Friday 7 March 2014

VULTUROUS AND VEMPAROUS ECONOMY, CAN ZIMBABWE BE A PREDATORY STATE?


The victory that brought Zimbabwe to a new dispensation of independence was pinnacled with hope of a better and a sustainable economy. The emergency from an environment epitomized by suppression in form of colonialism gave Zimbabwe a clean slate to do better in national development.

Misheck Gondo

 It is however important to hail the immediate post independence era in which policy formulation was directed towards critical economic issues such education for all, eradication of poverty, employment, consolidation of good foreign policy and regional integration. 

The post independence era ushered with it names such as the Bread Basket of Africa among other ululations directed towards the economic strides that emanated from a promising economy. 

It is now fair to ask what went wrong in the process of building our mother land. The hope of a better Zimbabwe started to disappear as political tensions appeared. Economic discord became the order of the day, foreign relations in doldrums; pre-colonial era repeated itself in a new fashioned style led by the sons of the soil.

The year 2000 de-intensified the dream of a new era, the gap between ruling classes and the proletariat became wider, with the former getting richer and the later getting impoverished. The relationship was that of carnivores which service on eating the other.
Economists had vast complications to classify which class of economy Zimbabwe was riding on. The characteristic of our economy since the emergency of post independence political troubles did not qualify to be part of the three basic types of economy. The state of affair had turned to be that of a primitive state whose rulers extort taxes for their personal benefits.
A predatory state can be explained as a state that punishes its citizens for the benefit of the ruling class, the punishment came in form of burdened tax levels, exorbitant rates of public services such as education, transport and accommodation among others. This predatory state can result in lower levels of both output and popular welfare.

The predatory state may provide public goods to its citizens and hence may superficially resemble a contractual state.  As noted by Political       Economists, the ability to provide such goods can actually reduce popular welfare after allowing for tax changes. Moreover, the kinds of public goods that predatory states provide are those that increase revenue, not necessarily welfare.

The state of affair will be anarchic which resembles statelessness; the attention is focused on political survival at the expense of citizen survival. Policies and laws that emanate from a predatory state seek to format the majority into believing that their government is people centered and pro-poor.

Zimbabwe since 1980 has managed to craft appraisable blue prints to cover the five year tenure of political office. As noted in one of Takura Zhangazha‘s 2013 article, “It also has the propagandist hue of past governments’ five- year economic blueprints of the 1980s and 1990s.”The blue prints failed to bring much needed political change that upgrade the lives of the poor majority, even before the much touted sanctions hymns.

The last decade also saw Zimbabwe reaching stratospheric levels of inflation, window measures were introduced such as printing of money among other unsustainable ways. The government seemed to have mooted a holistic plan to siphon little moneys from poor citizens, with high rate of bills that are paid by rate payers that does not complement the services offered in return.

Residents receive water bills that are exaggerated, yet the water is erratic in supply and contagious in consumption. In opposite, the salary bills for the city bosses will not be tallying with reality.

Coming to our roads, the lives of people are at risk, with high probability of accidents, yet attention by city fathers is directed to innocent vendors who are seeking to sustain their families and to pay the mentioned high bills. The government must put the concerns of its citizens first, making sure that their rights are guaranteed above average point.

The Zimbabwe health system is crumbling at a faster pace, on the other hand, the fees are now beyond the reach of many, and recently Minister David Parirenyatwa appended his signature to new medical tariffs that are yet to be gazetted. 

It is a pave strategy by the government to sustain itself from collection of not only exorbitant changes but also unjustified fees. The ordinary consultation is estimated to be around 75% higher as approved which will translate to the rise from US$20 to around U$35. Given the fact that Zimbabwean tariffs are already high in comparative analysis within the Southern Africa region, it is very unreasonable to raise them further as the government is putting an unnecessary burden of their failure to innocent masses.

