MDC MPs table alternative economic policy

OPPOSITION MDC Alliance MPs yesterday tabled their party’s alternative economic policy, which includes demonetising the surrogate bond note and for the country to join the Rand Monetary Union.

BY VENERANDA LANGA

Their presentations were made through a heated motion on economic hardships introduced in the National Assembly by Hatfield MP Tapiwa Mashakada and seconded by Harare East MP Tendai Biti.

Mashakada said the country missed a big opportunity during the November 2017 Operation Restore Legacy, where, instead of rushing to elections, a national transitional authority should have been introduced to restore confidence in the economy.

“The solutions to our economic problems right now is to join the Rand Monetary Union and stop government borrowing and issuance of Treasury Bills, tighten our borders for revenue collection because right now, the uncollected revenue is $4 billion, and we also need leadership or political will to grow the economy,” he said.

Mashakada said there was also need to decommission the bond notes, and price goods in rands instead of in the United States dollar because the country was importing most of its goods from South Africa.

“The reasons we should adopt the rand is that 60% of our imports, like fuel and medicines, come from South Africa, and if you buy something in SA, for R100 and then sell it for $100, then you are causing inflation,” he said.

Mashakada criticised the stabilisation measures recently announced by Finance minister Mthuli Ncube.

He said Ncube was pursuing economic stabilisation, which is about balancing the books and yet the country needed a structural transformative agenda to kick-start the economy.

“You just want a good balance sheet through servicing debts, but at this juncture, can we pay $5 billion to service debts when our roads are in bad shape and there are no drugs?
These multilateral institutions are debt collectors and they dangle the carrot and then later tell you to reform this and that,” Mashakada said.

“What we need to do as a policy alternative is to go for the Highly Indebted Poor Countries Strategy (HIPIC), and we qualify for that. We speak to the creditors so that we pay a proportion and then the rest we use it to build schools, hospitals and other infrastructure.”


Biti said the economy has been battered for years, with self-induced economic reflections.

He said the economic malaise was linked to political legitimacy, where people that allegedly “rigged the elections cannot rig the economy”.

Biti said Zimbabwe was going back to the 2008 recession characterised by the absence of demand, where 95% of unemployed people were chasing a few goods.

“Such recession in less than two years is a sign of failure and it was only experienced by Germany in between two world wars, but Zimbabwe is not in a war and the problems are man-made,” Biti said.

“The other challenge is the huge budget deficit in excess of 25% of gross domestic product, and we spend money as if it grows on trees, and the challenge of our deficit is that it is for consumption, hiring luxury jets, bribing the population during elections and buying luxury cars.”

He said government’s overdraft facility at the Reserve Bank of Zimbabwe was now at $2,4 billion and it was raiding people’s nostro accounts to finance it, resulting in the cash shortages.

“The $21 billion debt is criminal and it means that even a child being born now owes money which they do not know about and the dangerous thing about that debt is that you are eating into the future,” he said.

“The solution is that we need to bring fiscal consolidation and eat what we kill. We have to go back to the issue of cash budgeting.”

Loading...

20 Comments

  1. wait until you are in government or better still if it is in good faith just hand it over to those in power for a trial run

    1. The first thing is for them to accept that they have failed and also accept that they need ideas from the opposition.

  2. This is not something new,I watched Mthuli’s interview before he joined this team. He suggested some of those things. Our main problem is this Mangudya and the bond thing, I dont know why they are keeping the two.

  3. MDC MPs surely are the best in Parliament so far.

  4. For once, I agree with Mashakada.

  5. What are the conditions to join the Rand Monetary Union? We can just use the rand without joining the RMU.

  6. Comment…Tinzwewo kubva MPs vebato riripanyanga, pamwe vane zvirinaniwo pane izvi. Muriko here uko varipanyanga? Nekuti panoda kutanga payenzaniskwaka powonekwa zviri nani. Atingati zvataurwa newe kwamanini zvakanaka, wekwamaiguru asati apawo zvake. Heyo yapinda mudare veZanu PF, taurayi dzenyuwo pfungwa.
    Kana muchitsira musanyara, ndokuti nyika ifambe. Munedzenyuwo
    ngadzinzwikwewo.

