Tuesday 16 April 2013

Zimbabwe Economics-Missing Link

Industrialization is evolutionary. Economic models will not help the Zimbabwe economy transition from its current supermarket subsistence state. As shown by the USA, UK, Japan, Germany China and Brazil, heavy duty state support in technological development, on top of state financing of core industry, is needed to seed the development of a reasonable industrial state.

Zimbabwe needs to manufacture. Growing industrial output will:

  • Reduce the 100% dependence on foreign manufactured goods.
  • Improve employment chances for millions who are unemployed.
  • Relieve poverty for 90% of the population currently living in absolute poverty.
  • Help reduce corruption, crime and rampant poverty-induced immorality.
Even Ian Smith protected industrial capacity, in the midst of sanctions. Smith ensured Rhodesia protected its core industry.

Government needs to rebuild industry. Policy, made by government, should support industry. As productive capital graduates through subsistence, cottage industry, infant industry, core industry and finally heavy industry- the invisible hand of government is needed. Government plays its hand at every stage of industrial evolution. So far, government has seen industry devolve from core infant industry to supermarket: sub- subsistence levels.

Lets work smart. The Zimbabwe economy cannot live on piss poor planning. Zimbabwe economics should engender smart strategies that deliver employment for the masses of Zimbabwe. Zim economics should not be hijacked by populist, pseudo-socialist,  mantras that do not deliver industry and employment . No more half-baked models, the Zimbabwe economy should see results.

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