Do not do as the English tell you to do, do as the English do

Figures from industry indicate that since the migration to a multiple currency regime in early 2009, Zimbabweans have spent more than US$50 billion importing things like toothpicks, onions, tomatoes and apples.

In the first three months of 2016, Zimbabweans have already spent US$1 million on imports of apples. Another US$3 million has gone to skin care products, US$690 000 has been splashed on mineral water imports, US$317 000 on importing chewing gum in just three months.

In 2015, this country imported cars — many of them pre-owned units — from the Far East and Europe worth more than US$500 million.

Also in 2015, the Reserve Bank of Zimbabwe has said, individuals externalised US$684 million as donations, investments and bank account transfers. Companies had externalised US$1,2 billion in 2015 as export sales proceeds and highly inflated management, technical and performance fees.

This is money bleeding from Zimbabwe, leaving the economy anaemic and people's livelihoods on the brink. In all, Zimbabwean exported goods and services worth just US$3,4 billion compared to total imports of US$6,3 billion. That was a trade deficit of US$2,9 billion.

For 2016, the projection is that exports will rise to US$3,7 billion while imports will fall to US$6,2 billion.

That improved trade deficit is a step in the right direction, but it is far from enough.

The Government is tightening import restrictions as a deliberate move to both retain liquidity and direct greater support towards local manufacturing.

No country in the history of the world has ever developed its manufacturing sector without some measure of import controls. We should urgently follow the advice provided in Erik Reinert's 2004 book titled "How Rich Countries Got Rich … And Why poor countries Stay Poor".

Reinert set about documenting the history of economic thought over the last 500 years and his conclusion was the rich nations are as they are today because they favoured imports of raw materials and exports of finished goods.

For the United Kingdom to emerge as a European power, it simply copied the economic models of the then powerful Dutch Republic and city state of Venice.

In the 1300s, these two were far and away the economic success stories of Europe. Venice and the Dutch Republic focused on maritime trade, ship-building, naval instruments, military equipment and wool clothing. Their most important source of raw material for textiles was England, and the English were for centuries content to export raw wool to Venice and the Dutch Republic, and import clothes.

In 1728, in the book titled "A Plan of English Commerce", Daniel Defoe noted that England's fortunes started changing from 1485 when King Henry Vll made raw material exports to Venice and the Dutch Republic expensive.

England also made it extremely costly to buy textiles from these European powers and instead invested in its own manufacturing capacity.

And when this model worked for them and many other now developed countries, these same nations started preaching free trade, well aware that fledgling manufacturing industries would be overwhelmed by uninhibited competition. It was aggressive protectionism that made Europe what it is today.

The first United States secretary of the treasury, Alexander Hamilton. He advised: "Do not do as the English tell you to do, do as the English do."