Opinion / Columnist
If Zim economy 'growing' under sanctions, why was it not growing in the past 20 years?
01 Jul 2023 at 19:52hrs | Views
So, the ruling ZANU PF regime wants to be given another term in power on the basis that it has managed to grow the economy, in spite of sanctions supposedly imposed on the country?
That is perfectly logical and understandable, right?
If the party has, indeed, managed to overcome these 'sanctions', thereby developing the nation, why should they not ride on that 'success'?
Which sane political party would not do the same?
However, there is a huge unmistakable and glaring problem with that narrative!
It can not be denied that the Zimbabwe economy has been growing, in GDP (Gross Domestic Product) terms, over the past few years.
In fact, currently our GDP stands at US$29 billion - a marginal jump from the US$28,39 billion from 2021 and US$21,51 billion in 2020.
Quite good, isn't it!
However, I have a question.
If these so-called 'sanctions' are responsible for the unimaginable poverty and suffering we have been enduring over for the past two decades - what has changed now?
Why is the economy only growing now?
Have these 'sanctions' been removed?
Why could the ZANU PF government not do over the past twenty years, what they are doing today?
When we listen to President Emmerson Dambudzo Mnangagwa brag over his administration's claimed 'achievements and successes', he always makes sure to emphasize that the country was now relying on its own resources to grow the economy.
Is that right, Mr. President?
May I ask you this, where were these 'resources' in the past twenty three years?
Is the ZANU PF regime surely telling the nation that they only realized or discovered that we were endowed with vast deposits of gold, diamonds, chrome, platinum, and over 40 others, two or three years ago?
Was this country - from as far back as the 11th century medieval kingdoms, beginning with Great Zimbabwe, Mutapa and Rozvi empires - not founded on these natural resources as gold?
Was the very essence of colonialism in the 19th century not motivated by the desire not only to access, but also to control, our gold (and other minerals)?
Are 'our own resources' not what made colonial Rhodesia a force to reckon with - not only on the continent, but globally - even in the midst of a real UN imposed economic and trade embargo?
So, why on mother earth, does the ZANU PF regime want us to believe that they suddenly awoke to this fact only in 2019?
Let us not forget that these alleged 'sanctions against Zimbabwe' were imposed in 2001 - as travel and financial restrictions on a handful of individuals and entity.
These individuals and entities were never of any real significance to the country's economy.
According to RBZ (Reserve Bank of Zimbabwe) governor John Panonetsa Mangudya, the country's minerals and trade are not under any restrictions or sanctions.
Which is why, in spite of these restrictive measures still largely in place today - most particularly, ZIDERA (Zimbabwe Democracy and Economic Recovery Act) imposed by the USA in 2001 - Mnangagwa is boasting of growing the economy 'using our own resources'.
This shows that these 'sanctions' could have never prevented the nation from prospering ever since their imposition 23 years ago.
We could have easily developed our nation by 'using our own resources'.
So, why were we not doing exactly that?
Why did our economy go into a freefall - characterized by record-breaking hyperinflation reaching staggering figures as 79,600,000,000 percent in 2008 - plunging millions of Zimbabweans into unprecedented destitution?
Where had 'our own resources' gone?
In fact, why did our mineral production reach as low as US$2.7 billion in 2017 - yet today, standing at US$12 billion?
The answer can be found in our diamond production.
It is reported that the country lost over US$15 billion in diamond revenue to corruption and smuggling over the course of 15 years.
Even today, as Mnangagwa brags of 'economic growth', Zimbabwe is still being prejudiced over US$2 billion each year through the smuggling of our minerals.
On top of that, annually we are losing US$3 billion to illicit cross-border financial transactions, and nearly half for our GDP to other corrupt economic activities.
This is the real reason, for the past two decades, our country has been reeling under a seemingly unending economic crisis.
Today, despite all the talk of 'economic growth', nearly half the population is living in extreme poverty, with three quarters earning below the poverty datum line.
Even those undertaking so-called 'empowerment projects' can not afford to purchase or build decent homes for themselves.
