Opinion / Columnist
Mugabe can't solve Zimbabwe's problems
14 Sep 2015 at 20:44hrs | Views
President Robert Mugabe's appointment of new 14 ministers to his bloated Cabinet at a time the country is reeling from acute liquidity challenges - spawned by lack of productivity and huge trade deficit - is the final nail in the coffin for the moribund economy.
Mugabe, battling internecine fights in his divided Zanu-PF party and poor health associated with advanced age, went against expectations when he added new members to his already bloated but useless cockpit crew.
What is surprising and disconcerting was that the appointments were made at a time companies and some parastatals - suffering from his failed policies - were laying off workers.
Tellingly, this came as his government had announced measures to try and reduce its wage bill, blamed for consuming 80 percent of the budget, by half, to about 40 percent.
The appointments came a day after the International Monetary Fund (IMF) slashed Zimbabwe's economic growth forecast from 2,8 percent to 1,5 percent this year due to drought and weakening global metal prices. Jarringly, Mugabe's decision flies in the face of considerable progress made in implementing the country's Staff-Monitored Programme (SMP) whose review was one of the reasons why the IMF team was in the country for nearly two weeks.
Among the key issues that the SMP seeks to address is government's wasteful use of its finances.
It therefore, leaves Mugabe and his advisors at odds with what is prevailing in the country.
We would have expected Mugabe to back what Finance minister Patrick Chinamasa has been doing in trying to manage the scarce resources.
Instead, the president has demonstrated that patronage takes precedence over business and economic sense.
Mugabe has displayed an indignant attitude which makes even some of his staunchest backers to believe that indeed he no longer has the capacity to lead us into reclaiming our mojo.
His actions militate against everyone else's efforts to try and turn around the economy. The money that Treasury will spend buying top-of-the-range cars and furniture for the new ministers would have been spent reforming the outdated and rigid investment architecture to lure investors.
Investing in a new architecture will certainly go a long way in improving the ease of doing business.
For a country that desperately needs investment, it is important that government removes all impediments which are scuttling Foreign Direct Investment (FDI).
Additions to Cabinet expose Mugabe as yesterday's man who can't solve today's problems!
Mugabe, battling internecine fights in his divided Zanu-PF party and poor health associated with advanced age, went against expectations when he added new members to his already bloated but useless cockpit crew.
What is surprising and disconcerting was that the appointments were made at a time companies and some parastatals - suffering from his failed policies - were laying off workers.
Tellingly, this came as his government had announced measures to try and reduce its wage bill, blamed for consuming 80 percent of the budget, by half, to about 40 percent.
The appointments came a day after the International Monetary Fund (IMF) slashed Zimbabwe's economic growth forecast from 2,8 percent to 1,5 percent this year due to drought and weakening global metal prices. Jarringly, Mugabe's decision flies in the face of considerable progress made in implementing the country's Staff-Monitored Programme (SMP) whose review was one of the reasons why the IMF team was in the country for nearly two weeks.
Among the key issues that the SMP seeks to address is government's wasteful use of its finances.
It therefore, leaves Mugabe and his advisors at odds with what is prevailing in the country.
We would have expected Mugabe to back what Finance minister Patrick Chinamasa has been doing in trying to manage the scarce resources.
Instead, the president has demonstrated that patronage takes precedence over business and economic sense.
Mugabe has displayed an indignant attitude which makes even some of his staunchest backers to believe that indeed he no longer has the capacity to lead us into reclaiming our mojo.
His actions militate against everyone else's efforts to try and turn around the economy. The money that Treasury will spend buying top-of-the-range cars and furniture for the new ministers would have been spent reforming the outdated and rigid investment architecture to lure investors.
Investing in a new architecture will certainly go a long way in improving the ease of doing business.
For a country that desperately needs investment, it is important that government removes all impediments which are scuttling Foreign Direct Investment (FDI).
Additions to Cabinet expose Mugabe as yesterday's man who can't solve today's problems!
Source - dailynews
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