Opinion / Columnist
Bond coins and notes - Zimbabwe dollar incarnate
08 May 2016 at 09:31hrs | Views
THE ECONOM
Zimbabwe Economy in a crisis and the actors are in a paralysis to address or take those measures that are sustainable to restore the economy.
On Wednesday the RBZ Governor, a good friend, issued a policy statement which was meant to restore liquidity in our economy. The statement was full of fury and thunder but missed the point of the real cause and attempted to deal with the effect. I know that he knows very well the cause of our crisis but decided to be nice about it is the problems with ourselves. We have surrendered our destiny to an incompetent and greed ruling elite. This statement introduces measures that, on paper, appear to be a panacea to the liquidity crisis. There is an attempt to justify a desperate situation by blaming all else and leave the culprit unscathed.
GOVERNANCE
The problem, fellow countrymen, is the way we are GOVERNED. As long as this is not dealt with decisively the country's economy will continue on a downward trend. Trending towards complete destruction. We are watching with awe while the actors in our governance are having a field day. They have had this field day since the days of the erstwhile DrGedion Gono who always boasted the he was going to reduce us to zero and he did this with great zeal. He defied economic principles with disdain; the circus was such that he became the main actor while those that were elected to govern abdicated that responsibility and indulge in collective docility when it comes to taking the hard and difficult decisions that constituting governing precepts. As a general rulegoverning is about taking decisions that bolsterachievement of national goals which are economic growth, poverty alleviation, national cohesion and so on. Our problem is indeed a governance issue. Policy incoherence is the real dichotomy.
The issue of governance goes back many years which has progressively led to the current situation; this will persist on an accelerated basis if, as a national we continue indulging in collective docility allowing the greedy ruling elite to ruin our future well being.
Cash Crisis should have been foreseen when savings were dwindling partly due to the low or no returns on savings but huge transaction costs on the same. This has been discouraging would be savers who were left at the mercy of the financial institutions who have been making huge profits at the expense of the public. It had become fashionable for taxes and financial charges to introduced willynilly with the public taking it in their stride. Stupid - it is a governance issue.
The country is not earning enough foreign currency to cover its import bill whether for essentials orfor luxuries yet the biggest users of this scarce resource is the governing elite whose endless trips to events that may have very little benefit to the country gobble it, payment of college fees for the chefs kids who are domiciled outside the country, medical bills for the elite outside, indulgence in the importation of luxuries including state of the art motor vehicles for the elite. It's a governance issue - Stupid
The state of the economy is in a very sorry state; industry collapse, economic infrastructure collapse, national and local government delivery and their total incapacitation, drying up of foreign direct investment and generally low levels of local investment. It is a governance issue – Stupid
MEGA INVESTTMENTS
In the recent past we were told of mega deals involving investments from China, Russia, Dangote and others which would see the rapid growth of the economy; were forced marched to implementing the ZimAsset policy which has suffered a stillbirth as most of the ZANU policies have done: ESAP, ZIMPREST, look East Policy and others – the longest route to the west!! The ZimAsset mantra has been the most talked about and yet it has also been the biggest white elephant of recent times. The economy continues to deteriorate.This is because the foundation has been on sand soils with the promoters, who are the ZANU government lacking capacity, credibility as well as clarity thus creating a serious confidence crisis. The confidence issue is at the core of failures of most decisions and policies. We, the stockholders in Zimbabwe, have lost all confidence in ZANU because they have failed dismally to deliver on promises made over the years hence the death of the country's economy. It is a governance issue - Stupid
CORRUPTION
Corruption has reached unprecedented levels both in state enterprises and the private sector. The loss of $15 billion in an $3,8-4 billion cash economy boggles the mind especially when the powers that be are almost mum about it. In normal societies heads should have rolled immediately and the recovery process instituted at lightening speed. In our country the corruption is condoned at the highest levels. The national president claims this huge loss but takes no action on possible culprit, the culprit themselves bask in obscene wealth and care less about the rest of us. A day must come when sanity will prevail; whenthe governing elite will be told to behave or face the music; when the economy will recover; when we stockholders will say enough is enough without fear of incarceration. It is a governance issue – Stupid
Bond Coins and Notes & Multicurrency Regime – Zimbabwe Dollar Incarnate
The reason for the use of bond coins and notes & multicurrency is a manifestation of poor governance however we might want to defend as well as justify it. We went into unprecedented printing of money to satisfy a leadership that threw out of the window normal politico-economy decency and blamed all and sundry except themselves. RBZ appear to be the route to riches for many of the ruling elite politicians as all the printing of money is justified by the top fully knowing the consequences of such unorthodox policy instruments. Once upon a time the RBZ Governor boasted that his economic theory was the way to go for our country but where did that take us? It ruined our economy resulting in the highest inflation levels in non war economy. The productive sector collapsed completely; economic infrastructure decayed; the financial sector collapsed;the informal sector is now thriving.
The reasons why the investing public is skeptical of using banks cannot be overemphasized. With the introduction of bond notes comes restrictions on withdrawals which in itself creates doubts about the ultimate intentions of the policy. When you restrict cash withdrawals you actually encourage people not to save with the banks; let them keep their money under the pillows at home. Confidence in the banking sector is thrown out of the window – no sane person will put his money where he will be unable to withdraw it from.