No wonder most of our people in Zimbabwe have become dependent on the ruling establishment for handouts, donations and even residential stands - practically rendering them captives to ZANU PF and the state.
Who can dare criticize or question his own benefactor - who is practically his life support system - for fear of losing that farm, or protect, or agricultural inputs?
Does this not show that even those 'benefiting' from government and ruling party 'empowerment projects' are not really empowered - but merely surviving at the mercy of the ruling elite, who can pull the plug at any time?
Our health care institutions are now death traps - as they lack functional ambulances, cancer machines, maternity wards, with such basics as paracetamol, antibiotics and other medications perennially in short supply.
In fact, the government recently purchased 32 helicopters from China - at a grossly overpriced US$320 million (meaning each chopper cost an unbelievable US$10 million) - ostensibly to be used as ambulances!
We all know that helicopters of the type procured by the Mnangagwa regime cost around US$3 million - so what happened to the other US$7 million per chopper?
Yet, unsurprisingly, these helicopters have been spotted ferrying top ZANU PF and government officials to campaign rallies - as the country heads towards the 23rd August harmonized elections.
In the process, our hospitals and clinics remain without the desperately needed vehicles - with most grounded due to a lack of maintenance.
The same deplorable situation is witnessed in our educational institutions - whereby pupils, mostly in rural areas, still conduct their studies in the open, without any learning material as books, chairs and desks.
This brings me to my final point.
Zimbabweans needs to remember that economic growth does not necessarily translate into economic development.
Admittedly, we may have impressive figures of economic growth - but these are worthless when the livelihoods of ordinary citizens remain in poverty.
What is the point in talking about a US$29 billion GDP or US$12 billion mining industry - when Zimbabweans are still languishing in poverty?
That is why the whole talk of an 'upper middle-income economy' will never result in improved living standards for the ordinary citizenry.
Just as with GDP and economic growth - the concept of an 'upper middle-income economy' is a matter of figures contained in books at the ministry of finance - which may mean absolutely nothing to the man, woman and child on the street.
According to the World Bank's Atlas method, for a country to be classified as an 'upper middle-income economy' its GNI (Gross National Income) should be between USS$4,046 and US$12,535 per capita.
Zimbabwe's GNI per capita currently sits at US$1,530 — making it a 'lower middle-income economy'.
However, here is where things get interesting!
Mnangagwa wants the nation to believe that they are suffering because the country is still a 'lower middle-income economy' - and things will significantly improve once we attain 'upper middle-income economy' status, a good seven years from now (in 2030)!
Nothing can be farther from the truth!
How many people know that countries as Rwanda, Madagascar, Tanzania, Senegal and Uganda are 'lower middle-income economies' - yet, their citizens enjoy a higher standard of living than in Zimbabwe (which falls under the same economic classification)?
In other words, even if we are still a 'lower middle-income economy' there is really no need for us to be suffering like this.
Our economic figures already show that we should be enjoying quite decent respectable livelihoods.
Nevertheless, this income that the country is earning (GNI) is benefiting only a few - whilst the majority remains in poverty.
As such, even if these GNI numbers increase to 'upper middle-income economy' levels - there will be nothing for the ordinary citizenry to celebrate - as only the ruling elite and those aligned to them will be singing all the way to the bank.
That is why there will always be money for a US$54 million presidential jet - but absolutely nothing for radiotherapy machines (each only costing US$2 million), or a maternity ward for US$37,000.
Mnangagwa and his cronies are the real 'vene' - not those impoverished people we watch chanting ZANU PF slogans, or manipulated to beat up opposition supporters!
In conclusion, it is clear that supposed 'sanctions' are not why we are enduring such untold misery in Zimbabwe.
It has already been proven, over the past few years, that if the government seriously wanted to 'use our own resources', the economy can easily grow - with or without these 'sanctions'.
However, rampant corruption, mismanagement and looting have been the main reason these resources have never benefited the ordinary people on the ground.
There was really no reason for the poverty we have witnessed over the past two decades, had our abundant resources been used faithfully for the good of the nation.
