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Tuesday, 13 April 2010 23:59 UK
Under President Robert Mugabe's land reform programme, some 4,000 white
farmers have been driven away and their land given to black farmers. The BBC's
Dan Isaacs talks to Zimbabwe's new farming class.
Endy Mhlanga, a war veteran of Zimbabwe's war of independence, sits with me
in the garage of his recently acquired farmhouse.
A pot of maize meal bubbles on an open fire beside us.
It is getting dark, but there is no electricity. Power cuts - often lasting
days - are a regular feature of life here. And the mosquitoes are descending.
"As war veterans we are satisfied that the programme of land reform has
succeeded," Mr Mhlanga tells me.
"It might not be 100%, but now the land is with the people of Zimbabwe."
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Had they agreed to share nicely, none of these troubles would have
happened 
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Mr Mhlanga's farm is on prime agricultural land, but now most of it is lying
fallow.
What was once a large commercial farm now produces nothing for export, and
where once there were intensively irrigated fields of wheat and tobacco, rough
grassland now stretches into the distance.
One small field of maize is growing near the farmhouse, a few turkeys cluck
their way around an old tennis court, and a dozen or so cattle graze at the
bottom of the garden.
"We have the ability to work on the land," explains Mr Mhlanga, "but we're
prevented from doing so because of a lack of funding.
"Investors aren't forthcoming, so we aren't able to do much with the land.
For us, this is really a silent war."
A decade ago, there were more than
4,000 white-owned farms in Zimbabwe.
But years of President Mugabe's land reform programmes have forced these
farmers out, markedly changing the Zimbabwean farming scene and jarring the
agriculture-based economy.
Today, there are just a few dozen left, and many of those have now been
served with eviction orders.
As a former secretary-general of the country's pro-Mugabe war veterans
association, Mr Mhlanga was actively involved in those evictions, and now
recalls the violent tactics used to force the white farmers to leave.
"I don't have any regrets," he tells me. "Had they agreed to share nicely,
none of these troubles would have happened."
The collapse in agricultural output across the country has had catastrophic
consequences for Zimbabwe's economy.
Some four million people have fled the country over the past decade, and
although economic conditions have improved recently, the overwhelming majority
of those who stayed no longer have formal employment.
Rose garden
Johannes Vengesai lost his job when the farm he was working on was occupied
by the "war veterans".
He was thrown out of his home as well, and he now lives with his family in a
disused tobacco silo.
Stan and Jane Kasakwere say their new land is a
birthright |
It is a squatters' life - he has been threatened with eviction from here too
but says he has got nowhere else to go.
"What bleeds my heart," says Joseph, a farmer who was evicted from an
adjacent citrus farm, "is that if we leave the land lying idle like this, we're
not growing any future for ourselves."
As we look out over thousands of
untended citrus trees he explains that all they produce now are shrivelled,
bitter lemons.
"As a country we are losing millions of dollars, and as ordinary Zimbabweans
we can no longer afford to send our children to school."
But it is a very different country for those who have directly benefited from
the land reform.
At the farmhouse now owned by Stan and Jane Kasakwere, lunch has been set out
in the garden under a spreading jacaranda tree.
The well-tended lawn
sweeps down to a rose garden and swimming pool. Beyond the fence, their land
stretches as far as the eye can see.
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If we leave the land lying idle like this, we're not growing any
future for ourselves 
|
Mr and Mrs Kasakwere are supporters of President Mugabe's Zanu-PF party, and
they have been allocated this previously white-owned farm on rich agricultural
land.
It is not long before the lunch talk turns to politics.
"This is my country, the land is my birthright," Mrs Kasakwere tells me.
"I feel sorry for the previous white owners of this farm, but I don't feel
guilty. It's a tough world."
"What Mugabe has done is break the ice," says Mr Kasakwere.
"He's the first African leader to stand up publicly and criticise our former
colonial masters. Mugabe is one hell of an African leader."
'Revolution'
A minority of well-connected Zimbabweans have benefited from the reforms, but
the overwhelming majority are far poorer than they were a decade ago.
And because of the violent and politicised way it has been carried out,
support for President Mugabe has fallen sharply.
But to challenge the reform process is to be seen as both a colonial puppet
and against black empowerment.
So, despite his lack of popularity, Mr Mugabe's political opponents have so
far found it impossible to defeat him.
Many farm workers have been left unemployed as a result of the
seizures |
This is why for the time being - and after long and slow deliberation - they
have entered into an alliance with Mr Mugabe's Zanu-PF party.
It is this unity government that has brought about a degree of economic
stability, and a reduction in political violence.
But the farm invasions have continued to this day, and no political group
within this fragile coalition has called for them to be stopped, let alone
reversed.
Back in Harare, it was not hard to track down the owner of one of the
abandoned citrus plantations I had visited.
"You've got to understand, that we've been through a revolution," explains
Bright Matonga, a former government minister, and currently a Zanu-PF member of
parliament.
"Things have calmed down now, and soon production will pick up."
When I asked him about his forlorn citrus tree plantations and the destitute
workers living nearby, he blamed a lack of credit available from banks and the
"sanctions" being imposed on Zimbabwe.
"I think, rather than to criticise the land reform process," he argued, "you
have to understand that it had to take place and that it is now irreversible."
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Gender
Composition of Zimbabwean Rights Body Challenged As
Unconstitutional
http://www1.voanews.com
Legislative monitor Veritas said Section 100 R (3) of
the Zimbabwean Constitution specifies that at least four members of the
commission should be women, but only three were sworn in by President Robert
Mugabe
Ntungamili Nkomo | Washington 13 April 2010
Zimbabwean
non-governmental legislation monitoring organization Veritas and legal
experts have challenged the composition of the new Human Rights Commission
saying it violates the constitution because the number of women on the panel
falls short of what is prescribed.
Veritas said Section 100 R (3) of the
Zimbabwean Constitution specifies that at least four members of the
commission should be women, but only three were sworn in by President Robert
Mugabe last month following the commission's formation.
Veritas said
in a news release: "This defect will have to be put right as a matter of
urgency ... Presumably, one of the male members will have to resign to allow
for a fourth woman to be appointed."
