A Theoretical Assessment of the Operational Budgets in Hyperinflation Countries, Lessons from Boarding Schools in Zimbabwe: Effects and Survival Strategies

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.