To­wards a pros­per­ous and em­pow­ered Up­per Mid­dle In­come So­ci­ety by 2030

Sunday News (Zimbabwe) - - Front Page -

THE will from this week be pub­lish­ing parts of the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme Re­forms Agenda to con­sci­en­tise the pub­lic on the Govern­ment’s new eco­nomic tra­jec­tory.

IN­TRO­DUC­TION

THE Tran­si­tional Sta­bil­i­sa­tion Pro­gramme over Oc­to­ber 2018 to December 2020, which con­tains and ex­presses the as­pi­ra­tions of the peo­ple of Zim­babwe, draws its pol­icy thrust from Vision 2030.

Vision 2030

The as­pi­ra­tions of Vision 2030 will be re­alised through five strate­gic clus­ters, namely: Gov­er­nance; Macro-eco­nomic Sta­bil­ity and Re-en­gage­ment; In­clu­sive Growth; In­fra­struc­ture and Util­i­ties; So­cial De­vel­op­ment.

The as­pi­ra­tions of Vision 2030 of a Pros­per­ous and Em­pow­ered Up­per Mid­dle In­come So­ci­ety are an­chored by val­ues and objectives which in­clude: Im­proved Gov­er­nance and the Rule of Law; Re-ori­en­ta­tion of the coun­try to­wards Democ­racy; Up­hold­ing Free­doms of Ex­pres­sion and As­so­ci­a­tion; Peace and Na­tional Unity; Re­spect for Hu­man and Prop­erty Rights; At­tain­ment of Re­spon­sive Pub­lic In­sti­tu­tions; Broad based Cit­i­zenry Par­tic­i­pa­tion in na­tional and so­cioe­co­nomic de­vel­op­ment pro­grammes; Po­lit­i­cal and Eco­nomic Re-en­gage­ment with the global com­mu­nity; Cre­ation of a Com­pet­i­tive and Friendly Busi­ness En­vi­ron­ment; En­hanced do­mes­tic and for­eign in­vest­ment; An ag­gres­sive fight against all forms of Cor­rup­tion.

The re­al­i­sa­tion of Vision 2030 will be through the im­ple­men­ta­tion of the fol­low­ing Strate­gic Pro­grammes, sup­ported by ap­pro­pri­ate an­nual Na­tional Bud­gets: A twoand-a-quar­ter year “Tran­si­tional Sta­bil­i­sa­tion Pro­gramme” to run from Oc­to­ber 2018 to December 2020. (And) Two FiveYear De­vel­op­ment Strate­gies, with the first one run­ning from 2021-2025, and the sec­ond cov­er­ing 2026-2030.

Tran­si­tional Sta­bil­i­sa­tion Pro­gramme Objectives

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme will fo­cus on: Sta­bil­is­ing the macro-econ­omy, and the fi­nan­cial sec­tor; In­tro­duc­ing nec­es­sary pol­icy, and in­sti­tu­tional re­forms, to trans­form to a pri­vate sec­tor led econ­omy; Ad­dress­ing in­fra­struc­ture gaps; Launch­ing quick-wins to stim­u­late growth.

The Pro­gramme will pri­ori­tise quick-wins, and pro­vide the nec­es­sary pre­lude to the two Five-Year De­vel­op­ment Strate­gies that will run from 2021-2030. In craft­ing this Pro­gramme, in­puts of var­i­ous stake­hold­ers, who in­clude busi­ness, labour, civic so­ci­ety, de­vel­op­ment part­ners, and other groups were taken on board.

Re­form Ini­tia­tive

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme ac­knowl­edges pol­icy re­form ini­tia­tives of the New Dis­pen­sa­tion to stim­u­late do­mes­tic pro­duc­tion, ex­port­ing, re­build­ing and trans­form­ing the econ­omy to an Up­per Mid­dle In­come sta­tus by 2030. Much of the re­form ini­tia­tive was out­lined in var­i­ous pol­icy pro­nounce­ments by the Pres­i­dent, His Ex­cel­lency E D Mnan­gagwa, start­ing from his In­au­gu­ral Ad­dress on 24 November 2017, as well as in the 2018 Na­tional Bud­get State­ment out­lined to Par­lia­ment on 7 December 2017.

