Breaking News

Zanu-PF's economic policy record 'poor': US think tank

by Staff reporter
20 August 2019 | 372 Views
UNITED States research arm, the Congressional Research Service (CRS), has condemned the Zanu-PF-led government's economic policy record as "poor".

The CRS is a public policy research arm of the United States congress and works primarily and directly for members of congress, its committees and staff on a confidential, non-partisan basis.

"(Zimbabwe President Emmerson) Mnangagwa has prioritised efforts to rescue the badly ailing economy, but Zanu-PF's economic policy record—which has featured land seizures and abrupt policy shifts—is poor. Zanu-PF oversaw a 66% contraction of the economy from 2000 to 2008, featuring hyperinflation that hit an annual rate of 471 billion percent in September 2008," a recent CRS report titled Zimbabwe: A continuing crisis, read.

"The economy recovered rapidly under then Finance minister Tendai Biti of the MDC during a power-sharing government (2009-2013). Biti ended the use of the Zimdollar and replaced it with a system in which multiple foreign currencies were legal, but in which the United States dollar predominated."

Currently, however, Zimbabwe's economy is suffering from a plethora of challenges.

These include poor infrastructure, regulatory weaknesses, poorly managed State-owned enterprises, corruption, a poor investment climate, and a drought that has led to frequent power cuts.

It also includes eroding wages from a devaluing local currency, low consumer spending, high unemployment, and rising cost of living.

In that regard, the International Monetary Fund projects the economy to contract by 5,2% in 2019, while government places it at 2,1%.

"A key factor in the economic crisis has been an acute lack of cash caused by US dollar shortages. In 2016, to increase cash available for market activity, the central bank created a local unit of exchange called the ‘bond note'. The bank also has promoted the use of digital dollar bank credits," part of the report read.




"Both bond notes and bank credits were officially equal to the dollar, but the market did not treat them as such. Over time, sellers charged more for purchases made with bond notes and bank credits than for those made with US dollars. This led to inflation, as a lack of US dollars forced people to use increasingly less valuable bond notes and bank credits."

Government responded to this by merging bond notes and dollar bank credits into a single new currency, the "RTGS dollar" in February and allowed its exchange rate to float, part of the report read.

However, the same problems that had afflicted bond notes and bank credits also affected the RTGS dollar.

Its value rapidly plunged relative to the United States dollar, goods shortages worsened, and prices soared with annual inflation of nearly 176% as at the end of June.

To counter inflation and the RTGS dollar's persistent slide, the government ended the multi-currency system in late June 2019; it renamed the RTGS dollar the "Zimdollar" and made it the sole legal tender.

"This change has raised fears of a return to hyperinflation—and may also be unlikely to address other factors underlying the economic crisis. These include low production due to the closure of many firms in recent years, which has shrunk the supply of goods and increased already high unemployment rates. (Many people now make a living in the informal sector, which may now employ more than 90% of the labour force)," part of the report read.

Mnangagwa has been on record as stating that it will take time to address the deepening economic crisis which Finance minister Mthuli Ncube says is being done through austerity measures and fiscal consolidation.

However, economists have warned these measures are impoverishing Zimbabweans more.

Zanu-PF US Economy

Source: newsday

Comments

Latest News

Mugabe body saga reveals Zanu-PF witchcraft beliefs

by Staff Reporter | 22 September 2019 | 1 Views

Magombeyi: Abduction mystery deepens

by Staff reporter | 22 September 2019 | 1 Views

Mnangagwa swoops on ally, nephew as Zimdollar plummets - President Em...

by Staff reporter | 22 September 2019 | 1 Views

Zimbabwe's cost of living skyrockets

by Staff reporte | 22 September 2019 | 1 Views

Mtukudzi's secrets revealed - The late jazz icon Oliver Mtukudzi had p...

by Staff reporter | 22 September 2019 | 1 Views

UN says Zimbabweans being targeted in South Africa - Zimbabweans are a...

by Staff reporter | 22 September 2019 | 1 Views

Fresh scandal brews at NSSA - A fresh scandal is brewing at the Nation...

by Staff reporter | 22 September 2019 | 1 Views

'Agriculture will be Zimbabwe's trump card' - Zimbabwe must use the ag...

by Staff reporter | 22 September 2019 | 1 Views

Zimbabwe diamond production plummets - Zimbabwe's diamond production d...

by Staff reporter | 22 September 2019 | 1 Views

Mnangagwa to protect Grace Mugabe's business empire - FORMER First Lad...

