Property rights key to investment: an open discussion

There are certain truths in our daily lives that are so obvious and clearly stationed by the roadside. Unfortunately because of their very obviousness most people tent to ignore or sometimes forget their existence. One of the most forgotten aspects of life in the civilized Zimbabwe is that, any organization in this world's success or relevance can only be justified by its ability to achieve what it was formed or elected to achieve. The same applies to political parties and governments. What has happened in our fatherland, Zimbabwe is a complete counter attack of this very fact. This country is no longer in perilous state nor in intensive care unit, it has fallen and lies breathless; this is a hard cold fact which doesn't give us choices but must be unconditionally accepted. The current state of affairs in this country, with the tottering economy and incorrigibly rotten service delivery institutions shows things are gloomy, depressing and bleak. Any person who lies in trepidation from the horrors posed by our economy can now see that the geriatrics in offices are clueless and therefore are now irrelevant and their existence there can no longer be justified, because they have incredibly failed.

One must wonder why a country with vast good farm land, vast in natural resources, and plenty of human resources can reach at such a lifeless state. A booming country, whose agriculture was enough to feed the people and export the rest, it also supplied 60% of inputs to the manufacturing industry. So agriculture was undoubtedly the backbone of the national economy. Apart from agriculture Zimbabwe was a manufacturing country as well, a wide range of products were manufactured domestically and others exported too. A resounding tourism and banking sector with potential to grow aided its economy. All these industries were booming and employed citizens. Zimbabwe the ones breadbasket turn a basket case in itself, every graduation ceremony of tens of thousands of students is a parade of armies of unemployed and helpless youths, cash crisis is leaving companies without choices but to close, expel other workers or downsize. This has left many into street vendors and other relative informal businesses. Everyone goes to work without the prospects of being paid, sometimes on time or in worst cases if she or he will retain to his job the following month. The situation is horrible to behold, Zimbabwe is no more, inward people are bleeding from a thousand wounds, but still they must live and prosper. Zimbabweans work harder everyday using every means at their command or they must die of manufactured hunger and man made poverty.

One cannot answer the question "how long will this go on?" before extricate the causes of the scourge. The main cause that lies at the heart of the misfortune of our country is our temper on property rights. Property rights are important in all growing economies for they guarantee bank loans for the existence of the bank and that of the investor. Financial investors fled the country ostensibly because of the seizure of farms that left no compensation, due to fear to lose their businesses as well. Consequently by 2001, foreign direct investment nose dive to zero. The banking sector can no longer extent loans to farmers and that is the reason why there is far less collateral for farmers to access loans. Hence apart from draughts, the agricultural sector is domiciled in under funding therefore under utilization and under development. It is so obvious that no one will develop any land which he is not titled to, which he has a risk of losing in any political squabble, no and again no. unfortunately some banks were brought to ruin and the existed refrained from extending loans to the farmer. A blow to the backbone of the economy was injurious to other sectors as well and 700 companies closed down in 2001. The company closure has socio economic results as well, job loses on the part of the worker low revenue base and decline in industrial production. In a short space of time the generality of peoples had to suffer untold famine, joblessness and abject poverty yet this was the beginning. The controversial indigenization law was the complete overthrow of the property rights in Zimbabwe. It doesn't allow complete ownership of businesses on the pretext of empowering the majority of Zimbabweans. Anyone with rudimentary knowledge of economics will see clearly how this policy scares away investors and how it continues to be a debacle to the toiling Zimbo who dreams for an industrialized country. Barely a couple of months ago the country's president had to reiterate the indigenization law to his own cabinet again. This doesn't give a good picture to the investor at all. It's a shame, a humiliation that has to be stopped. It's a sign that the ingenious law is not clear in its expatiation and this country is derided in its trappings. Only what it has brought to the fatherland must serve as its justification, it made our country appear as a country of parasites, greedy political profiteers, looters and thieves. Investors fled, companies closed up, corruption shot up and unemployment triumphed. The indigenous laws that are a result of barren, outdated and pathological hyper-patriotism have left Zimbabwe in a bare and naked miserable imposture.

The lesson that Zimbabwe is to draw for the death of its socio economic life is that property rights are sacred and they serve as fertilizer and linchpin in growing economies. Any voice of contentment must see how Zimbabwe had extraordinarily collapsed ones these rights were tempered with. Protection and security of property rights is the only way for the resurrection of the fatherland. Right now Zimbabwe lies dead, its tombstone bears the inscription: Here lies a beautiful country, murdered by greedy, corruption, confusion and falsehoods.

Believe Chikomo is a political writer who developed interest in History and matters of governance.