Fur­ther­more, Govern­ment also had the op­por­tu­nity to re­in­force the core val­ues and de­vel­op­men­tal agenda of the New Dis­pen­sa­tion to­wards an Up­per Mid­dle In­come Econ­omy by 2030 on 19 April 2018 at the World Bank on the side­lines of the Spring Meet­ings of the In­ter­na­tional Mon­e­tary Fund (IMF) and World Bank in Wash­ing­ton DC. Co-op­er­at­ing part­ner rep­re­sen­ta­tion in­cluded se­nior man­age­ment of the IMF, World Bank, the African De­vel­op­ment Bank (AfDB), as well as the bi­lat­eral part­ners con­sti­tut­ing ma­jor share­hold­ing in the AfDB, World Bank and IMF.

Sac­ri­fice and Per­se­ver­ance

The re­al­i­sa­tion of the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme short term quick-wins for the econ­omy will be un­der­pinned by adop­tion of, and strict ad­her­ence to, macro-eco­nomic sta­bil­i­sa­tion poli­cies that re­quire painful trade-off and sac­ri­fice.

This is nec­es­sary to ad­dress fun­da­men­tal chal­lenges be­set­ting the econ­omy over the im­me­di­ate term, tar­geted over Oc­to­ber 2018 to December 2020. Al­ready, signs of green shoots are emerg­ing, in re­sponse to the good­will aris­ing from po­lit­i­cal, gov­er­nance and eco­nomic re­forms in­tro­duced by the New Dis­pen­sa­tion.

Macro-eco­nomic sta­bil­ity should al­low for set­ting up of the nec­es­sary foun­da­tion for an ef­fec­tive launch of Zim­babwe’s de­vel­op­men­tal pro­grammes and pro­jects, with the first set to be out­lined in the Na­tional De­vel­op­ment Strat­egy for 20212025.

Open­ing the Econ­omy for Busi­ness

In or­der to at­tain the de­sired growth rate tra­jec­tory, Govern­ment will un­der­take sig­nif­i­cant re­forms, such as im­prov­ing the ease of do­ing busi­ness, im­prov­ing com­pet­i­tive­ness, and open­ing the coun­try to in­ter­na­tional in­vestors and fi­nanciers. This will help Govern­ment to fo­cus more on pol­icy de­sign, in­sti­tu­tional ef­fi­ciency and reg­u­la­tion, that way fa­cil­i­tat­ing the pri­vate sec­tor to play a ma­jor role in run­ning busi­nesses.

Harnessing the dig­i­tal econ­omy and dig­i­tal en­trepreneur­ship has the po­ten­tial of creat­ing jobs for the youths, of­ten at a low cost. This will en­tail im­ple­men­ta­tion of con­crete plans to cre­ate an en­abling en­vi­ron­ment for the dig­i­tal econ­omy to thrive, in­clud­ing sup­port­ing the avail­abil­ity of faster and re­li­able in­ter­net con­nec­tion.

Rule of Law, Hu­man and Prop­erty Rights

This will fur­ther be re­in­forced by gov­er­nance re­forms, fair­ness in ap­pli­ca­tion of the rule of law, hu­man rights, and up­hold­ing of prop­erty rights.

Pro­gramme High­lights

As al­luded to above, the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme tar­gets quick-win ini­tia­tives, through re­spec­tive growth stim­u­la­tion pack­ages, as well as in­sti­tut­ing sup­port­ive ad­just­ment mea­sures, which ad­dress var­i­ous ex­ist­ing in­ter­nal and ex­ter­nal macro-eco­nomic and fi­nan­cial sec­tor im­bal­ances, and thereby, pro­vid­ing a foun­da­tion for ro­bust eco­nomic growth and de­vel­op­ment beyond 2020.

