We received the following from Francis Bingandadi.
The political stalemate in Zimbabwe arising after the unity agreement between ZANU (PF) and MDC as signed on the 15 of September 2008 has generally been expected to fail to turn around the economic meltdown that has rocked the once bread basket of the Southern African nations and has been described by the Midlands Provincial Chairman and National Chairman for Discipline, for the MDC-Mutambara formation Mr. Laisson Mlambo, as too fragile as it failed to transfer power to the winning party and fell short of what many people wanted in many ways particularly on the land question.
He said that if ZANU (PF) persisted and insisted that they take control of the ministries that naturally should be in the hands of the MDC, it will unfortunately only perpetuate the wait and see attitude that international investors are taking on Zimbabwe and all at the expense of the people of Zimbabwe who have suffered so much, especially after the chaotic land reform programme, when the economy could not take any further knocks and plummeted.
The Zimbabwe has been plagued by negative macro-economic environment characterize by record hyper-inflation index officially estimated around 4 000% but pegged at 2 billion percent for the month of September, 2008, by the Washington based, Cato Institute hovering over percent, high unemployment, mass exodus of skilled experts, civic and socioeconomic failure, little to non foreign direct investment inflows, a badly tainted international image, a general shortage of basic commodities, foreign currency, fuel, power among a host of economic negatives.
The chief cause of Zimbabwe’s hyper-inflation has been due to the Central bank’s propensity to print money causing an unmanaged massive and rapid increase in broad money chasing a few goods and services the economy is now producing.
The Central Bank has despite a plethora of legal tender laws and policy changes and price controls to prevent discounting the value of paper money relative to gold, silver, hard currency, or commodities, has dismally failed to force acceptance of their paper money on the economy as it lacks intrinsic value.
The ordinary people are now paying for practically anything from firewood, meat, rentals, and transport in foreign currency and this has allowed the black market to thrive unabetted.Hyper – inflation in Zimbabwe has generally been a function of the Central Bank printing running every day at full throttle while other macro-economic factors like the general lack of production in Agriculture, manufacturing, mining among other sectors of the economy have also contributed to the catch twenty two scenario.
Mr. Mlambo said that the agreement though it has managed to record a number of tangible progress in bringing the former warring factions together on the discussion table, it is serious danger of collapse if the two warring factions fail to swallow their pride and put the interest of the country at heart and ignore their individual party ideological differences.Mr. Mlambo said that the struggle for control of whatever cabinet post was expected and only further compromises between the two parties would help bring them closer.
Many people in Zimbabwe believe that the agreement was the best thing that has ever happened for the country while a clique that now fears for their future in ZANU (PF), and the government, believe that Mugabe gave up some much power to the two MDC formations while, some people in the MDC believe that their leaders left Mugabe get away with so much power.
Mr. Mlambo said that, “both parties need to create a middle ground on which to trade otherwise the agreement is too fragile and can break soon.”
Developments in South Africa, which saw the removal of the former president Thabo Mbeki from office was a major blow to the unity talks and many observers have noted that Mr. Mbeki can still go on and broker a long lasting deal as was done by the former UN secretary general, Kofi Annan, in Kenya, and the former president of Botswana, Mr. Masire in Burundi.Mr. Mlambo said that the disagreement as what ministry would be taken by what party is understandable and only academic as traditionally ZANU (PF) has been using the different ministries for underhand deals, rigging of elections, abusing people, stealing elections, among the many misdeeds that ZANU (PF) perpetrated in Zimbabwe.
The agreement has tended to skirt the land question as it is an emotive issue only agreeing to set up a land commission to undertake a land audit to determine which land is or is not in use and make appropriate recommendations on the way forward.
“The compromise agreement has serious flows as it failed to address land ownership and will continue to perpetuate the wait and see attitude that serious investor are taking on Zimbabwe.” Said Mr. Mlambo.
He also said that the agreement only made reference to the British obligation to pay for compensation for developments on farms and not for the land, meaning if the British renege, he does not see how the agreement will work bearing mind that for any meaningful developments to take place the agreement should translate into a solution that addresses the land question and allow international capital in to develop agriculture.