In support of lean Govt, internalisation going a step further

THE news that President Emmerson Mnangagwa, is set to bring in a lean government, and has set in trend a policy to curb externalisation of funds is most welcome. If effective, the policy to curb externalisation will certainly improve liquidity, avail the much needed capital for local productivity, and hence domestic investment.

Foreign investment will certainly follow once macroeconomic policies such as these promulgations by the President demonstrate that Zimbabwe is earnestly charting a course to build the economy — charity begins at home.

However, the effect of these policies can work better with several other supportive policies.

Such supportive policies include policies that seek to discourage the very motive/incentive to externalise, policies that seek to discourage big Government (unnecessarily), policies that drive local productivity and hence domestic and foreign investment.

Policies that seek to discourage externalisation derive from a comprehensive understanding of why local economic agents may externalise.

Economic agents will typically externalise for a variety of reasons, not least as a result of a lack of confidence in the security and diversity of domestic investment instruments (property, bonds, equities, among others), a lack of confidence in the local education system, a deficient, inefficient health system, a desire to buy luxuries not locally produced, this among other wants that local productivity cannot satisfy.

In the latter circumstances, economic agents will want to keep their balances outside the country, in order to make the external purchases that they can’t find locally — that is externalise.

Apart from directly targeting the externalisation through a policy such as the one set by the President, Zimbabwe will do well by addressing the deficiencies in education, health and other such services and products.

A revamping of such services and products should be combined with a promotion of consumption of domestically produced goods and services — “buy Zimbabwe”.

In the latter regard, consumption of externally produced goods and ser- vices should wholly be stigmatised and looked down on.

Consumption of external health services, education services by high ranking officials such as the President, ministers, among others must especially invite vitriol.

These are policies embraced by progressive governments.

The German Chancellor will not for instance be seen in public riding a British made vehicle, or be seen to be treated in the US for any health problems — that will cause a row.

In corollary the President of Zimbabwe, must for instance ensure that his children, his grandchildren are locally educated, and that he receives medical attention locally.

Such a practice will ensure that the President arranges both his own resources and those of the country to build quality education services, health services both for his own interest and for the interest of the country at large.

In these circumstances there will not be much need for large scale externalisation.

Policies that seek to discourage big government, drive productivity and hence create jobs, must firstly embrace those principles and practices of good governance — transparency, accountability, fairness and responsibility.

This means that everything that every economic agent does, from the President to the lowest ranking economic agents, and vice versa, must be subject to regular performance assessment, in accordance with codified high performance standards, and in zero tolerance.

This in turn means that the President and his Government have a good grasp of what it is they want to achieve in a given accounting/fiscal year, in the various economic sectors, how they will achieve and who exactly will be part of the execution team.

In these circumstances there will be no duplication of functionaries, and the corruption that goes with it — hence lean government.

In corollary the strategies and the budgets for such economic sectors must not be nebulous, and vulnerable to political meddling.

Any such political meddling will among other things encourage a government of untouchable cult personalities, patronage — when we begin to witness huge servile indolent crowds around the President such as youths, sons of war collaborators among others, fawning over the President, inciting such things a one centre of power.

Of course the new President of Zimbabwe must never succumb to such cheap eulogies from indolent slothful people bend on “money for nothing”.

In order to guard against such mix up of party politics and Government, and consequent political meddling, there must be that distinction between political parties, ruling political party and the institutions of Government.

The ruling party is mandated by the people, in terms of the constitution, to translate its manifesto through existing permanent government institutions, but not to make those Government institutions extensions of the ruling party, in the process allowing social/communal figures such as “amai” to wade into Government.

Government on its part must have strong independent institutions of the Legislative, the Executive and the Judiciary.

The Executive in particular must be a respectful body that desist from meddling with the Legislative and Judiciary.

For this reason Zimbabwe’s constitution must be revised to remove all parts of the constitution that provide for the President’s involvement in the Judiciary and the Legislature.

Such provisions go against the principles of good governance.

Martin Tarusenga is General Manager of Zimbabwe Pensions & Insurance Rights, email, martin@zimpirt.com; telephone; +263 (0)4 883057; Mobile; +263 (0)772 889 716 Opinions expressed herein are those of the author and do not represent those of the organisations that the author represent