● Tendai Ruben Mbofana is a social justice advocate and writer. Please feel free to WhatsApp or Call: +263715667700 | +263782283975, or email: mbofana.tendairuben73@gmail.com, or visit website: http://mbofanatendairuben.news.blog/
That is perfectly logical and understandable, right?
If the party has, indeed, managed to overcome these 'sanctions', thereby developing the nation, why should they not ride on that 'success'?
Which sane political party would not do the same?
However, there is a huge unmistakable and glaring problem with that narrative!
It can not be denied that the Zimbabwe economy has been growing, in GDP (Gross Domestic Product) terms, over the past few years.
In fact, currently our GDP stands at US$29 billion - a marginal jump from the US$28,39 billion from 2021 and US$21,51 billion in 2020.
Quite good, isn't it!
However, I have a question.
If these so-called 'sanctions' are responsible for the unimaginable poverty and suffering we have been enduring over for the past two decades - what has changed now?
Why is the economy only growing now?
Have these 'sanctions' been removed?
Why could the ZANU PF government not do over the past twenty years, what they are doing today?
When we listen to President Emmerson Dambudzo Mnangagwa brag over his administration's claimed 'achievements and successes', he always makes sure to emphasize that the country was now relying on its own resources to grow the economy.
Is that right, Mr. President?
May I ask you this, where were these 'resources' in the past twenty three years?
Is the ZANU PF regime surely telling the nation that they only realized or discovered that we were endowed with vast deposits of gold, diamonds, chrome, platinum, and over 40 others, two or three years ago?
Was this country - from as far back as the 11th century medieval kingdoms, beginning with Great Zimbabwe, Mutapa and Rozvi empires - not founded on these natural resources as gold?
Was the very essence of colonialism in the 19th century not motivated by the desire not only to access, but also to control, our gold (and other minerals)?
Are 'our own resources' not what made colonial Rhodesia a force to reckon with - not only on the continent, but globally - even in the midst of a real UN imposed economic and trade embargo?
So, why on mother earth, does the ZANU PF regime want us to believe that they suddenly awoke to this fact only in 2019?
Let us not forget that these alleged 'sanctions against Zimbabwe' were imposed in 2001 - as travel and financial restrictions on a handful of individuals and entity.
These individuals and entities were never of any real significance to the country's economy.
According to RBZ (Reserve Bank of Zimbabwe) governor John Panonetsa Mangudya, the country's minerals and trade are not under any restrictions or sanctions.
Which is why, in spite of these restrictive measures still largely in place today - most particularly, ZIDERA (Zimbabwe Democracy and Economic Recovery Act) imposed by the USA in 2001 - Mnangagwa is boasting of growing the economy 'using our own resources'.
This shows that these 'sanctions' could have never prevented the nation from prospering ever since their imposition 23 years ago.
We could have easily developed our nation by 'using our own resources'.
So, why were we not doing exactly that?
Why did our economy go into a freefall - characterized by record-breaking hyperinflation reaching staggering figures as 79,600,000,000 percent in 2008 - plunging millions of Zimbabweans into unprecedented destitution?
Where had 'our own resources' gone?
In fact, why did our mineral production reach as low as US$2.7 billion in 2017 - yet today, standing at US$12 billion?
The answer can be found in our diamond production.
It is reported that the country lost over US$15 billion in diamond revenue to corruption and smuggling over the course of 15 years.
Even today, as Mnangagwa brags of 'economic growth', Zimbabwe is still being prejudiced over US$2 billion each year through the smuggling of our minerals.
On top of that, annually we are losing US$3 billion to illicit cross-border financial transactions, and nearly half for our GDP to other corrupt economic activities.
This is the real reason, for the past two decades, our country has been reeling under a seemingly unending economic crisis.
Today, despite all the talk of 'economic growth', nearly half the population is living in extreme poverty, with three quarters earning below the poverty datum line.
Even those undertaking so-called 'empowerment projects' can not afford to purchase or build decent homes for themselves.
No wonder most of our people in Zimbabwe have become dependent on the ruling establishment for handouts, donations and even residential stands - practically rendering them captives to ZANU PF and the state.
Who can dare criticize or question his own benefactor - who is practically his life support system - for fear of losing that farm, or protect, or agricultural inputs?
