Tuesday, May 31, 2005

Dear Mr. President: Clean up then what?

For the past two weeks, the main story out of Zimbabwe's has been that of the government's cruel assault on informals. Since you're so zealous about protecting the wellbeing of your citizens, what I want to know Mr. President is now what?

What is your government going to do to provide for all these people whose means of income you've now plugged. The country already had a staggering 80% unemployment , and the economy has alreadybeen shrinking when every other economy in the region has been growing. Instead of protecting the resourceful genius of the Zimbabwean people, you've invited your Chinese friends and they have overrun our markets with their cheap wares.

What happened to the goals of that led to the creation of the Small Enterprise Development Corperation? You have no welfare net to help people get back on their feet. What do you want the ordinary Zimbabwe to tell his children tonight when gets home with nothing to eat because there's no food on shelves of OK and TM supermarkets?

You've said "inflation is Zimbabwe's enemy number one," what have you done policywise to allow Gideon Gono, the reserve bank govenor, lattitude to curb growth of money supply? Might I remind you that it is your decision to print out money to pay "war vets" and your spending spree in the DRC (which has yielded nothing) that increased speculative money that put inflationary pressures on the economy in the run up to black Friday in 1999.

If you think by forcing the "legal" market on the people it will magically whip itself into shape, you are mistaken. Even there on the formal market, prices are increasing. Price increases will accelerate inflation Mr. President. The informals provide the most efficient pricing structure in our country Mr. President. By frustrating the efforts of our innovators (the informals) to keep the prices of essentials reachable you're not helping the inflation problem.

Food, water, employment, and now our patience are running out. Now what Mr. President.
  • << Home