Guarantee on Savings
In the past bank accounts were raided in order to finance the bureaucracy – what guarantee is there that this will not happen again. Once beaten twice shy goes the old adage. I will not risk my life savings again to fund other requirements of a corrupt regime over and above the huge statutory payments that we already suffer. A saving culture ought to be encouraged in order to harness free money for investment purposes and my future needs.
Plastic Money
Plastic money is the way to go but let us not forget that Zimbabwe's population is predominantly poor and rural based where plastic money may not have immediate use, also use of plastic money presupposes a vibrant savings culture, which is not true in the country today. I have already alluded to the fact that our savings are low and therefore plastic money may not be of use in the immediate term. Create an environment that promotes such schemes otherwise it is an exercise in futility. It is a governance issue – Stupid.
The thriving informal sector especially the clothing, footwear, electrical, blankets, household effects are a drain on the foreign currency or specifically on the United States dollar. You do not print notes to cover things that must be produced locally where the infrastructure exists. You capacitate the industry concerned. Please tell us that it cannot be done overnight. It is now seven years since the multicurrency regime was introduced and which is long time to resuscitate an industry sector. By now Zimbabwe should be on recovery for the manufacturing sector but God forbid we are still in the intensive care unit with no tangible policy direction that will result in the resuscitation of the industrial sector leading to the reduction of the import bill as well as the improvement in the balance of payments.
While we agree that there is a cash crisis the reasons given are plausible but the cause is totally misrepresented. As long as we do not deal with the causes and deal with the effects on the economy future is bleak. It is a governance issue – Stupid
Unless and until there is acceptance that there is a governance issue no solution will be implementable. The ruling elite must swallow there pride, allow other authentic political parties, the civil society, consult the generality of Zimbabweans not party functionaries who survive on patronage, to get together to discuss the way forward. A national INDABA is needed urgently to deliberate on what should be done. Great human beings are those that accept failures, allow restoration of normalcy, allow diverse views which are an enrichment of ideas through cross fertilization.
We have suffered enough to continue indulging in hypocrisy. It is a governance issue –Stupid.
The introduction of the bond notes, however dressed, however justified, is a veiled Zimbabwe dollar incarnation. Conditions have not changed in the positive direction for that to happen. There must be a timeframe within which the economy must recover. To leave it open ended is ludicrous to say the least.
ZANU has ruined the economy in thepast, it will continue doing unless it is stopped quickly. They have no moral right to continue on this destructive road unchecked. The people of this country have been cowed enough to a point of hopelessness but let us rekindle the spirit of independence, refuse to be used as ponies in a futile political game.
Those that have ears hear.
Zimbabwe Economy in a crisis and the actors are in a paralysis to address or take those measures that are sustainable to restore the economy.
On Wednesday the RBZ Governor, a good friend, issued a policy statement which was meant to restore liquidity in our economy. The statement was full of fury and thunder but missed the point of the real cause and attempted to deal with the effect. I know that he knows very well the cause of our crisis but decided to be nice about it is the problems with ourselves. We have surrendered our destiny to an incompetent and greed ruling elite. This statement introduces measures that, on paper, appear to be a panacea to the liquidity crisis. There is an attempt to justify a desperate situation by blaming all else and leave the culprit unscathed.
GOVERNANCE
The problem, fellow countrymen, is the way we are GOVERNED. As long as this is not dealt with decisively the country's economy will continue on a downward trend. Trending towards complete destruction. We are watching with awe while the actors in our governance are having a field day. They have had this field day since the days of the erstwhile DrGedion Gono who always boasted the he was going to reduce us to zero and he did this with great zeal. He defied economic principles with disdain; the circus was such that he became the main actor while those that were elected to govern abdicated that responsibility and indulge in collective docility when it comes to taking the hard and difficult decisions that constituting governing precepts. As a general rulegoverning is about taking decisions that bolsterachievement of national goals which are economic growth, poverty alleviation, national cohesion and so on. Our problem is indeed a governance issue. Policy incoherence is the real dichotomy.
The issue of governance goes back many years which has progressively led to the current situation; this will persist on an accelerated basis if, as a national we continue indulging in collective docility allowing the greedy ruling elite to ruin our future well being.
Cash Crisis should have been foreseen when savings were dwindling partly due to the low or no returns on savings but huge transaction costs on the same. This has been discouraging would be savers who were left at the mercy of the financial institutions who have been making huge profits at the expense of the public. It had become fashionable for taxes and financial charges to introduced willynilly with the public taking it in their stride. Stupid - it is a governance issue.
