Missing link

General Park-Economic Leader

Robert Mugabe has met his match. Politically he has a knack to survive. Zimbabwe right now needs someone to direct and lead the economy into the modern age. After over three decades, Robert Mugabe has failed to deliver on every economic promise.

Zimbabwe has a lot of academically trained  people. This is a hindrance, as it lacks practical leadership in government and industry. South Korea got out of its economic hell hole, through practical men like General Park who fought through economic challenge. General Park did not need MBA's and degrees to deliver. What drove him was purpose and a deep desire to get his country out of poverty.

Zimbabwe has to be honest. Propaganda peddled by The Herald  ensures failed administrators stay in control of a failed economic system. Tightly controlling the economy, as government is doing now, but driving it into permanent recession is the ultimate form of misgovernance. Without a free press to effectively educate  'educated' Zimbabweans, this country remains in crisis. The Herald will not call out the missing link to Zimbabwe's development. Right now, Zimbabwe calls out for economic leadership.

Dollar Effects

The US Dollar has come with its own problems.

Its scarcity, in Zimbabwe, is creating serious funding challenges.

Banks, firms and households are in the midst of a liquidity crisis.

The US Dollar resolved the inflation crisis which was facillitated by poor economic management.

However, dollarisation has not resolved the issue of poor economic management.

The house of Zimbabwe is still in disorder.

With the dollar further weakening export competitiveness, and with foriegn investors, plus donors shunning Zimbabwe; only resolving the economic management crisis and returning the Zim dollar can help Zimbabwe recover.

Speaking to fellow Zimbabweans yesterday, I realised people assume the problems of Zimbabwe's economy will magically resolve themselves.

This is wishful thinking for without  action Zimbabwe's problems are only getting worse.

Factories continue to shut down and our 'leadership' lacks the mettle to get rid of the rot.

Bills, Bills, Bills

You need 'Jobs' to pay bills. Steve Jobs,  created wealth and employment through Apple. US industries like; banks,the car sector, IT and armaments  show when government supports  industry, the jobs will follow. In all successful countries, government support is essential for job creation. To realize the talent of a Steve Jobs, innovation needs to flow through unrestricted.

Government support is key. Entrepreneur industrialists including Steve Jobs, Dale Carnegie and Harold Ford, could not create wealth without the  environment favoring wealth creation. Conducive environs ensure macro-economic stability, rule of law and monetary order. Such environments encourage genius. Talented individuals are not state persecuted ,but encouraged and motivated through policy.

Government can destroy enterprise.In Zimbabwe, our own smart ones are hounded by the government. Mutumwa Mawere, Strive Masiyiwa, Nigel Chanakira...the list is endless, were, and still are  deliberately hindered by a corrupt state. Can you imagine Bill Gates in a place like modern Zimbabwe?- he could not have made a $100 000 , given the corruption & bureaucracy in our country. The greedy politician is destroying Zimbabwe's potential. As talent is destroyed the country cannot pay its bills.

Jobs, Jobs,Jobs

 Zimbabwe economics Image From Bulawayo24.com

Over 10 000 graduates are capped by President Mugabe every year.

Worse than Shakespearean tragedy, these graduands have no chance of securing formal employment. To be self employed or full time unemployed that is the question.

Unemployment in Zimbabwe is over 75%; without formal experience and opportunity, these 10 000 will be stuck in the inflationary increasing poverty stricken.

I did not get capped by President Mugabe. This for me is a badge of honor, given I could see the economy was headed for colossal failure.Seeing  thousands cheering for cemented policy failure, at graduation ceremonies, reminds me- those who abuse their power and the abused are just as bad as each other. When the oppressed cheer their oppressor, you fear for the country's destiny.

Its all about jobs.Strive Masiyiwa, Zimbabwe's technology mogul, declares job creation is the main indicator of political effectiveness. Mugabe and the current leadership have failed to create real jobs, since 1980.

 The false 'socialist' Zimbabwean economy of the 1980s created 'jobs', by inflating the size of the civil sector. This unsustainable process precipitated macro-economic instability. Mugabe and associates should have encouraged growth in private industry, not nationalization, aka indigenization,which  induces rapid decline of all industrial sectors.

 The Zimbabwe theater continues with a recycling of policies that diminish the country's potential-let all the graduands get capped and keep the cheer up for that!

Degrees In Incompetence

The Stae is in denial.'Incompetence the problem,not ....sanctions,' by Samson Hamandishe, on newzimbabwe.com, offers a clear eyed view on Zimbabwe's sanction situation.

Samson Hamandishe highlights the heavy sanctions imposed on Cuba, Venezuela and Iran that have seen these countrys generate economic growth and relative stability. This is in stark contrast to Zimbabwe's continual decline since 1980.

Rhodesia(pre-independent Zimbabwe) was sanctioned and grew its industry. Even before sanctions, between 1980-1989, Zimbabwe's industry was rapidly declining. Sanctions cannot be blamed for this continual de-industrialisation, the cause of decline is poor policy and incompetent policy implementation.

Blame Games

Zanu PF has conceded defeat, already, with regard to employment creation. Since 1980, unemployment (in the formal sector) has crept up from 7% to 95% today. At election time, Zanu PF  promised to create 2 million jobs in the next five years. Zanu PF has now declared these jobs will not be forthcoming as the result of sanctions.

Ian Smith governed under international sanction and still created jobs. This was achieved by preserving industry. Since independence, Zanu PF has commandeered the destruction of industry. Year after year has brought one excuse after another.

Year after year, lofty economic blueprints are presented to no avail. Each economic plan and blueprint brings with it further economic decline. Before blueprints are implemented, Zanu PF is ready to blame this or that for repeated failures. About time the revolutionary party took some responsibility and delivered at least some semblance of democracy, thus allowing Zimbabweans the opportunity to compete and prosper.

Bread Alone

People shun religious concepts. In the beginning of modern classical economic theory, morality was the foundation of economic edict. Economics and morality are two sides of the same coin. Economics came from the study of moral economy.

Here in Zimbabwe corruption rules. Being corrupt, and or corrupted, is indicative of immorality. The indispensable correlation between economy and moral state works both ways. Morality facilitates honesty in government and business, inducing a better economy.

You cannot live on bread alone. The economy cannot function well with just farms, machines, workers, factories and inputs. Human character defines the nature of outputs. Criminal tendencies in state and wider society diminish wealth created.

Morality has infinite degrees. Immorality also has its different levels. When the politician, and or businessman, sends stolen/swindled money abroad the economy contracts. This is the worst sort of corruption as it destroys jobs and future productivity. A lesser corrupt individual might keep money within and use it for productive purposes, this is not as bad. Money can be sent abroad through tax havens or the purchase of expensive imported luxury items. At another degree; when proceeds of corruption fuel speculation in financial assets, and or property, this is worse than using proceeds to create jobs and a sustainable economy.