With the above characterizing economic activity in Zimbabwe, the underlying assumptions for recovery are therefore non-existent. In this kind of situation a government which regulates consumer spending and control prices is a wrong government. It is a government which only worsens the situation.
It creates shortages, encourages the alternative market and subsequently exacerbates prices they are trying to control. The government must attend to its expenditure irregularities and provide supply side solutions.
We have also argued that the centre piece of any government policy must be restoration of production. Zanu PF’s failure to create conditions in respect of which the economy is grown and jobs are created will always harm this economy.
We further made the point consistently that the cash crisis, multiple exchange rates and the bullish trend in respect of the prices of the US dollar is a direct result of fiscal mismanagement.
The cost of the dollar is therefore the major driver of inflation. This cannot be corrected through institution of barbaric price controls and threats of revoking retail licenses.
We therefore propose the following solutions.
MDC: Change That Delivers
Jacob Mafume
MDC National Spokesperson
(645 VIEWS)
This post was last modified on October 19, 2018 3:45 pm
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