EDITORIAL : THE BUSINESS DAY, SOUTH AFRICA

         

 

Yet another wrong turn in Zimbabwe

HOW often is it possible for Zimbabwe to take a turn for the worse?

You would expect that at some point, a social disaster of the scale that has afflicted Zimbabwe would reach its nadir. However, as sad as it is to say so, Zimbabwe has taken a turn for the worse.

In an illuminating study, the Brenthurst Foundation has tracked Zimbabwe’s decline, up to suggestions in recent times of improvement, including economic growth for the first time in a decade. Sadly, according to this study, these green shoots appear to be flattering to deceive, and more problems loom.

Despite a level of development second in the region only to SA in the early 1990 s, Zimbabwe registered 12 years of economic shrinkage associated with hyperinflation until forced dollarisation in 2009. At its peak in 2008, inflation was estimated at 6,5 quindecillion novemdecillion percent — or 65 followed by 107 zeros. The Global Political Agreement signed between Zanu (PF) and the opposition Movement for Democratic Change (MDC) and its smaller offshoot in 2008 suggested a possible partial way out and led to the government of national unity . At last, economic growth reappeared, although today most of the civil service is still being paid less than the minimum wage in SA.

New problems are threatening even this min uscule economic resurgence. The politics of Zimbabwe is still deeply flawed, and investor confidence is low, with the government’s apparent determination to nationalise much of the remaining private sector, to say nothing of the growing corruption and cronyism, the report states.

One of the biggest problems is that Zanu (PF) has used the comparative improvement in the economy and access to income to step up intimidation around the country, to the extent that only half of the population feel they would be free to vote for whatever party they choose, according to surveys.

It is in this context that Zanu (PF) has insisted on the indigenisation policy going ahead. The policy forces foreign companies to sell half their equity, not only to Zimbabweans, but Zimbabweans specified by the government. Only in the flat- earth mentality of Zimbabwean economics could such a move even be considered. The notion that this plan will "retard investment" is such a radical understatement it hardly bears examination.

One of the disturbing aspects of the programme is that it appears to be garnering some support from none other than the MDC. At the recent World Economic Forum, MDC leader and Prime Minister Morgan Tsvangirai said: "Across the political divide we agree on the principle of citizenship empowerment ... we have been consistent in the area of indigenisation." This is despite him saying that indigenisation was "empty rhetoric" earlier this year.

It seems the unity government is doing what its detractors feared most: strengthening Zanu (PF)’s position. Zanu (PF) has been provided with a lifeline, and is using its position in the unity government to consolidate its hold on power. The consequence is that for once it is actually Zanu (PF) that is pressing for early elections.

What should regional nations do now? The Brenthurst paper suggests we should not rely solely on external intervention nor place undue expectations on the MDC, "whose performance in the unity government has fallen well short on a number of levels". It calls for a new approach that should comprise several elements, including renewed international pressure for reform, stronger regional leadership by SA , and a commitment by the opposition in Zimbabwe to become a credible, democratic and accountable alternative to Zanu (PF).

This approach seems eminently reasonable, but also very hopeful. If Zimbabwe insists on what is effectively the theft of South African companies, perhaps more comprehensive sanctions should be considered. It is extraordinary that a company like Old Mutual can still be invested in Zanu (PF)’s despotic media interests . Corporate SA , at the very least, should know better.

People as well as policies

WHILE yesterday’s elections will inject fresh blood into municipal governance at a political level, the public servants and problems inherent in the system remain.

Deputy Co-operative Governance Minister Yunus Carrim’s comments during last week’s Helen Suzman Foundation roundtable discussion on local government are therefore most welcome.

Mr Carrim hinted at another major overhaul of the system of municipal governance.

The proposed Monitoring, Support and Intervention Bill would highlight the crucial role that central and provincial governments should play in assisting municipalities to be more effective through careful monitoring and control of their finances. The aim of the new legislation would be to overcome the obstacles that prevent some municipalities from delivering basic services, and would give the central government the power to intervene in certain circumstances.

The functioning of a successful municipality is determined by the capacity of its personnel. While amendments to financial and other bureaucratic systems will surely help delivery, without dedicated and skilled public servants even the most transparent and accountable systems will not produce results.

The Local Government Municipal Systems Amendment Act, passed last month but not yet promulgated, is meant to address the personnel issue by ensuring that better-skilled public servants are hired and that the negative effects of political churn are limited. Specifically, it will put restrictions on top posts being held by political appointees. The new law also aims to prevent financial managers who have been found guilty of fraud being re-employed in other towns.

However, measures put in place to improve function have a habit of causing unnecessary red tape that actually hinders delivery. The intended purpose of the Municipal Finances Management Act is to ensure that the processes of procurement and execution in particular are transparent, and to make municipalities accountable for how they spend their budgets.

For any government to address its mandate successfully requires both sound systems and skilled bureaucrats, so it is essential that deficiencies in both areas are addressed simultaneously.