House Speaker Lovemore Moyo told VOA
Studio 7 reporter Ntungamili Nkomo that the gender shortfall was due to an
error on the part of Mr. Mugabe who mistook the name of one of the men for
that of a woman, saying the mistake will be corrected.
"My
understanding is that [Mr. Mugabe's] office is working on fixing it," Moyo
said.
The female members of the newly-formed rights body are Ellen
Sithole, Nomathemba Neseni and Kwanele Jirira. Their male counterparts are
Reg Austin, Japhet Ndabeni-Ncube, Elasto Mugwadi, Jacob Mudenda, Joseph
Kurebwa and Carroll Khombe.
Because the Human Rights Commission is a
first in Zimbabwe, Parliament has yet to come up with an act governing its
functioning. Rights activists have hailed the body's introduction saying it
will help prevent human rights breaches by the government and particularly,
state security apparatus.
Zuma
drops Zim sanctions issue during US visit
http://www.swradioafrica.com
By Alex Bell 14 April
2010
South African President Jacob Zuma has surprised his critics by not
lobbying for the removal of Zimbabwe's targeted sanctions while on a state
visit to the United States this week.
Zuma has been in the United
States this week meeting with US President Barack Obama on matters of
diplomatic and trade relations. A similar visit to the UK last month saw the
South African leader take up ZANU PF's rallying call for the targeted
measures to be dropped. This pressure, which was condemned by British rights
groups, was resisted by British Prime Minister Gordon Brown. Brown argued
the measures would remain until there was more progress by the unity
government, echoing the European Union, which this year extended their
sanctions on the Mugabe regime by another year.
Zuma renewed this call
while in Uganda recently and again in his own country's parliament late last
month. Zuma, as the regional mediator in Zimbabwe's political crisis has
been tasked with ending the deadlock reached by the rival parties in the
fragile coalition government. The parties have been divided over outstanding
issues in the Global Political Agreement (GPA), with ZANU PF stating it
would not be making any concessions to the MDC unless the international
sanctions are removed. The MDC meanwhile, which ZANU PF says is responsible
for the sanctions being in place, has been making all the concessions to try
to force progress, but to no avail.
It was widely expected that Zuma
would once again use a state visit to lobby on Robert Mugabe's behalf, but
he has reportedly steered clear of the topic with President Obama. Observers
have commented that this has been a deliberate move by Zuma's office, in the
aftermath of damaging comments by ANC Youth league leader Julius Malema.
Zuma was last week forced to publicly announce his sincerity in mediating
Zimbabwe's talks, after his protégé, Malema, publicly denounced the MDC and
aligned the ANC with ZANU PF. Zuma quickly denied this, saying he was
supportive of both parties in the unity government.
Political
commentator Professor John Makumbe told SW Radio Africa on Wednesday that
Zuma is clearly trying to 'mend fences' after Malema effectively 'outed' the
ANC as supporting ZANU PF.
"Zuma is trying to emphatically state that he
does not support one party over another," Makumbe said. "Malema's comments
have put him in a really embarrassing and difficult position, especially so
close to the World Cup."
EU and U.S.
Exhibitors Stay Far Away from Trade Fair
http://www.ipsnews.net
By Ignatius Banda
BULAWAYO,
Zimbabwe, Apr 14 , 2010 (IPS) - Companies from the European Union and the
U.S. will not feature at this year's Zimbabwe International Trade Fair
despite the formation of a government of national unity last year.
The
formation of the government of national unity in Feb 2009 between President
Robert Mugabe's ZANU-PF, long-time rival and current Prime Minister Morgan
Tsvangirai's MDC and the Arthur Mutambara MDC faction was seen as holding
the opportunity of thawing the decade-old trade and investment stand-off
between Zimbabwe and its erstwhile major trading partners.
But the EU
and U.S. remain wary of the shaky coalition as Mugabe refuses to make
crucial concessions and implement sections of the so-called global political
agreement that led to the formation of the government.
Early this year,
the EU extended sanctions against Mugabe that restrict him, members of
ZANU-PF and their companies from having dealings with the EU.
"In view of
the situation in Zimbabwe, in particular the lack of progress in the
implementation of the global political agreement signed in September 2008,
the restrictive measures ... should be extended for a further period of 12
months," the EU said.
Established more than 60 years ago, the trade fair
has historically been the country's investment barometer. Last year the
exhibition was on the verge of cancellation after potential and traditional
exhibitors showed little enthusiasm to participate.
Companies from
countries like Germany last featured at the trade fair in 2001 before
relations between Zimbabwe and the West soured in the wake of Mugabe's
anti-democratic clampdown. Investors have fled Zimbabwe, citing years of
hostile economic policies under one of Africa's longest serving
leaders.
While officials from the U.S. embassy in Harare told IPS
they did not have any information on the participation of U.S. companies at
this year's fair, there will be no U.S. companies exhibiting, according to
March figures released by the trade fair's general manager Daniel
Chigaru.
By the end of March, about 95 percent exhibition space had been
taken up, Chigaru told local media. Chigaru said there was an increase in
foreign exhibitors this year, compared to last year. Among the 14 countries
represented at the fair, India, Iran and Indonesia had confirmed their
participation.
Timothy Gerhadson, the U.S. embassy's public affairs
officer in Harare, told IPS "there are no trade restrictions between the
Zimbabwe and the U.S." and noted that "bilateral trade has increased
significantly in recent years". He did not elaborate on the volume of
trade.
"We expect more U.S. companies will consider Zimbabwe as a
business destination if the government succeeds in reducing risks that tend
to impede trade and investment," Gerhadson pointed out.
Analysts say
the absence of exhibitors from the EU and the U.S. could mean Zimbabwe has a
long way to go toward attracting tangible investment if the country is to
regain its position as one of Africa's strongest economies.
ZANU-PF is
pushing legislation that will nationalise foreign investments. Economists
warn that this is against the spirit of economic recovery envisaged by the
formation of the government of national unity and will only serve to fuel
investor flight.