The country is not earning enough foreign currency to cover its import bill whether for essentials orfor luxuries yet the biggest users of this scarce resource is the governing elite whose endless trips to events that may have very little benefit to the country gobble it, payment of college fees for the chefs kids who are domiciled outside the country, medical bills for the elite outside, indulgence in the importation of luxuries including state of the art motor vehicles for the elite. It's a governance issue - Stupid
The state of the economy is in a very sorry state; industry collapse, economic infrastructure collapse, national and local government delivery and their total incapacitation, drying up of foreign direct investment and generally low levels of local investment. It is a governance issue – Stupid
MEGA INVESTTMENTS
In the recent past we were told of mega deals involving investments from China, Russia, Dangote and others which would see the rapid growth of the economy; were forced marched to implementing the ZimAsset policy which has suffered a stillbirth as most of the ZANU policies have done: ESAP, ZIMPREST, look East Policy and others – the longest route to the west!! The ZimAsset mantra has been the most talked about and yet it has also been the biggest white elephant of recent times. The economy continues to deteriorate.This is because the foundation has been on sand soils with the promoters, who are the ZANU government lacking capacity, credibility as well as clarity thus creating a serious confidence crisis. The confidence issue is at the core of failures of most decisions and policies. We, the stockholders in Zimbabwe, have lost all confidence in ZANU because they have failed dismally to deliver on promises made over the years hence the death of the country's economy. It is a governance issue - Stupid
CORRUPTION
Corruption has reached unprecedented levels both in state enterprises and the private sector. The loss of $15 billion in an $3,8-4 billion cash economy boggles the mind especially when the powers that be are almost mum about it. In normal societies heads should have rolled immediately and the recovery process instituted at lightening speed. In our country the corruption is condoned at the highest levels. The national president claims this huge loss but takes no action on possible culprit, the culprit themselves bask in obscene wealth and care less about the rest of us. A day must come when sanity will prevail; whenthe governing elite will be told to behave or face the music; when the economy will recover; when we stockholders will say enough is enough without fear of incarceration. It is a governance issue – Stupid
Bond Coins and Notes & Multicurrency Regime – Zimbabwe Dollar Incarnate
The reason for the use of bond coins and notes & multicurrency is a manifestation of poor governance however we might want to defend as well as justify it. We went into unprecedented printing of money to satisfy a leadership that threw out of the window normal politico-economy decency and blamed all and sundry except themselves. RBZ appear to be the route to riches for many of the ruling elite politicians as all the printing of money is justified by the top fully knowing the consequences of such unorthodox policy instruments. Once upon a time the RBZ Governor boasted that his economic theory was the way to go for our country but where did that take us? It ruined our economy resulting in the highest inflation levels in non war economy. The productive sector collapsed completely; economic infrastructure decayed; the financial sector collapsed;the informal sector is now thriving.
Guarantee on Savings
In the past bank accounts were raided in order to finance the bureaucracy – what guarantee is there that this will not happen again. Once beaten twice shy goes the old adage. I will not risk my life savings again to fund other requirements of a corrupt regime over and above the huge statutory payments that we already suffer. A saving culture ought to be encouraged in order to harness free money for investment purposes and my future needs.
Plastic Money
Plastic money is the way to go but let us not forget that Zimbabwe's population is predominantly poor and rural based where plastic money may not have immediate use, also use of plastic money presupposes a vibrant savings culture, which is not true in the country today. I have already alluded to the fact that our savings are low and therefore plastic money may not be of use in the immediate term. Create an environment that promotes such schemes otherwise it is an exercise in futility. It is a governance issue – Stupid.
The thriving informal sector especially the clothing, footwear, electrical, blankets, household effects are a drain on the foreign currency or specifically on the United States dollar. You do not print notes to cover things that must be produced locally where the infrastructure exists. You capacitate the industry concerned. Please tell us that it cannot be done overnight. It is now seven years since the multicurrency regime was introduced and which is long time to resuscitate an industry sector. By now Zimbabwe should be on recovery for the manufacturing sector but God forbid we are still in the intensive care unit with no tangible policy direction that will result in the resuscitation of the industrial sector leading to the reduction of the import bill as well as the improvement in the balance of payments.
While we agree that there is a cash crisis the reasons given are plausible but the cause is totally misrepresented. As long as we do not deal with the causes and deal with the effects on the economy future is bleak. It is a governance issue – Stupid
Unless and until there is acceptance that there is a governance issue no solution will be implementable. The ruling elite must swallow there pride, allow other authentic political parties, the civil society, consult the generality of Zimbabweans not party functionaries who survive on patronage, to get together to discuss the way forward. A national INDABA is needed urgently to deliberate on what should be done. Great human beings are those that accept failures, allow restoration of normalcy, allow diverse views which are an enrichment of ideas through cross fertilization.
We have suffered enough to continue indulging in hypocrisy. It is a governance issue –Stupid.
The introduction of the bond notes, however dressed, however justified, is a veiled Zimbabwe dollar incarnation. Conditions have not changed in the positive direction for that to happen. There must be a timeframe within which the economy must recover. To leave it open ended is ludicrous to say the least.
ZANU has ruined the economy in thepast, it will continue doing unless it is stopped quickly. They have no moral right to continue on this destructive road unchecked. The people of this country have been cowed enough to a point of hopelessness but let us rekindle the spirit of independence, refuse to be used as ponies in a futile political game.
Those that have ears hear.
Source - Jacob JD Dube - Treasurer General/Resource Mobilization and Finance Secretary Zimbabwe African Peoples Union(ZAPU)
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