‘Govt rhetoric worsening Zim economic situation’

BY MTHANDAZO NYONI

TURNING around Zimbabwe’s economic fortunes will require more than technocratic approaches and government should urgently create platforms for an inclusive and sustained dialogue, says a new report by a global independent policy research organisation.

In its latest report titled New Dispensation? Bravado, Incoherencies and Costly Blunders, the SIVIO Institute (SI) said government’s rhetoric has worsened the country’s economic situation.

“In many instances, those in government have made claims about immediate recovery of the economy and failed to deliver on those promises. The economy and its fundamentals, unlike other political affairs, cannot be run through propaganda. All these have contributed towards eroding citizens’ confidence in government,” the report reads in part.

“The production base of the economy is now narrower than before independence, disarticulated and precariously dependent on external factors and the policy and institutional capabilities remain very poorly developed. The economy is in a crisis.”

“Turning around the fortunes of the country will require more than technocratic approaches. There is an urgent need to create platforms for an inclusive and sustained dialogue,” it said.

SI pointed out that there is consensus across the board that the socio-economic conditions in the country have worsened for most of Zimbabweans since the 2018 elections.

“The optimism that characterized the Zimbabwean story soon after the November 2017 coup seems to have faded into the sunset and in its place, we have a renewed sense of despair, disappointment and confusion,” it said. The organisation said since August 2018, the country has been characterised by soaring inflation, high food prices, rising unemployment, shortage of fuel and power cuts that last up to 18 hours.

“It is estimated that the economy will shrink despite the urgent and real need for equitable growth. Many reasons have been given for the negative growth, including the drought, response to the devastation caused by Cyclone Idai,” the report reads.

“Wages have been eroded, thanks to an acknowledgement that the surrogate currency introduced through the back-door years ago is not equivalent to the United States dollar. Prices continue to track the rate of the US dollar against the local currency, but salaries have mostly been stagnant,” it added.

Indicating that effective demand for consumer goods has been significantly eroded, the institute said the average annual income in Zimbabwe is approximately US$1 000 and cost of living in Zimbabwe is approximately 28% higher than in South Africa. Wages in South Africa averaged ZAR13 332,19 per month (US$817,19 per month) from 2004 until 2019, while in Zimbabwe real earnings have declined by a factor of 10.

5 Comments

  1. Lies, lies , lies. What kind of experts are these! Zimbabwe has experienced economic downturn for the past decades and the worst moments came when we had no choice but to do away with our own currency. To link that to events of ten years later, that is in 2018 is naivity of the highest order for a certain group, whatever its mandate, which claims to be composed of experts of some sort. To talk of higher inflation, comparing figures that are recorded under totaly different circumstances is foolishness of the highest order for an expert in economics. How do you honestly compare inflation under a bonded currency regime and under a floated currency regime and then conclude that it is a sign of a fast rising inflation?! Does that make any sence to any real economist? Why does not this group take their propaanda elsewhere? Zimbabwe has resorted to bringing back its own currency and many natural adjustments will hapen to reflect the reality on the ground and this is exacly what we are seing.

  2. There is no meaningful reason to say that those changes are caused by the absence of a Gnu. Zimbabwe is reconstructing the economy altogether and that point should especialy be emphasised by any honest economic analyst. There nothing whatsoever that the current administration is doing wrong and even the international monetary fund has said it over and over again. Austerity measures in any economy are always bound to be painful no mater what and the president and the minister of finance have openly and repeatedly stated that fact. Austerity measures are there to restore a sound fiscal status without which there will never be a real economy anywhere in the world and such measures are painful but they deliver no mater what. It is the same as simple saving for the purpose of starting a liquid and viable business. The only advice I have for the authorities is for them to walk the talk on the availability of safety nets which are very necessary under austerity conditions to relieve the populace of their effects.

  3. The only rhetoric which is distracting economic progress is that from the western created and backed opposition starting with threats to abolish chinese investments if they win elections and form a government, a nation which has now ocupied a pole position as far as the global economic giants are concerned. They even organise and carry out vere distructive violent protests as they did in August and January. The opposition is backed in this distructive propaganda by the western sponsored electronic and print media which churns out all sorts of falsehoods which are meant to paint our country as unsafe day in day out. Our so called opposition should learn from genuine opposition parties who do not demonise their respective countries and ask for sanctions which would make everyone suffer incuding their own suporters. The whole society needs to work together including the media and give the populace correct information as from renowned global financial institutions not those other bogus groups.

    1. Hahahaha austerity measures should to be for everyone. When our people are dying at Pari yours are being hospitalized outside the country. When our kids are failing to go to school yours are studying in expensive schools even outside the country. What austerity measures are you talking about. Where is your minister of finance’s family? outside the country enjoying austerity measures equally as our kids. Do not nonsense.

    2. Sit down brother. Which party murdered 20 000 people in the early 80’s? Which party murdered people when it lost the 2008 elections? Which party executed unarmed, innocent and fleeing Zimbabweans the last few months? Let me help you, there’s only one side shooting. Where is this austerity when ED hires a private jet from abroad to come and shuttle him between Harare and Bulawayo? Right now a jet was hired to fly over Singapore to come and pick your comrades up, fly back to Singapore to pick up the departed, then fly back to Zimbabwe before returning to its base. Let me ask you something, how many lives would the millions misspent here save in Zimbabwean hospitals if medicines were bought instead of this waste? Mugabe doesn’t need a private jet, he will be in the cargo hold. Why not pay 10k and have him flown commercial? It is people like you who cheer lead these useless ZANU politicians that have contributed to the suffering of Zimbabweans. I don’t know where you get your optimism from. 39 years with the same party with its ruinous policies and you think they will finally get it right? You are a joke.

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