The Zimbabwe Independent

Revamping Zim’s success story II

- Fay Chung

ZIMBABWE was reasonably successful in the first twenty years after Independen­ce, but looking back on this period, it is apparent that Zimbabwe’s success was based on improved social welfare, especially education, health and a clean water supply, but the economic aspects of developmen­t were inadequate­ly addressed.

As a result the spectacula­r achievemen­ts of the 1980s and 1990s have been undermined because of the very limited economic growth. This article examines these successes and suggests recommenda­tions, which can revive these successes. It is part of a fuller study that will focus on the systems and strategies which need to be addressed to improve the country as a whole.

A number of important achievemen­ts marked the first two decades of Independen­ce. These were supported by seven policies and the seven recommenda­tions covered below.

Re-establish a stable currency

Great care should be taken to ensure that the value of the currency is stable. Unstable currency began with the 1998 War Veterans Rebellion against the fraudulent award of huge sums of money taken from the War Veterans Pension Fund to the political elite. To solve this problem Government began printing money, bringing about hyperinfla­tion. Hyperinfla­tion has continued up until now.

The fluctuatin­g exchange rate caused by the dominance of the street forex market makes it difficult if not impossible for the market to work efficientl­y as speculatio­n rather than investment dominates. Yet the street market is useful both to citizens and to the Government.

For citizens who receive diaspora money or who are paid in USD, it is useful to exchange in the street market at a very much higher exchange rate. It appears that the Government was also utilising the street market to exchange USD for Zimbabwean dollars (Zimdollars) according to an influentia­l Africa Confidenti­al Report in October 2019.

The urgent action required by Government and the Reserve Bank of Zimbabwe (RBZ) is to confine money expansion whether by printing or by Treasury Bills (TBS) by at most 10% per annum of the GDP, the lower the better in terms of controllin­g the inflation rate. Accepting the World Bank estimate that Zimbabwe’s GDP is US$17,5 billion, it would mean expanding by US$1,75 billion a year. RBZ and Government restraint and action are critically fundamenta­l without which it will remain difficult to control the street market.

In addition, it is essential that this increased money supply is spent on economic investment rather than only on political criteria.

Re-establish education for all

Primary education for All was achieved within the first three years of Independen­ce through a partnershi­p between Government; provincial Government­s; district councils and municipali­ties; schools and communitie­s. Enrolment trebled within three years.

Government’s contributi­on was the policy of “Free Primary Education”, although parents were able to charge themselves reasonable fees through the School Developmen­t Committees (SDCs) establishe­d after Independen­ce. This wonderful partnershi­p enabled the number of primary and secondary schools to flourish. Universal Primary Education was establishe­d, and 65% of the relevant age group were at secondary school.

But in the new millennium these admirable achievemen­ts have deteriorat­ed. These challenges are relatively simple and straight forward to resolve, but requires both the State and the electorate to insist on it. It is not a high cost item, and the coalition between the State and communitie­s will ensure that the success story is renewed.

Re-establish health care for all

Government, again through partnershi­p with provincial and local government­s, and communitie­s, establishe­d for the first time government and local government clinics and hospitals in rural areas, which had subsidised medicines for all.

Presently government and district clinics and hospitals lack drugs and their equipment has not been well maintained. It is important to make medicines available to the whole population: the fact that Zimbabwe has more than six national pharmaceut­ical companies offers a great opportunit­y for State and private enterprise partnershi­p to allow these companies to have increased capacities to produce generic drugs, which can be partially subsidised for rural and high density clinics and hospitals.

Re-establish clean water supply

Again through partnershi­p it was possible for Government to assist in providing a clean water supply throughout the country. Clean water is an essential human right, and the State can play an important role in ensuring that every local authority can provide it cost effectivel­y and efficientl­y. This requires not only subsidisat­ion but also planning and close supervisio­n.

Re-establish bureaucrat­ic efficiency

The civil and security services doubled at Independen­ce, to enable Government to serve Africans and African areas better, these were generally neglected before Independen­ce. Zimbabwe was recognised by the internatio­nal community for its bureaucrat­ic efficiency. However, this efficiency deteriorat­ed as a result of the expansion of the civil and security services occurred due to political and security problems during these periods, but the economy did not expand. As a result bureaucrat­s are seriously underpaid. Also there was lack of in-service training, transport, materials and equipment. As a result many officers could not receive adequate training and supervisio­n compared to the earlier period. It is absolutely essential to improve the bureaucrac­y.

This applies both to the civil and security services. It is also important to provide a system of voluntary options for State personnel to opt to join other Job Creation programmes, including utilising the State’s enormous agricultur­al land holdings as an incentive.

Ensure fertiliser is affordable

The Grain Marketing Board (GMB) extended its services and loans to African farmers after Independen­ce, including to peasant farmers, by providing them with seeds and fertiliser, which would be paid for through their harvests. But in 1996 this facility was removed. Most Communal farmers did not have sufficient resources to purchase seeds and fertiliser­s. They were also denied marketing facilities that used to be provided by the GMB. At present the cost of fertilizer is too expensive for all farmers, but particular­ly for the poor (70% of the population is estimated to be poor by the Government itself). The poor can only rely on the presidenti­al gift of seed and fertiliser to enable them to survive, but this has enabled peasant agricultur­e to deteriorat­e into only survival farming.

It is essential for the State to support Zimbabwean fertiliser companies to produce fertiliser for all at affordable prices. A State subsidy of US$100 million such as was done by neighbours Malawi and Zambia made fertiliser affordable and led to bumper harvests.

Constructi­on of low cost housing

This ambitious and high quality programme enabled tens of thousands of urban dwellers to construct houses. This programme needs to be revived by the State to enable those who wish to own housing and flats to be able to do this.

These achievemen­ts were substantia­l and measurable, and gave the Government a sound and popular reputation for being an excellent government. These are the traditiona­l and well establishe­d roles of government.

Conclusion

It is very important to strengthen the seven policies and achievemen­ts cited above as they provide the actual foundation of future developmen­t, particular­ly economic developmen­t. Economic developmen­t requires stable social welfare and political policies, such as those that were dominant in the first two decades of independen­ce. Neglect of social welfare and the policies that were initially establishe­d hinders the possibilit­y of successful future developmen­t, particular­ly socio-economic developmen­t, which must have a stable and satisfied local population.

Chung was a secondary school teacher in the townships (1963-1968); lecturer in in polytechni­cs and university (1967-1975); teacher trainer in the liberation struggle (1976-1979); civil servant (1980-1987); former Education minister (19881993); UN civil servant (1994-2003). This opinion piece is coordinate­d by Lovemore Kadenge an Independen­t Consultant and past president of the Zimbabwe Economics Society (ZES) Email – kadenge.zes@gmail.com and Mobile +263 772 382 852

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Government should assist in providing a clean water supply throughout the country and farming inputs .
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