The British based Economist Intelligence Unit (EIU) has
reported that these nationalisation plans - which have been opposed by
Tsvangirai - are convincing foreign investors to stay away. The EIU is a
research and advisory firm that provides country, industry and management
analysis.
The effect of these plans has been felt in the preparations for
the trade fair, believes Bulawayo-based economist Titus Njini.
As
long as there is no consensus within the coalition government on the way to
return the economy to mid-1990s levels, the trade fair will just be one of
those shows held to save face, Njini told IPS.
"However, I believe the
trade fair could still be relevant in the future for investors to know
whether they can put their money here," he added.
This year's trade fair,
with the theme "Unlocking Our Investment Potential", kicks off on Apr 20 and
runs to Apr 24.
Zimbabwe
Bus Crash Kills 25, Injures Dozens
http://news.radiovop.com/
14/04/2010 18:10:00
Harare,
April 14, 2010 - At least 25 people were burnt to death and two dozen others
injured when a bus collided with a truck laden with fertilizer on a highway
in northwestern Zimbabwe, state radio reported on Wednesday.
The accident
occurred on Tuesday night, and the Zimbabwe Broadcasting Corporation said
many of the casualties were believed to be Zambians traveling to South
Africa.
There were no further details on the accident, near Karoi, 300 km
northwest of Harare. Reuters
Compassionate
few helping hundreds of Zims in SA
http://www.swradioafrica.com
By Alex Bell 14 April 2010
As
the crisis facing thousands of Zimbabwean refugees continues in South
Africa, the work of a small but compassionate aid group in Cape Town is
being praised.
The Adonis Musati Project (AMP) was named after a
young Zimbabwean boy who died of starvation on the streets of Cape Town in
2007, while awaiting his asylum papers. He is just one of untold numbers of
mainly Zimbabwean refugees who have become the often forgotten victims of
South Africa's refugee plight, where thousands of people are left without
food or shelter while trying to gain legal asylum.
Distressed that
such a tragedy could occur unnoticed in the middle of one of the most
vibrant and progressive cities in Africa, Gahlia Brogneri and Terry Hodson
founded the AMP to provide support and assistance to Zimbabwean refugees
seeking asylum. Over the past three years, the project has been extended to
include refugees of all nationalities and also to assist as many South
African homeless people in Cape Town as possible.
To date, the AMP, with
a small voluntary managing team of ten people and 20 additional volunteers
has assisted thousands of refugees with food, clothing, training and
accommodation. It has more than 300 refugees on its 'books,' who are being
helped and guided towards independence. The group last year also launched a
youth shelter that helps put young, homeless children back into education
systems, giving them a chance to succeed as adults. The children have mainly
been young Zimbabwean refugees who fled their country to escape violence and
economic collapse.
"How we respond as a nation to the human suffering of
the refugees entering South Africa in search of help is often dependent upon
our own situation," AMP founder Brogneri to SW Radio Africa on
Wednesday.
Brogneri said how, in South Africa there is very little
assistance given by the government for refugees, explaining that the
official response to the plight of refugees is 'shocking.' She explained how
refugees are often rounded up and arrested by police officials as part of a
suspected unofficial government directive to remove the 'unsightly' numbers
of refugees living on the city's streets.
This same issue has been
highlighted in a recent report on the state of the Zimbabwean refugee
plight, which detailed how this 'clean up' operation is in full swing ahead
of the football world cup. The report by the Solidarity Peace Trust detailed
how Zimbabweans continue to live in appalling conditions, suffering ongoing
xenophobic violence and facing arrests as authorities try to move them out
of sight during the tournament.
"These migrants, mostly undocumented,
live on the edge of survival, often in appalling circumstances," the
organisation said.
Zimbabwe’s
list of shame and Oskar Schindler’s list
http://en.afrik.com/article17341.html
Wednesday 14 April 2010 / by
Rejoice Ngwenya
"He who saves the life of one man, saves the world
entire.", so says Ben Kingsley acting as Itzhak Stern in Steven Spielberg’s
award-winning 1993 epic film ‘Schindler’s List’. I had never seen this movie
until recently, although I had read a few things about it back then.
Instinct tells me there are people who are placed in this world for a
specific purpose – and one such man was Oskar Schindler.
It is
impossible to appreciate the intensity of this film without drawing
parallels with modern-day genocide in Rwanda and Darfur. Moreover, had there
been such a man in Robert Mugabe’s ZANU-PF, my very own Zimbabwe would have
been spared the horrors of Gukurahundi, the agony of Murambatsvina and
subsequent habitual electoral persecution of MDC activists.
Stories
are recounted how ZANLA forces – the military wing of ZANU-PF – indulged in
gruesome Maoist-style murder of defenceless villagers who they branded
traitors. Barbaric rituals were conducted at Kangaroo-court gatherings meant
to whip villagers into collective liberation conformity. The echoes of
despair still ring loudly in the ears of our mothers – thanks to the
NAZI-style bloodthirsty strategy of The Hague-bound ZANU-PF killing
machine.
But watching Liam Neeson portray a response to life in the
Nazi party and its corruptive and destructive nature reminds one of how the
resilience of Zimbabweans can prevail over the ferocious vindictiveness of
our very own ‘extermination force’ – ZANU-PF. The conflict of ideology
between the Jewish Council and the NAZI has uncanny congruency with
ZANU-PF’s corrosive self-centred dogma weighed against the defenceless
innocence of the people of Zimbabwe. The history of this political party is
testimony to the propensity and magnitude of mankind to inflict
Babylonian-style misery upon fellowman. This is a party that failed
miserably to transform itself from a liberation force of coercion to a
people-centred governing entity.
Sensible people learn from history,
while fools wait for history to teach them a bitter lesson. Never mind the
EU’s 200 member ‘list of shame’ that isolates ZANU-PF big wigs on crime
against humanity, just a quick scan will give one an idea who has a case to
answer. One-man presidential racer Robert Mugabe, defence minister Emmerson
Mnangagwa, air force commander Perence Shiri, army general Constantine
Chiwenga, state minister Didymus Mutasa, police commissioner general
Augustine Chihuri, national security minister Sidney Sekeramayi, former home
affairs clown prince Enos Nkala are some of the names that must be on the
roll call of post-liberation war accountability. Retired general Solomon and
vice president Joyce Mujuru, women activist Opah Muchinguri and the
eccentric former Zimbabwe Unity Movement opposition leader Edgar Tekere have
of late assumed an aura of humanity, but may offer invaluable insights into
the diabolical inner workings of ZANU-PF’s repressive modus
operandi.
