’s: Zimbabwe was not organized around the same communist model of one-party government, and Mugabe’s liberation credentials meant he had to maintain the appearance of electoral legitimacy. Yet elections could coexist with coercion, fraud, and the concentration of authority.

The transition from Ian Smith to Mugabe therefore changed who controlled the state without overcoming its extractive foundations. For roughly the first decade and a half after independence, the inherited institutions remained relatively untouched; economic arrangements changed in some respects, including the end of explicit racial discrimination, but the underlying structure continued to extract wealth. The book presents this as an instance of the iron law of oligarchy: Ian Smith’s extractive and repressive regime gave way to Mugabe’s own extractive, corrupt, and repressive regime. The lottery win in 2000 was the visible tip of that historically shaped system, while Zimbabwe’s subsequent economic collapse and loss of basic state functions showed its consequences.