Breaking News

MDC-T's Juice offers little

by Tafadzwa Musarara
11 February 2013 | 3175 Views
After spending three years in government without its own party economic blue print but only deploying its energy towards demonising Zanu-PF's indigenisation policy, MDC-T has exposed its policy dysfunction with the launch of a vacuous economic policy.

The economic blueprint, Jobs, Upliftment, Investment, Capital and the Environment (Juice), authored by Eddie Cross and UK-based consultant Lance Mambondiani, is a poor attempt to duplicate current government economic policies under the guise of new terminology.

The entire document is replete with inaccuracies and outright plagiarism of other current economic blueprints, especially the government's Medium Term Plan (MTP).
 
First and foremost, it is difficult to believe MDC-T's commitment to deliver on its economic policy which is based on investment devoid of government intervention. In a recent piece titled "My Crystal Ball", Cross, said: "The MD-TC would announce a small government – a Cabinet of 20 ministers with 18 ministries.

The President and Cabinet would be sworn in and would immediately begin a complete overhaul of the State administration. Marange diamond fields would be nationalised and all existing operators expelled."

Did I hear nationalisation here?

The entire premise of the blueprint is that of jobs. Tsvangirai makes this very clear in the foreword to the document. It is the be-all and end-all. He argues that what Zimbabweans need are jobs, hence his economic plan is to avail jobs to all Zimbabweans.

It is through jobs that Zimbabweans will be empowered, he argues.

This argument is fundamentally flawed.

The blueprint is anti-indigenisation and empowerment, referring to this programme as looting and asset stripping. It asserts that current empowerment policies are meant to enrich the elite and politically-connected without proffering any evidence to that end.

Current empowerment transactions expose this fallacy and contradict this assertion as there is no evidence that a few elite have benefited for these deals.

It has mainly been management, employee share ownership schemes, community share ownership trusts as well as the National Indigenisation and Economic Empowerment Board (Nieeb) that have been the beneficiaries of these schemes.

There is little or no evidence of capital flight in response to indigenisation of those firms already invested in Zimbabwe.

Indigenisation transactions such as promulgated by ZIMPLATS have been by way of vendor financing, thus offering value to prior investments.

Strangely, one of the objectives of Juice is "restructuring the ownership and control of the economy through a broad-based economic empowerment programme" which is an acknowledgement of the need for indigenous participation in the economy through ownership of the means of production.

But Juice then goes on to claim that this will be achieved through training, supporting SME's, formalisation of the informal sector, job placements and so on.

This is totally absurd as ownership and control can only be achieved through the vehicle of capital.

The MDC-T must realise that local ownership of capital is a global phenomenon irrespective of which country one is in.

One can argue about thresholds but not the principle. Any other careless option will leave countries at the mercy of foreign capital and ultimately foreign political influence.

In the USA, Dubai Ports had won the right to manage huge American ports, but this attracted the ire of locals who felt that they were giving up their sovereignty and security to foreigners. The indigenous people won.

Juice is content on having local Zimbabweans as employees of foreign multinationals with limited participation in ownership.

Juice acknowledges that one of the key drivers of economic growth is increased and sustainable agricultural production.

However, the conduct of the MDC-T in government and the minister of Finance in particular displays a scant regard to this notion.

In 2012, Tendai Biti promised that he would provide for $20 million towards winter wheat farming. To date, no dime has come out of Treasury.

Funding for inputs have been low and erratic and at times reaching the beneficiaries late to be effective.

The policy is very suspect on the land reform beneficiaries and the fate of former white commercial farmers. It does not address the irreversibility of the land reform and future ownership patterns.

Any future agricultural policy in Zimbabwe must focus on how to underpin and consolidate the agrarian reform through land tenure and creating a sustainable agricultural sector through access to funding and extension services.

According to the MDC-T's own research, formal employment peaked at 1,35 million in 1998 from about one million in 1980 under a Zanu-PF government then dropping to just under one million in 2010, close to the 1980 levels.