Back to Schindler’s List, as the allied forces descend on
Auschwitz to free Jewish captives, somewhere in a Berlin bunker, Adolph
Hitler takes his worthless and crooked life. Object lesson two: ZANU-PF and
its power-drunk cronies must know that the end is always as inevitable as
the beginning. In 2000, four million Zimbabweans voted overwhelmingly for
Mugabe to redeem himself by retiring gracefully, but he stubbornly remained
glued to the throne of disgrace. As late as 17 and 18 March 2010, Jacob Zuma
of South Africa brought a truckload of olive branches to shelter the ageing
dictator from further misery, but the man trades value-adding reason for
perishable impunity. My question remains: who among ZANU-PF men will stand
out as the voice of conscience before the proverbial doors of mercy
close?
It is on record that Adolph Hitler’s killing machine accounted for
not less than three million innocent Jewish lives, yet within this
pulverising phenomenon, we get a Schindler who stands out as a sole pillar
of sanity. It is impossible to see how, out of thousands of Zimbabweans in
ZANU-PF structures, one cannot encounter a single soul with a morsel of
humanity. There are those like me who sincerely believe that fallen ZANU-PF
revolutionaries like Herbert Chitepo and Josiah Tongogara would have
borrowed a leaf from Oskar Schindler’s heroic life. Chitepo’s disputed
‘assassination’ in a car bomb in Lusaka and Tongogara’s infamous ‘car
accident in the injury time of Zimbabwe’s liberation game’ in Mozambique
have raised an intriguing array of permutations.
Chitepo was a
powerful and sophisticated barrister whose political leadership skills made
Robert Mugabe look like a mere high school prefect. He was of the ‘minority’
Manyika clan from Eastern Zimbabwe, a breeding ground of political
aristocrats like Ndabaningi Sithole, Simba Makoni and of late, Morgan
Tsvangirayi and Arthur Mutambara. Tongogara was seen as the ‘sensible
figure’ of ZANU-PF’s military command, also of a ‘minority’ Karanga clan
that produced constitutional expert Edison Zvobgo. All arguments around
ZAN-PF’s current factional friction point to that Mugabe’s ‘majority’ Zezuru
clan has laboured to keep out Manyikas, Karangas and of course, Joshua
Nkomo’s Ndebeles from the circle of influence. This theory ends with a
sinister insinuation – ZANU-PF was and is willing to kill to preserve Zezuru
hegemonic hold on political power. Object lesson number three: there are
those in ZANU-PF who seem overwhelmed by the collective force of destruction
yet they can still peer through a crevice of hope that early disclosure can
be rewarded with mercy and forgiveness.
According to Mail & Guardian
blogger William Saunderson-Meyer, Jacob Zuma once warned, “When history
eventually deals with the dictators, those who stood by and watched the
deterioration of nations should bear the consequences.” While Oskar
Schindler is now in the annals of world history, modern technology has put
his life at the disposal of Mugabe’s politburo and central committee
members, projected on the popular screen of enlightenment that it is never
too late repent. Just as it was in the days of King Belshazzar of Babylon,
the invisible hand of destiny writes that their days are numbered. He or she
that can read can miss the message only if they choose to take the blind
literary alley.
Mr. Ngwenya is president of Coalition for Liberal Market
Reforms in Zimbabwe and affiliate of African Liberty.
Zimbabwe GNU Watch - March 2010
[2010 April 14]
The Zimbabwe GNU Watch provides an overview, month by month, of political
developments under the terms set out in the Global Political Agreement (GPA).
The sections profiled in monthly outputs may vary depending on events and issues
raised in that particular report. Where possible, the relevant article as
stipulated in the GPA has been provided. As this documentation began in April,
there may at times be references to activities or events that took place in
previous months.
Download the full document
below.
Zimbabwe GNU Watch - March
2010GNU Watch March 2010.pdf
Zimbabwe’s
economic prospects for 2010
http://www.thedailynewszw.com/?p=28891
April 14, 2010 John Robertson
(A
paper presented at the ‘Labour Relations Under Dollarisation’ Conference,
March 25, 2010)
WHEN Zimbabwe’s currency failed and the country’s
authorities had to settle for the best option available, the formal
acceptance of the US dollars and South African rands that had found their
way into the hands of Zimbabwean shoppers and traders, became that best
option. Government had only to legalise the use of these currencies to bring
about important changes to the lives of all Zimbabweans.
Most of us
were greatly relieved to be able to work for and spend money that did not
lose value. Shopkeepers, who previously were supposed to apply to the
Reserve Bank for foreign exchange, could use the money they received from
customers to replace their stocks, as well as to meet their business
expenses, and shoppers who were earning or receiving funds in stable money
could now legally spend the cash. That allowed them to avoid all the
problems that went with having to find and carry around billions or
trillions in bricks of banknotes that nobody really wanted.
However,
not everyone was happy. Large flows of money, which had been keeping many
people going while government could print lorry-loads of it, simply
disappeared, so the subsidies needed by resettlement farmers stopped and the
ability to buy US dollars with Zimbabwe dollars also stopped. This was a
serious problem for those who had easy access to vast quantities of Zimbabwe
dollars and the privilege of buying their US dollars at the official
exchange rate.
I suspect that few of us shed tears for the lost incomes
of those who had used their influence and privileges to capture scarce
foreign exchange and turn it into huge profits, but we were all affected by
the very severe shortage of foreign currency in the country. We often
wondered how much was in circulation, but in fact most of it was coming into
the country in the form of export earnings and remittances, but quickly
leaving the country again to pay for the supermarket items, fuel and
industrial materials we had to import.
