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The fallacy of production in Zimbabwe!!

10 Jan 2019 at 12:45hrs | Views
There is this fallacy in Zimbabwe and among Zimbabweans that production is a pre-conditionality for economic revival. This view  unfortunately misses the point altogether. Zimbabweans do not seem to understand that production is a function of a stable and credible currency. So long as there is no stable and credible currency that is trusted by the market (consumers, buyers and sellers), there just won't be any production. It needs to be repeated for the umpteenth time that production is a function of a steady, stable and credible currency. In other words you need to have a stable currency like the US$  or Rand in place before you dream about productivity. Currently the situation is not working and there is zero productivity simply because of the presence of an illusory and fictitious currency called the Bond note.

The US$ is a strong, stable and credible currency and therefore it is the very currency that the Zim economy needs in order to resurrect  from its self-inflicted suicide.

 For example, teachers and doctors won't be productive (produce quality students and cured patients, respectively) so long as they are not paid in a stable, credible and trusted currency called the US$. The same applies to Delta. It won't produce quality products so long as it's products are not bought by consumers in US$s.

Ndlovu, an award winning economist, can be contacted on collsndlovu@gmail.com.

Source - Colls Ndlovu
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