Price control as a means of consumer protection in Zimbabwe: A review of the price formation system

Abstract

This paper has been written as a response to a workshop on price control and consumer protection held at the Park Lane Hotel from 9th to 11th September, 1987. Several papers were presented at this workshop which was jointly organised by the ZCTU and the Consumer Council of Zimbabwe. The present paper therefore provides a synthesis of the insight of the position papers presented by the following parties with regard to price control and consumer protection: • Government - Ministry of Trade and Commerce • ZNCC - Private sector (CZI and EMCOZ were not represented). • ZCTU - Employees' umbrella organisation. While this paper provides a synthesis of the position papers presented at the workshop, it also gives an analysis of the three positions taken by the abovementioned parties and concludes by providing "our perspective" on price control and possible short as well as long-term solutions. Of all the consumer protection mechanisms, only price control will be dealt with in this paper. This stems from the central position of price control in the debate on the policy of Growth with Equity, i.e. planned economic growth and distribution of the national cake. It also follows that consumer protection from exploitation is conditioned by the degree of effectiveness of price control.