The in­tro­duc­tory Sec­tion of the Pro­gramme out­lines the fun­da­men­tal quick-win macro-eco­nomic tar­gets to be re­alised over Oc­to­ber 2018 and December 2020. The tar­gets re­late to Per Capita In­come1, and the re­quired Eco­nomic Growth Rates aimed at grow­ing em­ploy­ment cre­ation, and poverty re­duc­tion.

PART I: POLI­CIES DEAL­ING WITH MACROE­CO­NOMIC IM­BAL­ANCES

This Sec­tion of the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme iden­ti­fies key macro-eco­nomic pro­jec­tions to 2020. It also cov­ers chal­lenges and op­por­tu­ni­ties, and prof­fers strate­gies to ad­dress them un­der the fol­low­ing: Macro-eco­nomic En­vi­ron­ment; Restora­tion of Fiscal Bal­ance; Mo­bil­is­ing Do­mes­tic Sav­ings; Com­pet­i­tive­ness of Exporters.

The econ­omy is pro­jected to grow at around 9 per­cent an­nu­ally in the first four years from 2019, be­fore mod­er­at­ing to sus­tained growth rates of over seven per­cent over the hori­zon of Vision 2030, as high­lighted in the Ta­ble be­low on key macro-eco­nomic pro­jec­tions.

At­tain­ment of the macro-eco­nomic tar­gets as pro­jected above will be the over­rid­ing fo­cus of the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme.

Macro-Eco­nomic En­vi­ron­ment

A sta­ble macro-eco­nomic en­vi­ron­ment, char­ac­terised by fiscal and mon­e­tary dis­ci­pline, as well as a sustainable bal­ance of pay­ments po­si­tion, is crit­i­cal in build­ing in­vestor con­fi­dence. The pre­vail­ing en­vi­ron­ment of macro-eco­nomic im­bal­ances presents con­straints to the rapid eco­nomic de­vel­op­ment of the coun­try, as pub­lic deficits fuel un­sus­tain­able large fiscal bor­row­ing re­quire­ments and money sup­ply growth, in the process con­sum­ing scarce for­eign re­serves and un­der­min­ing cur­rency sta­bil­ity.

Weak­nesses in the macro-eco­nomic sit­u­a­tion have also re­sulted in a low sav­ings rate, high pub­lic debt, and di­lap­i­dated in­fra­struc­ture which is con­tribut­ing to higher do­mes­tic pro­duc­tion costs for busi­ness. Full restora­tion of macro-eco­nomic bal­ance will ne­ces­si­tate a phased ap­proach, span­ning over the short, medium, and longer term.

To be con­tin­ued EDI­TOR, it’s the right of con­sumers to see prices dis­played on goods, food and clothes so that we choose ac­cord­ingly. I think the laws are there to pro­tect con­sumers and stern mea­sures must be taken to those who take laws of the coun­try in the hands.

Busi­ness­peo­ple must be aware there are statu­tory in­stru­ments that can make them be brought to book and pun­ished or fined for not dis­play­ing prices to con­sumers. We want to bud­get for what we pur­chase. Many of the above, if re­porters and law in­spec­tors carry a sur­vey, they will wit­ness this.

In big cloth­ing shops on the rails the price card is writ­ten $35, if one picks the item the clothes will be mixed and some on the rail prices will be found at the till us­ing com­put­ers. Yet each cloth­ing item must have a price on it.

Again the is­sue of retailers hav­ing a three- tier pay­ment pric­ing sys­tem has to be stopped. What’s sur­pris­ing is that busi­ness­peo­ple start to cry if the Govern­ment opens up the out­side world to bring in goods like foods and clothes to com­pete yet it’s them who cause that.

The King Makoni Cle­mence, Mpopoma, Bu­l­awayo.

Fi­nance and Eco­nomic De­vel­op­ment Pro­fes­sor Mthuli NcubeMin­is­ter

Pres­i­dent E D Mnan­gagwa

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