The Sunday Mail
An institution can be defined as an organisation, establishment, foundation or society specifically devoted to promote a particular cause or programme, especially one of a public, educational, or charitable character.
Such establishments, particularly those moulded by the State to discharge a particular mandate, become the pillars of society.
This is precisely the reason why some societies, in their wisdom, have deliberately chosen to have institutions that advance the aspirations of the State.
The Anti-Corruption Commission is one such creature.
To a large extent, the effectiveness of these institutions normally determine the success or otherwise of states.
It is generally argued that the stronger the organisation, the stronger the state and vice versa.
Scholars often draw parallels between North Korea and South Korea to measure how institutions can help to shape the health of the nation.
These two countries speak the same language and they also have the same culture.
However, the difference between the economies is not just distinct but extreme.
North Korea’s GDP per capita was pegged at US$1 800 in 2013, while South Korea’s stood at US$33 200. According to Index mundi, an international data portal that gathers facts and statistics from multiple sources, North Korea is regarded as one of the world’s most centrally directed and least open economies.
Industrial capital stock is nearly beyond repair as a result of years of underinvestment, shortages of spare parts, and poor maintenance and sanctions.
Large-scale military spending, which is mainly driven by paranoia of threats from the US and her allies, draws off resources needed for investment and civilian consumption.
Conversely, South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialised economy.
However, in the 1960s, its GDP per capita was comparable to some poor countries in Africa and Asia.
In 2004, South Korea joined the trillion-dollar club and is currently the world’s 12th largest economy.
Its success story was mainly build on a closely cultivated business culture of strengthening ties and import restrictions.
Similarly, the difference between municipal authorities in Zimbabwe and South Africa is quite distinct.
The roads and lighting in SA cities is relatively better than what is found in Zimbabwe. This can be traced to manner through which the local authorities are managed.
Whilst most revenues collected by South African local authorities are channelled back to infrastructure development, the revenues collected in Zimbabwe are channelled towards salaries.
Therefore, there is no legroom for capital expenditure.
But it is an established fact that a huge chunk of levies that are generated from ratepayers must be directed towards service provision.
If local government strictly adheres to such strictures, the situation would have been different.
It is encouraging that central Government is trying to push local Government to adopt basic tenets of good administration.
Building strong institutions will go a long way in ensures that some of the reforms are both far-reaching and enduring.
It is the same when it comes to reining-in corruption.
All corruption cases have one thing in common – greed.
Zimbabwe has so much wealth that is can be easily transformed into a world class economy.
There is a constituency that often argues that the efficacy of commissions and institutions that are built specifically to curb corruption is limited by corrupt individuals who are perceived to be stronger than the institutions.
It is an anomaly to have individuals who are stronger than institutions and seemingly above the law. At all cost, Government has to invest every effort to ensure that its institutions are strong.
Daron Acemoglue and James A Robinson in “Why Nations Fail” argue that many officials in Africa occupy bureaucratic positions less to perform public service than to acquire personal wealth and status.
The gap between the rich and the poor is worryingly huge in Africa.
While some top executives of parastatals drive expensive cars, the continued decay of the institutions they serve is rather revealing.
It is time to focus on rebuilding our key institutions and align them to international best practice in order to improve the country’s economic fortunes. There was a time when entities such as the NRZ, Zupco and CSC were well-managed.
However, the trying times that the country went through exposed some weaknesses that were inherent in these entities.
It became clear that there has to be a framework of corporate governance that limits individual discretion and maximises the interests of the State. It is therefore encouraging that a Bill that seeks to give legal effect to the basic tenets of corporate governance will soon be brought before Parliament.
Our institutions need to be seriously safeguarded as they have the potential to re-launch the economy.
Honesty and integrity will take the country far.
It is apparent from Government’s recent actions that it recognises the importance of State institutions and parastatals, but what only remains is for reforms to be forcefully implemented.
Taurai Changwa is an articled accountant with vast experience in tax, accounting, audit and corporate governance. He is MD of SAFIC Consultancy and writes in his personal capacity. Feedback: [email protected], Facebook page SAFIC Consultancy, and Whatsapp 0772374784