Does this not show that even those 'benefiting' from government and ruling party 'empowerment projects' are not really empowered - but merely surviving at the mercy of the ruling elite, who can pull the plug at any time?
Our health care institutions are now death traps - as they lack functional ambulances, cancer machines, maternity wards, with such basics as paracetamol, antibiotics and other medications perennially in short supply.
In fact, the government recently purchased 32 helicopters from China - at a grossly overpriced US$320 million (meaning each chopper cost an unbelievable US$10 million) - ostensibly to be used as ambulances!
We all know that helicopters of the type procured by the Mnangagwa regime cost around US$3 million - so what happened to the other US$7 million per chopper?
Yet, unsurprisingly, these helicopters have been spotted ferrying top ZANU PF and government officials to campaign rallies - as the country heads towards the 23rd August harmonized elections.
In the process, our hospitals and clinics remain without the desperately needed vehicles - with most grounded due to a lack of maintenance.
The same deplorable situation is witnessed in our educational institutions - whereby pupils, mostly in rural areas, still conduct their studies in the open, without any learning material as books, chairs and desks.
This brings me to my final point.
Zimbabweans needs to remember that economic growth does not necessarily translate into economic development.
Admittedly, we may have impressive figures of economic growth - but these are worthless when the livelihoods of ordinary citizens remain in poverty.
What is the point in talking about a US$29 billion GDP or US$12 billion mining industry - when Zimbabweans are still languishing in poverty?
That is why the whole talk of an 'upper middle-income economy' will never result in improved living standards for the ordinary citizenry.
Just as with GDP and economic growth - the concept of an 'upper middle-income economy' is a matter of figures contained in books at the ministry of finance - which may mean absolutely nothing to the man, woman and child on the street.
According to the World Bank's Atlas method, for a country to be classified as an 'upper middle-income economy' its GNI (Gross National Income) should be between USS$4,046 and US$12,535 per capita.
Zimbabwe's GNI per capita currently sits at US$1,530 — making it a 'lower middle-income economy'.
However, here is where things get interesting!
Mnangagwa wants the nation to believe that they are suffering because the country is still a 'lower middle-income economy' - and things will significantly improve once we attain 'upper middle-income economy' status, a good seven years from now (in 2030)!
Nothing can be farther from the truth!
How many people know that countries as Rwanda, Madagascar, Tanzania, Senegal and Uganda are 'lower middle-income economies' - yet, their citizens enjoy a higher standard of living than in Zimbabwe (which falls under the same economic classification)?
In other words, even if we are still a 'lower middle-income economy' there is really no need for us to be suffering like this.
Our economic figures already show that we should be enjoying quite decent respectable livelihoods.
Nevertheless, this income that the country is earning (GNI) is benefiting only a few - whilst the majority remains in poverty.
As such, even if these GNI numbers increase to 'upper middle-income economy' levels - there will be nothing for the ordinary citizenry to celebrate - as only the ruling elite and those aligned to them will be singing all the way to the bank.
That is why there will always be money for a US$54 million presidential jet - but absolutely nothing for radiotherapy machines (each only costing US$2 million), or a maternity ward for US$37,000.
Mnangagwa and his cronies are the real 'vene' - not those impoverished people we watch chanting ZANU PF slogans, or manipulated to beat up opposition supporters!
In conclusion, it is clear that supposed 'sanctions' are not why we are enduring such untold misery in Zimbabwe.
It has already been proven, over the past few years, that if the government seriously wanted to 'use our own resources', the economy can easily grow - with or without these 'sanctions'.
However, rampant corruption, mismanagement and looting have been the main reason these resources have never benefited the ordinary people on the ground.
There was really no reason for the poverty we have witnessed over the past two decades, had our abundant resources been used faithfully for the good of the nation.
● Tendai Ruben Mbofana is a social justice advocate and writer. Please feel free to WhatsApp or Call: +263715667700 | +263782283975, or email: mbofana.tendairuben73@gmail.com, or visit website: http://mbofanatendairuben.news.blog/
Source - Tendai Ruben Mbofana
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