by Staff reporter | 22 September 2019 | 1 Views

Remembering Dr Mzee: Soul of the nation - CDE SIMON Muzenda, who had h...

by Staff reporter | 22 September 2019 | 1 Views

Bulawayp parking tender saga continues - A TENDER for the installation...

by Staff reporter | 22 September 2019 | 1 Views

Rampant price increases must end, says Mnangagwa - I ADDRESS you this ...

by Emmerson Mnangagwa | 22 September 2019 | 1 Views

Who will pay for Bosso's expatriate coach, asks Tshinga Dube - HIGHLAN...

by Staff reporter | 22 September 2019 | 1 Views

Warriors face Lesotho in Chan qualifier - AFTER sobering up from what ...

by Staff reporter | 22 September 2019 | 1 Views

'We will not switch off Kariba' - Water levels in Kariba Dam have drop...

by Staff reporter | 22 September 2019 | 1 Views

Mugabe's life crystallises anti-hegemony fight - It is with sadness th...

by Dr Obert Mpofu | 22 September 2019 | 1 Views

Mugabe family solely in charge of funeral

by Staff reporter | 22 September 2019 | 1 Views

'Prove abduction or go to jail'

by Staff reporter | 22 September 2019 | 1 Views

Zimbabwe to ratify trade pact with Brexit threatened UK - Zimbabwe wil...

by Staff reporter | 22 September 2019 | 1 Views

Whodunnit? And Why? - Two of the country's dumbest and dummest crimina...

by Bishop Lazi | 22 September 2019 | 1 Views

Mnangagwa urges farmers to plant early - Farmers should work hard duri...

by Staff reporter | 22 September 2019 | 1 Views

Unwriting Mugabe's white narrative - They thought Mugabe was their poo...

by Ranga Mataire | 22 September 2019 | 1 Views

The truth about the 'abductions' - In a predictable fashion typical of...

by Staff reporter | 22 September 2019 | 1 Views

Sadc stands with Zimbabwe at UN - Sadc leaders are expected to use the...

by Staff reporter | 22 September 2019 | 1 Views

Mnangagwa arrives in New York for global indaba - President Mnangagwa ...

by Staff reporter | 22 September 2019 | 1 Views

Zanu-PF in landslide Zaka East election victory - Zanu-PF has retained...

by Staff reporter | 22 September 2019 | 1 Views

Remembering Robert Mugabe; A personal encounter

by Josiah Mucharowana | 22 September 2019 | 1 Views

BCC parking tender saga continues

by Patrick Guramatunhu | 22 September 2019 | 1 Views

What good is 95% literacy without common sense to stop Mugabe madness ...

by Patrick Guramatunhu | 22 September 2019 | 1 Views

Entertainment

'Majaivana is not my real father!'

by Staff Reporter | 22 September 2019 | 1 Views

Janet Manyowa arrives ahead of Friends in Christ gospel extravaganza

by Tidi Kwidini | 19 September 2019 | 820 Views

Hip-hop top 10 spansers

by Staff Writer | 12 September 2019 | 948 Views

Victoria Falls cancels Babes Wodumo gig over xenophobia

by Mandla Ndlovu | 12 September 2019 | 1619 Views

Harare Wellness Festival a huge success

by Mandla Ndlovu | 09 September 2019 | 667 Views

BREAKING: Dr Malinga cancels Skyz Metro FM gig over xenophobia

by Mandla Ndlovu | 05 September 2019 | 1887 Views

Mlindo the Vocalist fears xenophobic attacks in Zimbabwe

by Mandla Ndlovu | 04 September 2019 | 7943 Views

Green dupes Bindura fans - AFRO FUSION musician Carlos Green aka "vaku...

by Simbarashe Sithole | 01 September 2019 | 830 Views
iBlog

Five Reliable Outlook Pst File Repair Tools

Outlook pst files can become corrupted -- and when that happens, work grinds to a halt. if your organization relies on outlook, one of these tools could save the day. outlook is the industry standard groupware tool. let's take a look at five that can... Read More
ITnews 04 May 2015 ago

Tb Joshua Worst Enemy Angelique Tonge Exposed

About two years ago, we came out emphatically about those behind the t.b joshua watch. many were those who thought we were framing innocent people up or on a witch hunt. some events have vindicated us and the cat is out of the bag. it is said that no... Read More
pointblank 01 May 2015 ago