International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue VI, June 2022 | ISSN 2454–6186
Lucia Mandongwe1*, Stanley Murairwa2, Phamela Dube3
1*Manicaland State University of Applied Sciences
2Africa University
3Manicaland State University of Applied Sciences
Abstract: The research reviewed theoretical and empirical studies on hyperinflation, its effects on boarding school budgets, and adaptation strategies that may be employed by the schools. A critical analysis from prior studies displayed that vehement hyperinflation is a challenge and betrays the purpose of operational budgets in boarding schools. The purpose of operational budgets to play an exceptional role in cost control, planning, organizing, and communication at both national and local levels is rendered useless with hyperinflation. An analysis of the legal framework for education as provided for by the Zimbabwe Education Act and the education policies was also performed so as to have a clear understating of how the financial aspects of boarding schools are executed. The results from the studies reveal that hyperinflation has a great negative impact on the operations of boarding schools. It leads to the destruction of schools’ lineament, reduced enrolment, increased arrears, more bad debts, budget deficit, litigation, rising operational cost, and decreased capital investments. The research further discovered that in order to adapt to hyperinflation, boarding schools must be creative and innovative, perform cost reduction and control, adapt to differentiation, online services, cost leadership strategy as well as continuous reviewing of the financial aspects. The research noted that the boarding schools were not spared from the effects of hyperinflation and their only alternative in such disruptive times was to embrace the suggested strategies so as to survive in a hyperinflation environment.
Keywords: Hyperinflation, Operational budget, Keynesian theoretical approach, Hyperinflation, Survival strategies
JEL Classification: H5, H52, H520
I.INTRODUCTION
The exponential growth rate of inflation in Zimbabwe which woes at a month-on-month rate of 321.59 percent on 26 February 2021, though declining, is still a cataclysm (Tradingeconomics, 2021). Notwithstanding the ululations and jubilations that once characterized Zimbabwe in the multi-currency regime (2009-2013), when the economy was stable, it is sad to notice that Zimbabwe has gone back to its melancholy. Zimbabwe was once overshadowed by a perturbing scenario in 2008; when it experienced hyperinflation of 80 billion percent in a single month (McIndoe-Calder, 2018). Indeed, Zimbabwe is failing to entirely rest from this economic monster as it has joined Venezuela and Lebanon which are trending in the world’s top