The education sector is also another preserve for the elite. Parents are struggling to pay for their children from primary to tertiary institutions. In a predatory state, the government makes favorable laws that can not be implemented practically; our National Constitution Section 27 noted the obligation by the government to make primary education free to children and secondary and tertiary education accessible to all with the girl child in mind. On that note, its accessibility is questionable when tertiary institutions are hiking tuition, the case of University of Zimbabwe (UZ) which has increased its tuition by 10 % for students that come from families that are surviving on US$1 a day. 

Transporters and car owners are not spared in the present collection of revenue, as evidenced by police presence at every junction and few kilometers apart in the highway roads. ZIMRA at the other corner is also making sure they collect every cent from tax payers towards the payment of hefty salaries, in which the boss takes home US$3,720 000.00 million annually.

Zimbabwe is an agro-based economy in which agriculture should be developed and benefit the nation, ironically the sector is not receiving practical policy attention. The erratiness of inputs toward farming season, the exorbitance of the former and the market price at the end of the day leaves farmers in utter surprise and disgruntlement.

 It has been reported recently that some Tobacco auction floors in Karoi started to purchase Tobacco with as little as 20c per KG; one wonders where is the government to protect the vulnerable farmer from economic vultures.
Other schools of thought are arguing that the government is benefiting in such a scenario, enabling the buyers of Tobacco to buy at lower price; pay the balance to the government, to liquidate its operations such as to pay civil servants salaries among others.

The Zimbabwe Indigenization Policy was at the center of government to acquire sustainable growth. The policy has been criticized for lack of clarity and its vampire guerilla nature that scare away foreign direct investment (FDI). The policy compels foreign owned firms with a minimum capital of $ 500,000 to cede 51 percent of the shares to locals. Truly speaking, if this behavior is not corrected, Zimbabwe will continue to sink into oblivion. Globalization requires a conducive environment where everybody is treated equally in congruency with consistency, clarity, transparency in the application of law.

Instead of taking over what belongs to others, those who do not have, I mean the locals, must be empowered to start their own businesses with an environment that encourage partnership and growth. Some Political elitist hide behind indigenization in order to loot and enrich themselves, time will tell.

In the vicinity of last year elections, ZANU PF elaborately in its manifesto promised to create about three million jobs. It is now that the revolutionary party is admitting that they will not be able to do that, what an insult to the electorate and majority unemployed youth. 

The high unemployment rate estimated to be above 80 percent, has left the economically bruised citizens hopeless, especially with the contemporary discourse of parastatal salaries, corruption, politicking and closed political space that does not allow developmental economic dialogue.

With the Zimbabwe Opposition Parties that seem to have no direction at all, the increased complications are knocking at the doors of the very poor.

However, the answer of whether our beloved state has turned into a vultures’ or vampires’ economy which carries the characteristics of a Predatory state lies with the people. It is multiple choice question that; can Zimbabwe be classified to an economy that utilizes any available chance to extort the single pen from its poor citizens through exorbitant revenue in order to lubricate unsanctioned government bills.
Zimbabwe needs to have self-introspection, take commitment to make things right, above political rhetoric and elucidations. Making our foreign relations right, promoting dialogue and national consensus among Zimbabweans for the sack of economic revival.

The government should reflect and admit on its failures, take corrective actions, the current salary gate has raised eye brows, how can the whole government system with sophisticated intelligence failed to dictate the rewards ushered to parastatal bosses in the past decade.

In common sense, the currently failure by the government to pay civil servants salaries  beyond poverty datum line and offer new jobs  could be the thing of the past through shifting to productive policies and creation of  an environment of good governance, tolerance, rule of law among other sustainable policies that enable fiscal inflows and creation of employment.

  It is also sad to note that the money paid to few elites in parastatal could be spread to benefit the citizens at the same time workers receiving their adequate basic salaries in those institutions.

Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIMASSET) can only succeed with good corporate governance, dedicated team that seeks to transform the country without political protection to those who economically sabotage the economy.

Let’s wait and see

Misheck Gondo is an International Relations expert with the University of Zimbabwe (UZ)


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