It acknowledges the massive growth of the informal sector in the last 20 years which accounts for absorption of jobs lost in the formal sector and population differentials between 1980 and 2010.

There hasn't been major movement in formal employment numbers in the 30 years since independence on a net basis. The informal sector has absorbed additional entrants in the employment market.

Juice contains serious inaccuracies in the employment numbers especially in the agricultural sector claiming only 20 000 people were employed in the agricultural sector in 2008 but also asserts that 150 000 were employed in this sector in 2010.

There is no explanation of this sudden leap in numbers.

Any future economic policy by any political party must pay close attention to sustainable job creation through growing the economy and encouraging capital formation by way of cultivating local savings and foreign direct investiment (FDI).

Jobs allow new entrants into the money economy and help to expand the local market.

The party claims that it will create one million jobs between 2013 and 2018 based on an annual economic growth rate of eight percent. The figure is unreal, as it cannot be achieved in such a short space of time whilst the leading Western economies' employment figures are heading south.

This is fuzzy mathematics considering our current GDP numbers.

The numbers become even fuzzier when one considers its projection of targeted FDI of 30 percent of annual GDP. It is difficult to see how these jobs will be created on such a low base and single digit GDP growth numbers unless they are extremely low-paying jobs in agriculture.

This assertion is not backed by the numbers. The numbers don't add up especially considering the high targeted FDI which is not reflected in GDP and the GDP growth rate.

On road infrastructure, it claims that focus will be on the modernisation and dualisation of Beitbridge-Chirundu, Plumtree-Mutare and Harare-Nyamapanda highways.

These projects are already in motion with construction work already at an advanced stage on the Plumtree-Mutare Highway and feasibility studies being finalised on the Beitbridge-Harare Highway as part of the Chirundu corridor.

There is very little in terms of empirical evidence to bolster the policy conclusions.




The Juice document is juicy-dry and cannot give the indigenes the economic syrup required.

------------------------
*Tafadzwa Musarara is the chairperson of Resources Exploitation Watch 


Juice MDC-T


Disclaimer:
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.

Source: dailynews

Are housemaids an evil lot?

Yes
26.94%
No
64.49%
Not sure
8.57%
490

Comments

News Updates

Email:

Latest News

Come back to the BIG TENT Hon W Ncube, Hon T Biti and the whole Team -...

by Prof Richard M Simango | 21 December 2014 | 2604 Views

Central bank monitoring suspicious transactions

by Business Reporter | 21 December 2014 | 2186 Views

We are not mortgaging minerals says Chinamasa

by Staff Reporter | 21 December 2014 | 1048 Views

Cde Dabengwa, how can you not speak against Gugurahundi architectures ...

by Nomazulu Thata | 21 December 2014 | 3565 Views

Pakistan executes four more militants -  Lahore - Pakistan on Sun...

by Staff Reporter | 21 December 2014 | 1134 Views

US to review North Korea terror status - Washington - The United State...

by Staff Reporter | 21 December 2014 | 832 Views

Nine companies prosecuted for selling contaminated fuel

by Staff Reporter | 21 December 2014 | 2148 Views

Mugabe axes seven more ministers - Seven more parliamentarians have be...

by Staff Reporter | 21 December 2014 | 9234 Views

Woman walks in on daughter having sex with boyfriend - A WOMAN from Co...

by Gibson Mhaka | 21 December 2014 | 6245 Views

Man draws out sword in street fight - IMBIBERS at Enkundleni Bottle St...

by Staff Reporter | 21 December 2014 | 2333 Views

This and that with Mal'phosa - Those that fell from Grace - Well it's ...

by Clerk Ndlovu | 21 December 2014 | 2301 Views

Nyabadza Children's Trust Donates Soccer Balls to Future CR7s

by Staff Reporter | 21 December 2014 | 1022 Views

Thieving teen tells court 'everyone' steals - A DARING Silobela teen...

