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A command economy will not work - PDP

by Jacob Mafume
14 Mar 2017 at 12:00hrs | Views
The People's Democratic Party is irked by the threats to introduce command economics by ZANUPF, we view the move as ill informed, ignorant and bound to fail.

Mnangangwa recently told a gathering that the government is now working on a plan to introduce command strategy on everything including education and health.

He used an unproven argument that command works because of the projected bumper harvest deliberately misinforming the nation that the harvest is a result of the command scheme.

Farmers who are not directly linked to ZANUPF did not access the inputs, the percentage of the beneficiaries is therefore too insignificant to attribute a successful agriculture season to the program.

As we mentioned before the loan used to fund the purchase of inputs in the scheme has inflated interest rates more importantly ZANUPF have always failed to put in place a mechanism to recover loans extended to their cronies. With that in mind it is inevitable for ZANUPF to force the people of Zimbabwe to repay the debt the same way they did with the RBZ debt.

Using such a model in the broader economy will only serve to create more debts for the people of Zimbabwe while ZANUPF linked individuals continue to enjoy the fruits the dirty loans.

Instead ZANUPF must fix the basics as we mentioned in our State of the economy address Zimbabwe needs to do the following:
Attend to macroeconomic stability, in this regard we contend that fiscal discipline must be maintained and that the government must immediately resort to the principle of cash budgeting.

Financial Sector Stability and Liquidity by scraping the bond note, paying back the stolen RTGS balances, promotion of plastic money and in the long term facilitating a regional monetary union.

Industrialization through a shift from an extraction model to beneficiation, repealing the indigenisation law and investing in infrastructure which makes it easy to do business.

Rationalization of the 2017 Budget, reduce the Budget to an achievable target of USD3 Billion which can fully be covered by domestic revenues and also develop external partnerships that can take care of social sector obligation in areas like BEAM, flood victims support and drug procurement.

Retrenchment of Expenditure, rationalizing the wage bill by dealing with the issue of ghost works
State Owned Enterprises at least 30% of GDP is being drained through state owned enterprises that have become a vehicle of patronage. The state enterprises are increasing domestic debt making reform of the institutions urgent.

Restoration Of Land Value ,the revival of the agricultural sector is predicated upon the restoration of the land value through the issuance of land title i.e. title deeds to all the beneficiaries of the land reform program.

Mining, Zimbabwe is endowed with world class reserves of commodities which however are regulated by imperial regulation that promotes primitive accumulation and self-aggrandizement. There is need to create a framework for value addition, transparent allocation of mining rights and spatial linkages in the sector.

International Re-Engagement, end isolation of the nation, deal with the debt question and negotiate a martial plan aimed at reconstruction.

With a functional economy education and health will then need government intervention in creating a welfare state with social safety nets uplifting the disadvantaged due to the lottery of nature assisting them to even up and be able to live personal determined lives.

As matter of fact Mnangagwa must attempt to command the reduction of roadblocks, an end to corruption and the insatiable appetite to fly in and out by the executive.

Together Another Zimbabwe is possible.

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Source - Jacob Mafume, PDP Spokesperson