Gokwe-Chireya legislator Tonderayi Moyo says Zimbabwe should aim for economic development and not just economic growth as the two are completely different.
He said this during his contribution to the debate in Parliament on domestic resource mobilisation to promote economic recovery in Zimbabwe.
“There are some of us who believe that economic growth is the same as economic development. Where effective domestic resource mobilisation is undertaken, it will lead to both domestic growth and development,” he said.
“In most of the African countries that are developing, I will give an example of South Africa; there is economic growth but there is no economic development. What do I mean by that? The economy is said to be growing when we consider the amount of industrialisation and urbanisation taking place then we can say there is economic growth. In terms of economic development what happens to the generality of the masses in a given country where effective domestic mobilisation is done, the amount of resource mobilisation will culminate in poverty eradication. That is pivotal in terms of African development.”
Moyo said even when calling for foreign direct investment, Zimbabwe must go for companies that will promote development of the country and its people.
“We do not want those multinational corporations, conglomerates and cartels who just come here, get all the resources in their raw state and then they are exported and what we get are accidental benefits such as roads which are constructed by those multinational corporations. Those roads will not lead to economic growth but will be used as a way of taking away our resources in their raw state,” he said.
Full contribution:
HON. T. MOYO: Thank you Mr. Speaker Sir for recognising me. I would like to thank Hon. Dr. Khupe for moving the motion supported by Hon. Gabbuza.
First and foremost, we need to distinguish between economic development and economic growth. These are two different things. There are some of us who believe that economic growth is the same as economic development. Where effective domestic resource mobilisation is undertaken, it will lead to both domestic growth and development. In most of the African countries that are developing, I will give an example of South Africa; there is economic growth but there is no economic development. What do I mean by that? The economy is said to be growing when we consider the amount of industrialisation and urbanisation taking place then we can say there is economic growth. In terms of economic development what happens to the generality of the masses in a given country where effective domestic mobilisation is done, the amount of resource mobilisation will culminate in poverty eradication. That is pivotal in terms of African development.
I have appreciated the works Raul Felix Jingwera Valera who wrote a book entitled Strengthening Domestic Resource Mobilisation Moving From Theory to Practice in Low And Middle Income Countries. If domestic resource mobilisation is done, the ordinary person will appreciate the beauty of economic development. When we say we need direct foreign investment as a way of appreciating domestic or economic development, we want those companies which will contribute to economic development. We must desist and that is why the Government of Zimbabwe in terms of NDS1 has said that there is need for value addition and beneficiation. We do not want those multinational corporations, conglomerates and cartels who just come here, get all the resources in their raw state and then they are exported and what we get are accidental benefits such as roads which are constructed by those multinational corporations. Those roads will not lead to economic growth but will be used as a way of taking away our resources in their raw state.
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