  7. Give credit where it is due.I consider this constructive in that instead of just opposing, the MDC has offered something on the table.Parliament should rightly be a platform for a battle of ideas.Lets hope for more from other MPs, including the likes of Chinoz

    1. Quite constructive ideas from MP Mashakada, but things get so confused when Biti brings in unsubstantiated political claims!

  8. The move by MDC is constructive, and this should be analyzed by other members of our parliament so that they can come up with what will be best for the development of our country. Hope good economic moves will not be suppressed be political struggle.

  9. Eliasha you just criticise nezvimwe zvine sense. Haisi mhosva yako vamwe vakazvagwa nepfungwa dzakasangana nesewage. Chakanaka chakanakawo ngachirumbidzwe. The government should try this policy. When we use the Rand, the Chinese wont take the Rand to China like what they are doing with the US$ and we wont have a shortage of this currency. Bond note must GO.

  10. Eliasha pfungwa dzinenge dzakasangana neSewage. You criticise even good ideas. If we switch to the Rand, the Chinese wont take the rand like what they are doing with the US$. I think our government must try this policy even if it comes from MDC Alliance. We have a listening President so I expect the President ED Mnangagwa to take into consideration for our country to move forward.

  11. Eliasha pfungwa dzinenge dzakasangana neSewage. You criticise even good ideas. If we switch to the Rand, the Chinese wont take the rand like what they are doing with the US$. I think our government must try this policy even if it comes from MDC Alliance. We have a listening President so I expect the President ED Mnangagwa to take into consideration for our country to move forward.

    1. Mtuli before joining the team was of the rand opion i think he will take it

  12. MP Mashakada is very progressive thinking. Biti is just power hungry. I do not why he keeps raising the rigging issue which all balanced thinking people and observers failed to get evidence of!

  13. Zvazviri Ndozvazviri

    Comment…Pfungwa dzabva kumwana wekwamainini here kana wekwamaiguru? Muno pfungwa dzakanaka dzinobva kune wekwamaiguru chete. Dzikawuya newekwamainini kana dayi dzakanaka seyi todira SEWAGE DZOITA CHOLERA. ZVAZVIRI NDOZVAZVIRI.

  14. do u think by joining the RAND union is going to magical put it on the street.the cost of buying forex is why prices are high, export & earn it; produce here as we used to & we don’t need to import

  15. Jemedzarineshumbandozviziva

    Commen…….Tapiwa Mashakada uyu zviye mwana wekwamainini kana wekwavahosi? Kana ari wekwavahosi dzakanaka chose. Asi kana ari wekwamainini hadzina maturo. Ndomuno, muno munonzi
    muno. 2009-2013 zvakataugwazve, asi totarisa dzimba veduwe. Muno FOREX ahiwuye nekutengesa zvigadzirwa zvedu kune dzimwe nyika. Asi kuti FOREX inouya nekutenga paROADPORT, COPACABANA, EASTGATE, FIRST STREET nedzimwewo nzvimbo dziri mune mamwe maguta. Ndochikonzero mabhanga emumigwagwa akawandisa kudayi. Mari ikasafamba nenzira iyoyi hatiyiti mazimariwo. MUNO MUNONZI MUNO, UYE NDOZVEMUNO. ZVAZVIRI NDOZVAZVIRI MUNO.

  16. read very carfully these thingS in the rmu rand union there are conditions which need to be respescted WHICH ARE NOT FAVOURABLE TO OUR COUNTRY AS WELL . even the FINANCE MINISTER HAS THOSE OPTIONS ON THE TABLE RIGHT NOW THREE ALTERNATIVES HE IS STILL TO DISCUSS AND DECIDE ON THEM .

  17. Nothing new here. Read Mthuli Ncubes three point plan article before he joined Government. Just for evryone’s information the average MDC is a disaster – they are drawn from that Rebel outfit called vanGuard. They really need to go back to school and get a bit of civilization.

Leave a Reply

Your email address will not be published.