Opinion / Columnist
It ain't the 'sanctions' dammit
07 Aug 2014 at 16:20hrs | Views
Those who are familiar with Zimbabwe history and Zanu-PF rule for the 34 years can agree with me the so called sanctions have little effects than what Zanu-PF has done to squander the economy as it is now.
In these passages I am going to trace why the economy of Zimbabwe implored regardless of what the Zanu-PF inner circle purport that it was by sanctions.
The problems that we have in Zimbabwe right now stretches back in the 1990s. And corruption and poor decision making and poor policy formulation and implimentation plays a major role in the economy deterioration.
One for the first destructive policies was Economic Structural Adjustment Programme (ESAP) nicknamed "Extreme Suffering for African People " this aimed at 25% cut in civil services, removal or reduction of labour restrictions , price controls etc. Financial indiscipline and unbridled political interference in economic and fanancial matter of Mugabe collided with the drought which resulted in imports of food at high costs and government indiscipline derailed the programme. Average economic growth fell from 4% to 0.9% in 1991 and unemployment was 45% in 1993. Clearly this is way before we had sanctions in Zimbabwe.
A series of scandals such as GMB and Air Zimbabwe where Zanu-PF officials diverted funds to their pockets were recorded.
The crucial year that lead to the situation we are right now was 1997, we all remember that war veterans were paid Z $50 000 (about US $2500) plus a pension of Z $2000. This was a way of buying off angry war veterans, but however this expenditure was unbudgeted. It was the start of inflation and a resort of printing press which lead to the destruction of the Zimbabwean currency and individual saving on the following decade.
In 1998 yet again unbudgeted Zanu-PF send between 11000 and 20000 troops to DRC. At that time treasury in Harare was finding difficulty in paying public servants this was a mistake. In September 1999 IMF confirmed that it costed US $ 166 million in 6 months. Certainly like the war vets payment the Congo expedition had not been budgeted for in advance, and it was the reason why in the late 1990s multilateral agencies lost faith in the economic policies of Zanu-PF government.
In as much as the land issue needed to be addressed the way it was done was a big strike to the economy of Zimbabwe. This was done with strong human rights violations which saw only the Zanu-PF cronies getting the farms and Whites farmers being chased of their farms. Crops were burned and animals were often slaughtered to feed the Green Bombers who were campaigning for Mugabe in the 2000 and 2002 election. Food production was cut. And GDP was at -8.2% by 2004.
As we have seen situation was worsened by unbudgeted war vets compensation in 1997 and 1998 military involvement in Congo that drained hundreds of millions on the economy. Inflation was 32% in 1998 and it touched 622% in 2003. Commercial farming was not only damaged but wiped out as the traditional sources of exports and foreign exchange and as a provider of more than 400 000 Jobs.
Is it the Sanctions, the targeted restrictive measured that was put on 110 individuals that causes all this? I do not think so.
Follow me on twitter @KuleVeZaka
Part 2 Coming
Source - Mapindani Tapiwanashe
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