via Zanu PF is it’s own worst enemy – DailyNews Live 13 MAY 2014
From the beginning, it was clear steering the economy was going to be a tall order for Zanu PF.
And hitting the ground running was essential if the ruling party was to get the buy-in from the population.
It took Finance minister Patrick Chinamasa months to put his budget together — the reason, there was no money in the kitty.
When he finally presented the budget, he admitted he had done to fulfil a statutory requirement, that a budget had to be in place.
Analysing the spending plan, it was clear key areas that needed to ride herd on the economy — mining and industry — did not get the funds needed to revive and propel them to commanding positions.
So too were social services grossly underfunded — they continue to deteriorate. The Zimbabwean economy, which bottomed out during 2008 was only revived after adopting the multi-currency system.
Despite election promises to grow the economy by 6,6 percent and create 2,2 million jobs, poor indigenisation policies which require investors to cede 51 percent shareholding to locals, have scared away investors.
Meanwhile, the local industry is unable to compete with imported products, and has continued to shut down and shed workers.
The ruling party’s ZimAsset, a policy blueprint which is supposed to drive the revival of the economy has been described as a “pie in the sky” and requires a massive $27 billion to be operationalised.
The economy is now in deflation — a signal the economy is shutting down.
Government has sought to borrow $4 billion to fund its recurrent budget, an idea which even their erstwhile friends the Chinese have rejected on grounds it does not fund national budgets.
ZimAsset also says the country will borrow money from the Brics countries — Brazil, Russia, India, China and South Africa, all of which have their own problems. Brazil is currently struggling to finish stadia to host the World Cup next month.
Russia has burnt its fingers in Ukraine and faces American and European sanctions. India has never been close to Zimbabwe. China has made clear its stance and South Africa stopped short of giving the country money during the Government of National Unity era.
The Bretton Woods institutions have ruled out any new funding unless a number of conditions are met, including reducing the civil service wage bill, strengthening the banking sector and paying back the $6 billion debt.
The Zanu PF government has of late been talking about mortgaging the country’s mineral resources to get funding. This is a desperate move that would sell the “family jewels.”
Our children and great, great grandchildren will want to run this country in their own way.
Should we limit their options because this generation tied them to a certain way of thinking?
We don’t think so.
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