Very little of it was left to
accumulate within the country. Even when earnings in US dollars were paid to
us as we earned our keep in our businesses, or worked for government, we
would spend most of it in the shops on imported items. The shopkeeper would
then send most of it out of the country to pay for replacement
stocks.
Money put into the banks typically did not stay there long. Most
individuals and businesses needed their deposits to meet commitments within
weeks or even days of depositing it, so the banks could not easily meet
demands for loans when their deposit base was almost all about to be
withdrawn.
Many companies with international connections were able to
obtain some help from parent companies abroad, or perhaps credit terms from
suppliers, but these proved hard to manage and difficult to repay when sales
were sluggish or local customers kept the businesses waiting for
payments.
But for those trying to produce goods in Zimbabwe, in many
cases the sales were hard to make because goods of better quality and at
lower prices were readily available from South Africa.
Dollarisation
affected importers and exporters in ways that should not have surprised us,
but often did. In the past, we had supported local suppliers because we
could pay them in Zimbabwe dollars and save our precious foreign exchange.
And if we could find export markets, we sent as much as possible out of the
country to earn more of that precious foreign exchange.
But after
dollarisation we were paying foreign exchange to local as well as foreign
suppliers and we could earn foreign exchange by selling our goods to
customers here at home. That caused significant behavioural changes, but
also brought into sharper focus the quality, pricing and dependability
issues that can make, or break, any company that has to be competitive to
survive.
We are here today to talk about the way that dollarisation
affected labour issues, so now would be a good time to make the point that
the people affected most directly by dollarisation were mostly engaged in
buying and selling, not in making anything. I also have to make the point
that large numbers of these buyers and sellers were not employed by any
formal, registered enterprise, were not members of trades unions and were
not represented by workers’ committees.
We all know who they were.
They were cross-border traders, fuel importers, moneychangers and
facilitators. And they were mostly very good at their chosen field of
endeavour because those who were not skilful operators soon lost out to
those who were. But when the country dollarised, very nearly all of them
lost out.
Most of the informal cross-border traders are no longer needed
now that wholesalers and retailers can order container-loads and get bulk
discounts, only the most efficient of the fuel importers have survived
because no cheap US dollars are available and moneychangers have been
rendered redundant.
I make these points to bring the focus back onto the
people who do formal work for formal, registered companies and who make
things, provide services to others who make things, or offer the full
marketing services needed to sell the things that others have made. Of
course, many formal jobs are not easily classified in these terms because
they are services that support other services, but most of them would not be
needed if somebody somewhere was not producing and selling a tangible
product.
So we need bankers, lawyers and accountants, and we also need
transporters, builders and sales-people. We can all think of many more to
add to that list, but would like to steer your thoughts to the range of
things Zimbabwe used to make, the range it is making now and the range it
could be making if we organised ourselves properly.
We don’t have to
list them in detail, but I can tell you that the Confederation of Zimbabwe
Industries used to publish a book that listed six thousand products from
Zimbabwe’s factories. Everyone here is old enough to remember when most
goods in the shops were made in Zimbabwe. You will all be aware that now
very nearly all the goods come from somewhere else.
How are we going to
get back to where we once were, and how are we going to move from there to
become what we can become – a country that would best be compared to
countries in Europe rather than poor developing countries?
The
single-word answer to that question is INVESTMENT. We need it, but we are
not getting it. The answers to the questions of why Zimbabwe needs it, what
investors could achieve if they were encouraged to make their investment
commitments in Zimbabwe and how wealthy Zimbabwe might become if nothing
stood in the way of investors, are almost all economics answers.
But the
answers to the questions about why not very many of the investors of the
past are still functioning, why not many are considering coming to Zimbabwe
– or coming back to Zimbabwe – and quite a few of those in Zimbabwe now are
thinking of leaving, are almost all political answers.
These answers,
both economic and political, are seldom single-word answers, but some of
them are, and others are quite short. Confidence is one of them, and the
threat to property rights is another. Some are tied to the rule of law, some
to freedom of association and some to freedom of expression. In other words
they are tied to civil rights that are so normal and so often taken for
granted that they are seldom even mentioned in successful democratic
countries.
We need to do more than mention them ourselves because their
presence or absence determines whether investment will take place. And that
is important because whether investment happens will determine whether or
not job creation will happen.
However, this conference needs to be
reminded that a third influence can impact on how keen investors are to
engage in job-creating investments. That is the productivity of labour, and
productivity is the measure of, or the ratio between, the value of output
and the costs of achieving that output. Investors have to take this subject
very seriously because events that affect productivity can quickly destroy
an investment.
A company that is made profitable by high labour
productivity will be engaged in creating wealth and the wages paid are
labour’s share of that wealth. If the profitability dies away because the
costs of labour and other inputs balance the price received for the finished
goods, the investment shows no return and the investor will be under
pressure to fix things, give up or move elsewhere.
When the costs
become higher than the revenues, wealth is being destroyed. If a remedy is
not urgently found, the investor will soon be history, and so will all the
jobs.
If the problem is caused by foreign competition at higher quality
or lower prices, raw material supplies or costs, power cuts or transport
problems, the only variable under the company’s influence might be labour
productivity.
In other words, in difficult times, the only way some
employers can hope to survive long enough to deal with the bigger problems
of infrastructure and changes in local or external markets is through the
increased efficiency and productivity of their employees. We are in
difficult times.
But the problem has other dimensions. The degree to
which people are needed to carry out work has become more and more affected
by the work that can be done by machines.
In a great many ways,
investors can make a choice between hand-made and machine-made processes,
and with computers and microchips, servo-motors and sensors that can measure
anything measurable, the number of ways of automating and mechanising
industrial processes is increasing all the time.
Many jobs are therefore
disappearing, but many jobs that did not even exist a short time ago are now
the very best jobs to have. Somebody has to design those machines, somebody
has to assemble them and somebody has to maintain them. And all of these
people are far better paid that the people who used to sew, or solder, or
weld or screw things together on production lines.
Whatever job you are
doing now, try to imagine how it might change. Everywhere, people have to
move with the times and they have to invest in themselves by upgrading their
skills. If they are lucky, their employers will help, but they should not
sit down and wait to become lucky. Real empowerment is a process of
self-empowerment. Very few people have been lucky enough to be empowered by
somebody else.