by Staff Reporter | 21 December 2014 | 3468 Views

Man circumcises sons with nail-cutter

by Staff Reporter | 21 December 2014 | 2253 Views

90-year-old 'witch' caught after failing to eat baby - STORIES of wi...

by Nhlalwenhle Ncube | 21 December 2014 | 4505 Views

Why are civil servants treated unequal? - 02:34, 21 Dec - ‪+263 7* *...

by Concerned civil servants | 21 December 2014 | 2838 Views

'Econet opera bundles, fraud at its highest' - Please note that Bulawa...

by Concerned Citizen | 21 December 2014 | 2732 Views

Gushungo ML with GP number plates - Photos

by Staff Reporter | 21 December 2014 | 6636 Views

Warriors 'could have interesting times ahead,' says Khama Billiat - Ma...

by Staff Reporter | 21 December 2014 | 2043 Views

Goche war reports, a pack of lies - THE factional fighting in Zanu PF ...

by Staff Reporter | 21 December 2014 | 4153 Views

Nhema, Buka blocked from greeting Mnangagwa

by Staff Reporter | 21 December 2014 | 4574 Views

US$30 billion economy can be grown in Vic Falls - Mzembi

by Staff Reporter | 21 December 2014 | 1747 Views

Dabengwa refuses to talk about Mnangagwa's role in Gukurahundi

by Staff Reporter | 21 December 2014 | 3124 Views

VP Mnangagwa assassination plot: Forensic detectives called in

by Kuda Bwititi | 21 December 2014 | 2792 Views

Unqualified teachers' future hangs in the balance

by Tinomuda Chakanyuka | 21 December 2014 | 2931 Views

Time for a Revolution for Women in Zimbabwe : No more Delay - Violenc...

by Minenhle Gumede | 21 December 2014 | 1048 Views

'We demand human rights in Matabeleland South' - Prominent Matabelelan...

by Staff Reporter | 21 December 2014 | 1265 Views

'Gold panners' murder soldier, chops body into pieces - A GWERU soldie...

by Munyaradzi Musiiwa | 21 December 2014 | 2490 Views

Gwanda runs dry again

by Staff Reporter | 21 December 2014 | 1262 Views

Entertainment

Visually impaired singer gets early Christmas present

by Staff Reporter | 19 December 2014 | 2098 Views

Tuku fails to secure seat on Air Zimbabwe

by Staff Reporter | 19 December 2014 | 3398 Views

Mafikizolo jets into Zimbabwe today

by Brenda Phiri | 19 December 2014 | 1823 Views

Sony cancels US release of movie about plot to kill North Korean leader

by Staff Reporter | 18 December 2014 | 2159 Views

Designer sale off 2014

by Hunnar Agency | 18 December 2014 | 3288 Views

10 Zim designers to feature in iFashion Fest 2014

by Hunnar Management Agency | 18 December 2014 | 3154 Views

Kunonga releases fourth album, Kwedu - AFRO-JAZZ singer Victor Kunong...

by Staff Reporter | 18 December 2014 | 1077 Views

Ibumba roars into life with Tuku expected to headline the event - THE ...

by Simbarashe Mutizwa | 16 December 2014 | 1515 Views
iBlog

The Nsa Gets An Ok For Telephony Metadata Collection Yet Again

As much as we’d like to forget about the national security agency (nsa) and its mass surveillance program, it seems that there is no distracting ourselves from this unnerving reality.missing from the news for quite some time now, the issue has resu... Read More
SecNews 09 July 2014 ago

Time To Kiss Zimbabwe Goodbye Forever.

By israel dubethings fall apart at zanupf. brother turns against brother, sister betrays sister. the center cannot hold anymore. as the walls of oppression and discrimination collapse, matebeles must make sure that they do not find themselves lost i... Read More
myAfroTube 03 November 2014 ago