Fixing Zimbabwe’s ‘fantasy economics’
The revitalisation of the Southern African country’s economy requires some fundamental policy changes
From time to time a few countries carry out what is in effect economic suicide. Four things destroy wealth in society — conflict, ideology, corruption and bad economic policy. Examples in recent history are many but notable ones would include Cuba, the Soviet Union and its European eastern bloc, pre-reform China, Lebanon, Zimbabwe, Syria and, at this very moment, Venezuela. What should not have to happen often does as states abuse of their monopolistic hold on power — all the more common in a dictatorship than in a democracy where the descent can be arrested. Partly due to institutional pushback, partly due to factionalism in the ANC ruling party, SA’s descent was stopped in December. The damage inflicted by the Zanu-PF dominated state has been far more severe in neighbouring Zimbabwe. Politically conspired wanton destruction of wealth has impoverished the vast majority of Zimbabwe’s citizens. This is the tragedy left by the Mugabe administration — the squandered resources and vast ...
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