I mentioned other dimensions, and in Zimbabwe we are
always confronted by the political dimension.
Zimbabwe’s enlarged and
revised development document, which we called STERP II, the authorities’
second attempt at a Short Term Emergency Recovery Programme, was said to
show the way to economic recovery. I was disappointed to find that it
included no evidence at all that the recovery proposals included efforts to
repair the damage deliberately done to our economy or our investment
climate.
If some sign that we were prepared to learn from mistakes and to
rectify those that set us back, I think foreign assistance would have been
offered. But no such lines appear in the text, and nor were there any that
addressed the fact that the country’s problems are as serious as they are
because decisions were taken to close down Zimbabwe’s biggest business
sector and biggest employer, the commercial farms. These also constituted
Zimbabwe’s biggest exporters and biggest contributor to tax
revenues.
The failures of most of our farming activities and their many,
many consequences can be directly linked to the eventual hyperinflation and
then the collapse of the Zimbabwe dollar.
STERP II does make the
statement that “The Framework strategies to transform Zimbabwe’s agriculture
will involve a greater reliance on efficient inputs delivery and farm output
marketing systems and a smooth integration of agriculture with the domestic,
regional and international markets.”
These phrases suggest that Zimbabwe
has chosen to place its trust in bureaucratic procedures, not people. It
found no need to accept the thought that the economy has any need of people
who can call on experience, business acumen and talent.
And in the
belief that this approach would be found acceptable to the donor community,
the government started asking for assistance, not to put things right by
adopting more suitable policies, but to give us the money we can no longer
earn.
We certainly need plenty of it. We need it to meet import bills, to
make up for lost tax revenues and to meet our recovery expenses, all because
we have decided not to go back to policies that would have allowed investors
to rebuild the capacity to earn the money ourselves.
Our decision not
to fix what we broke has impressed nobody. The donor countries are happy to
stay away.
The development agencies know full well that our problems are
self-inflicted. And the world keeps reminding us that we have failed to
settle our debts. Almost no money has come. The Minister of Finance accepted
in a statement two weeks ago that if we want it, we have to earn it. So we
must all wake up and get back to work.
Recovery prospects
A
little over a year ago, when Zimbabweans were permitted to legally use
foreign currency, the use of the relatively stable currencies permitted the
immediate disappearance of inflation. This change made the early months of
2009 significantly different from the closing months of 2008, but progress
since then has been slow.
The plans I believe are needed to establish
an actual workable economic recovery appear to have been overlooked as, so
far, they have not appeared on the agenda at the meetings of the GNU. They
should, first, concentrate on the policy changes needed to place the Rule of
Law onto a sound footing and to repeal all laws and regulations that
interfere with the acquisition, ownership and marketability of property. And
I am referring to all forms of property, whether these be areas of land,
mining claims, financial instruments or company shares.
Secondly, a
reasonable plan should identify the sequences of events needed to restore
Zimbabwe’s physical and social infrastructure to acceptable levels of
efficiency and dependability. Preliminary estimates could be made of the
scale of restoration work needed to bring existing roads, railways, airways,
power, telecommunications, municipal water supplies, hospitals, schools and
colleges back to acceptable operating standards.
If we had
forward-looking policies that showed a commitment to restore an attractive
investment climate, we could invite experts to make estimates of the time
and funding that would be needed to restore each of our utilities and
services. Formal proposals could then be drafted to invite the participation
of local and international bodies.
If Zimbabwe were considered to be
deserving of assistance by virtue of extensive policy changes, its prospects
of floating syndicated long-term loan stock issues on international capital
markets would improve, and would quickly gather momentum once the first
signs of success had become evident.
For some of the challenges,
proposals for the privatisation of certain parastatal organisations could be
presented in correctly drafted prospectuses. Others might require work to be
put out to international tender to meet the requirements of funding
organisations or donor countries, while for certain projects the main
concern might be to simply attract back to the country the skilled personnel
we have lost.
A plan that covered this ground would no doubt leave
further political problems in need of attention, all of which will deserve
careful thought and special attention. But Zimbabwe should prevent these
from derailing efforts to achieve full recovery by ensuring that the
selected solutions were forward-looking, rather than based on claimed
entitlements because of past events.
Undiluted attention has to be
focused on actions that can deliver recovery and growth. Achieving success
and restoring dependable flows of income from the efforts of people with
proven technical and managerial skills would leave Zimbabwe far better
placed to deal with the challenges caused by past errors of
judgment.
Investors will need reasons to feel confident that political
issues over which they have no control will not derail them. They will want
to feel that the investment climate within the country and region concerned
is acceptable and will remain acceptable.
They will also want
assurances that the conduct of other people who can influence the investment
climate will not be too unpredictable and that the investment climate on
offer will provide the needed protection.
People who can take the
initiative to accomplish something usually show energy, vision, enterprise
and courage in initiating a process that is intended to lead to something
new. We have many people like that, but quite a few of them are planning to
leave. Somehow, we have to keep them here. They are innovators or
originators and therefore in a class of their own.
People with the
capacity to seize the initiative usually see potential that others missed
and they create opportunities for themselves. They certainly do not wait for
others to empower them by passing legislation that allows them to acquire
shares in other people’s companies.
In our efforts to promote the
adoption of good policies, we need to remind ourselves that bad policies are
equally discouraging to local investors as they are to foreign investors.
The fact that Zimbabwe’s administrators permit conduct and behaviours that
are resented by Zimbabweans needs to become an accountability issue on every
agenda.
We should have no illusions about the size of the problem. This
graph shows that for every hundred people in the country in 1991, Zimbabwe
now has about 126, but for every hundred people who had a job in 1991, only
about 67 had a job at the end of 2009.
These alarming statistics
clearly illustrate the increasingly hostile investment climate, which has
caused the shrinkage or closures of businesses, but more to the point, it
shows equally clearly the loss of jobs, the disappearance of job prospects
and the reason why so many have had to leave the country to find
employment.
