Political Instability
A major institutional problem for Zimbabwe is its political instability and corrupt government. "The IMF reports that $600 million of diamond dividends to the state was initially budgeted for 2012, but only $45 million was actually received in the treasury." (Heritage.org) The Prime Minister Robert Mugabe's rise to power was tainted by the political violence against his opponents, and objection of many citizens. With so much corruption, it is likely that foreign direct aid is practically futile, and little of the infrastructure would be improved. What is so interesting about Zimbabwe is that is used to be one of the richest countries in Africa with one of the strongest economies, but now hyperinflation and mismanagement from a corrupt government has made it one of the poorest countries in Africa. This poor governmental system that Zimbabwe is currently suffering, delays economic growth and development because a corrupt government will not funnel money into programs designed to benefit Zimbabwe and help it grow, but will instead help them maintain power and benefit themselves. It is possible that by continuing to cripple the economy of Zimbabwe makes the citizens even more reliant upon the government.
Health Care/Infrastructure/Education
Zimbabwe's health care has been overshadowed by the threatening and ominous presence of HIV which has had a major impact on the country, along with an unstable economy that has had a crippling effect on the ability of hospitals to adequately function. Zimbabwe has been making progress in improving the quality of care provided, but life expectancy is still very low. In 2012, the life expectancy for women was 58.82 years and for men 57.31 years(CountryEconomy.com). This is an improvement from previous year, when Zimbabwe was declared to have the lowest life expectancy, but is very low compared to other developed countries, and even some developing countries. Zimbabwe's poor health care is a result of poor infrastructure and sanitation, as well as limited health conscientiousness by the general public. Improving education about sanitation and HIV/AIDS, would be a great way to combat the epidemic the country is struggling with. "At the height of the crisis, in 2008 - during which food insecurity and waterborne disease were widespread, and schooling was disrupted by political violence and teacher strikes - the pass rate for the final year of primary school dropped to 52 percent. The previous year, it had been 70 percent." Zimbabwe's attempts to improve education will be expanded upon later. If Zimbawbe were to take steps to improve its infrastructure, health care would likely improve in general. This would be one effective way to overcome this institutional barrier. However, because of the state the current government is in right now, improvements in infrastructure are likely to be a slow process.
Legal systems
Zimbabwe's legal systems have been under scrutiny for many years by many countries. Many members of the public argue that a large majority of higher judges are not impartial, and that "judicial officers have been compromised by being granted fully equipped, profitable, and tax-free farms since Mr. Mugabe began awarding white-owned farms to ZANU-PF supporters in 2000." (VOA News) Land/farm dispute is one of the biggest current battles in Zimbabwe's legal system, as land dispute is a major movement and issue in the country. Because property rights is one of the biggest problems in Zimbabwe, this can majorly slow economic development in the country, as if land owners cannot be sure of their ownership, they are unlikely to do much to improve the land, and investments will be greatly reduced.
Financial services/banking
Zimbabwe's banking systems are suffering, due to a rocky economy caused by hyperinflation. "ZIMBABWE’S banking sector faces tough times in 2014 due to a generally tough economic environment with at least three banks expected to lose their operating licences, top economists say." (Zimbabwe Independent) The US implemented a new $100 million minimum capital requirement, a sum that many non-international banks in Zimbabwe are struggling to meet. The struggling banks in Zimbabwe are a reflection of Zimbabwe's struggling economy. With unstable financial services in Zimbabwe, investment is discouraged and limited, which doesn't aid the economy in any way.