If we study the performance and reputation of Zimbabwean
workers in foreign labour markets, we can very nearly always feel proud of
their achievements and of the fact that their work ethic, their expertise
and their generous natures have made them eagerly sought-after in many
countries.
I find that very heartening because it proves to me that we as
a people are more than capable of contending with the rough and tumble of
competitive labour markets. Most of us trust the interplay between
competition and market forces to supply us with what we need, and we usually
find that if we do trust market forces, they will deliver the goods. The
market also delivers jobs and job opportunities and it seems we are as
capable as any when we are in competitive market.
Everyone who
understands markets also knows very well that the market place is demanding,
exacting and unforgiving, and that while it can severely penalise anyone who
can’t deliver what the market wants, it can also handsomely reward all those
who get it right. But everything government has done recently shows that
they don’t want to have to pit their wits against market forces and they
also don’t want to suffer any of the penalties that can arise if their
efforts are found wanting.
Government’s approach seems to be that, as
they have the authority to rearrange the economic landscape to suit their
needs, they should use this authority to pass Acts of Parliament that
formalise their rights to claim ownership of any assets they want. They
obviously feel that is much easier than working for what they want, but more
to the point they feel that they are in power to exercise power, not to
share power with markets.
By exercising these powers in the ways they
have chosen, they appear to believe they have built a detour right around
the markets and have won the right to disregard market forces. The Act of
Parliament that declares their right to acquire 51% of every operating
company, whether it exists already or has yet to be started, can be easily
seen to be a means of completely sidelining the market on which the same
shares could be bought.
I feel that it is very important for all of us to
realise the implications this move will have on the economy. Losses of
foreign earnings might seem the obvious place to start, but less obvious
effects will stem from the resentment that will be felt by the current
technical and financial personnel who can so easily find work
elsewhere.
A functioning, profitable company today that employs hundreds
of experienced technicians and earns millions of US dollars could become a
useless warehouse of rusting machinery or a valueless hole in the ground in
a matter of weeks if a few dozen people with specialised skills pack up and
leave.
The damaged relationships with head offices and banks overseas
could cause the immediate cancellation of deliveries of spares, new machines
and external funding for development work. Contracts drawn up between local
and externally-based markets, are likely to be hard to renew when, after
losing reputable technical specialists and professional local managers, the
new boards of directors have to compete against new contenders.
As
the loss of such contracts would impact directly on the number of people who
could hold onto their jobs, employment could become one of the major
casualties of government’s current proposals to acquire controlling
interests in all companies.
Zimbabwe’s formal employment levels have
fallen considerably in recent years, mainly as a result of the displacement
of labour from commercial farming since the acceleration of the land reform
programme after 2002. Job losses were immediately felt in manufacturing,
tourism and the service sector industries, and even mining was affected when
government began to fix the exchange rates and made mineral exports
unviable.
Various estimates of the extent of unemployment have been made,
most of them placing the figure at between 65% and 70%, but the basis for
the estimates are subject to many interpretations of the numbers,
particularly in respect of definitions of under-employment and informal
sector employment.
However, estimates of formal employment numbers
suggest that the 2009 total matched the figure from forty years ago. As
Zimbabwe’s population has more than doubled since 1970, this decline is
twice as bad as it looks in the graph.
Land reform and the loss of
the major businesses built up by about 4 500 large-scale farmers caused not
only the major loss of jobs, but the loss of school places for many hundreds
of thousands of children. Educational standards have been among the many
casualties of policies that did so much damage, not only to production and
employment, but also to government’s tax base.
Now, those with formal
employment and responsibilities to their extended families have to provide
for many more young people than they can manage. Almost all students are
growing up with very poor schooling and very few prospects of qualifying for
formal employment. Hopes that they might shoulder some of the dependency
burden one day are therefore non-existent under present
conditions.
Family members working abroad do carry part of this load, but
the extent and dependability of this support is impossible to assess. Only
by attracting flows of investment capital can the needed local employment be
increased, but the discouragement to new investors that will be caused by
the Indigenisation and Economic Empowerment Act will make an already very
bad employment growth situation considerably worse.
If the
authorities show they have learned nothing from the economy’s experiences
from the damage done to agriculture, and they go ahead with their plans for
the take-over of 51% of all shares in the business sector, the confidence of
potential investors who might have been planning to develop opportunities
will be very severely damaged, if not destroyed. As happened with the
commercial farms, the workers will suffer badly from the destruction of
capacity that will follow and a hidden statistic will be the unknown number
of jobs that never come into existence.
Labour unions need to accept the
fact that potential employees are being automatically and steadily generated
all the time, but there is nothing automatic about the generation of
employers. In Zimbabwe we seem to be working hard to discourage them. We
should be working hard to encourage them, to entice them and to inspire
them. It seems we need to repeatedly explain to government that employers
are investors, or investors are employers. They are the basic pre-requisite
for employment growth. The investors we have are clearly endangered and
should be protected just as we would try to protect all endangered species,
especially if we want them to multiply.
We all want more people to
have a job. None of us here would have any difficulty understanding that if
we want more employees, we should generate more employers. So we should
promote conditions that secure the futures of our existing employers and
help promote the creation of yet more employers. Government has not yet
tumbled to this particular relationship, so we had better start trying much
harder to persuade them.
Bridging
the knowledge gap: Shared African values
http://www.zimonline.co.za/
by Mutumwa Mawere Wednesday 14 April
2010
OPINION: April is special month for Southern
Africans.
South Africa, Africa's economic powerhouse, achieved
independence from Britain on May 31 1910, informed by an idea that in Africa
a little Europe could be founded on the principle that Dutch and English
settlers could appropriate this part of Africa; a unique geology,
topography, and geography; to themselves as dominant drivers of the project
to extend the tentacles of their way of life and worldview to foreign states
through conquest.
It took 84 years of relentless efforts, courage,
sacrifices, pain, deaths, forced migration and unequal development to make
South Africa what it should have been from the very beginning, a democratic
and free country founded on universally accepted values, beliefs and
principles.
So, April 27 represents Freedom Day, being the official
independence day of the country and commemorates the first democratic,
non-racial elections held in 1994.
On April 18 1980, Zimbabwe also
became an independence state.
Everyone thought that henceforth,
Zimbabweans and South Africans were in it together to build a new Africa
challenged by a common future but not intimidated by its past.
The
existence of these two dates in the history of Zimbabwe and South Africa
like many of their sister African countries means that the project to create
a little America, Canada, Australia etc had failed in Africa.
Africa
is now 54 years old and yet the ghost of the past continues to haunt
it.
Unlike America where the natives were overpowered numerically and
ideologically, the African experience necessarily has to be informed by the
majority of the people who have no other home than Africa.
These
people share the same skin pigmentation. The project to create a new America
in Africa failed precisely because its foundation was faulty and
unsustainable.
Within the first 16 years of its existence as a truly
sovereign state, South Africa continues to be tested in a manner that
suggests that we need to pause and reflect on what it really means to be
African.
There are many people who continue to believe that the African
experience cannot and should not be shared.
The architects of
apartheid knew very well that their civilisation would be threatened by
democracy and the introduction of a new social contract founded on generally
and universally accepted values.
The death of Eugene Terre'Blanche (ET),
born April 3 2010, 20 years after the release of Mandela, and its perceived
link to Julius Malema's utterances on the complex issues of race, economic
and political power in post-colonial Africa has helped expose the challenges
that confront not only South Africa but the rest of Africa in creating a
non-racial and progressive society.
Each year as one African state after
another celebrates Freedom Day, the first question to ask when anyone starts
to think about how to tell one's own African story is: "Does it have African
values in it?" What do we define as African values? How inclusive should the
definition be when people who subscribe to the views that were held by ET
reject their inclusion in the new Africa?
It would be naïve to deny
that Africa has been influenced by European civilisation.
Its
institutions and the human capacity that underpins such institutions have
been and continue to be informed by the values, beliefs and principles that
were intended for a colonial state and yet the majority of Africans remain
outside the required social contract.
The African experience for it to
have any meaning must not be exclusive but must capture the entirety of the
history, literature and culture of all its peoples.
It should connect
all these values to show what they mean to Africans. It would be wrong to
assume that all that has happened in the past was necessary including the
commodification of African labour in a manner no different to
slavery.
The ownership question becomes pronounced in no different manner
to the American experience that created a black and Indian class alienated
from the resources that God gave to America.
The need for affirmative
action in America was partly in recognition of the fact that no market
mechanism could undo what human beings with evil intent had put in
place.
Whether Malema's voice is silenced or not, it would be naïve to
ignore the message.
Change must visit Africa and the people who have
more to lose from unmanaged transformation have to step in and explain why
it is in their interest to leave the status quo ante the way it
is.
It is true that ideas like courage or hope are universally prized
concepts. However, what one African considers courageous may not constitute
an act of courage to another.
Equally, the hopes and dreams of the
majority of Africans cannot be realised without the intervention of
non-market forces to reverse the crystallised ownership patterns while
accepting that there is no better mechanism to deliver a secure future to
all Africans than the invisible hand of Comrade Market.
Even the
settlers knew that the African promise had to be underpinned by resources
that God deposited in Africa.
The minerals that transformed the lives of
the Randlords were not imported or manufactured by human beings.
In
the search for a shared African experience, one is compelled to go back into
history not because history will change the present but its lessons can
inform the choices that have to be made.
What then makes an African?
What does an African look like? What values should inform an African
experience?
America, for example, more than most countries defines itself
and the members of its society by reference to a set of shared values while
many Africans define their members on the basis of birthplace and blood
relations.
Even when Malema is talking of nationalisation, it would
not be wrong to conclude that his definition of a South Africa is simply
based on birthplace, language, and blood relations.
So South Africa
should, according to this logic, belong only to people that are authentic so
to say.
Should Africanness be based on a social contract involving an
understanding and acceptance of some sort of democratic values?
To be
a Chinese, for instance, is a fact while to be an American is an ideal.
Should the African experience be informed by facts or ideas?
Should
embracing the ideal like what President Robert Mugabe and Nelson Mandela did
on the birth of their nations, every person that believes in Africa ought to
be considered an equal citizen with the same access to justice and equality
that birth should confer to all Africans born in it.
All Africans
irrespective of their place of birth must stake their claim on the African
promise without prejudice.
The African story is complicated by our ugly
past that assisted the very people who now are the champions for a just and
equal Africa and yet they benefited from the opposite
dispensation.
There are many white Africans who believe that they remain
European in Africa and stand oblivious to the genius of the idea called
America that transformed immigrants into nationals committed to the
promotion and protection of the new social contract.
Africa cannot
advance its interests without the inclusion of all the people who have made
it what it is.
We have no choice but to reaffirm our commitment to our
shared values that can be a powerful and potent weapon to promote inclusion
of all the individuals and communities that make up the African
nation.
The land reform in Zimbabwe has already produced its own set of
challenges and opportunities but it must be agreed that there must be a
better way to address economic challenges.
It is often easy to blame
state actors for any failure but it must be said that those who value good
life in Africa must show cause why the status quo ante founded on injustice
and inequity must prevail.
Those who have more to lose must be the
drivers of change otherwise if change is driven by the majority who have
nothing to lose then only God can help reverse the inevitable.
South
Africa is pregnant with lessons for all. Let us learn from the experience of
the country so that we can anticipate the good and the bad that can become
reality if we choose to do something about our shared future and the
obligations underpinning our common African heritage.
Zimbabwe being the
last country on the alphabet offers its own lessons on the African story and
there can be no wrong time to reflect on what Africa needs to exploit for
the benefit of the living its resources to the mutual advantage of all that
God intended when he rewarded black people with resources and challenged
them with limited access to the means to convert such resources into liquid
cash. Even if all the white people of Africa were to leave, Africa's rich
resources will remain where God deposited them unless we invest in a new
business model and a shared experience based on mutual respect. - ZimOnline
Confidential Report by the special investigations Committee IMPLICATING CHOMBO and PHILIP CHIYANGWA (Urban Land Grabbing)
http://www.zimbabwemetro.com/wp-content/uploads/2010/04/special-report-hararelandissue.pdf
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