2014 Zanu-PF Congress: Time to make or break economy

09 Nov, 2014 - 06:11 0 Views

The Sunday Mail

There has been huge interest in the forthcoming Zanu-PF National People’s Congress scheduled for December.

Congress is the supreme policy-making organ of the Party.

The media has been awash with news about this Congress, largely focusing on political simulations and speculations.

As the Congress nears, it is important to look critically at the positives and implications derived from this all-important event held after every five years.

The Zanu-PF constitution clearly provides for the powers and functions of Congress.

It states that congress shall:

Be the supreme policy-making organ of the Party

Elect the President and First Secretary, two Vice Presidents and Second Secretaries and the National Chairman of the Party

Elect members of the Central Committee

Approve the heads and deputies of departments who shall constitute the Politburo

Formulate, pronounce and declare all policies of the Party

Formulate and issue directives, rules and regulations to all organs of the Party

Approve the financial statements of accounts

Be the supreme and ultimate authority for the implementation and supervision of the policies, directives, rules and regulations of the Party

Have the power and authority to amend the Party constitution.

Economic aspirations the

topmost policy issue

As the ruling Party, which directs how Government functions, it is imperative to be objective in tackling current national issues during Congress deliberations in line with the above functions and powers.

The selected leadership is expected to formulate prudent policies that will transform the economy towards eradicating the socio- economic ills plaguing the country.

As logistical preparations advance, those involved should be reminded of the importance of Congress deliberations as these will shape the destiny of a country so desperate for an economic miracle.

The economic aspirations of Zimbabweans should top the list of policy deliberations.

The resolutions should point towards political commitment to addressing the economy which has been affected by Western sanctions, especially under America’s Zidera.

Many are living below the poverty datum line; more and more companies are closing, while others are operating at an average capacity utilisation of 39 percent.

Power outages are the order of the day; water is scarce; there is general infrastructure decay and the liquidity crunch persists.

The economy has been bleeding and therefore requires an emergency remedy that will, hopefully, be delivered through Congress deliberations.

In terms of economic ideology, the Party`s constitution coins it as: “To establish and sustain a socialist society firmly based on our historical, cultural and social experiences and to create conditions for economic independence, prosperity, and equitable distribution of the wealth of the nation in a system of economic organisation and management in which elements of free enterprise, market economy, planned economy and public ownership are combined.”

While embracing this, there are expectations that more effort should be directed at creating an enabling environment for businesses and industries to establish, revive and operate profitably with guaranteed investor protection.

As part of the solutions to the crippling liquidity crunch, it is a matter of urgency that we realign our policies towards attracting foreign direct investment.

Lessons can be borrowed from the Chinese economic revolution where laws were crafted to ensure property rights to investors particularly in special economic zones, an intervention that led to the Chinese economic achievements that are being seen and appreciated globally.

Empowerment versus foreign direct investment

The lifting of European Union sanctions, though not wholesome, and the visit by the British trade delegation should stimulate constructive policy debate and subsequent formulation of a permanent solution to attract international capital.

While the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) prioritises rapid infrastructure development, this should assume a broad-based nature where it cuts across sectors covering both productive and social infrastructure in the areas of energy, roads, railways, airports, ports, water infrastructure in health, education and related areas. Zimbabwe should embrace Chinese strategies for planning, coordination of construction as well as maintenance and rehabilitation of infrastructure.

Zim Asset should carry a vision beyond five years for it to have meaningful impact on the economy.

The Chinese economic revolution started in 1978 and the Chinese are now in pole position in terms of economic growth.

Developments to improve power supply, for instance, are expected to significantly reduce the power deficit by 2018 since the projects are huge, involving a lot of work that takes years to complete.

A graduated and phased approach should allow Zimbabwe to strengthen institutions in advance for widening reforms and strengthening stability fundamentals for economic growth far beyond 2018.

It is incumbent upon Congress to create a national economic vision that will be adopted by any ruling party instead of being governed by political tenure.

Again, policy formulation should prioritise poverty-reduction and building a social net to reduce the ravaging consequences of an economic meltdown on the masses.

In addition to employment-creation, the empowerment agenda should assume a long-term implementation matrix to economically empower masses across all sectors of the economy.

Economic empowerment should become a permanent policy.

Such clarity is critical to ensuring the programme is fully implemented with the aim of achieving broad-based economic growth. Economic empowerment will go a long way towards creating a viable middle class.

The creation of a middle class is critical.

It is this middle class that normally provides a viable market for other products and services, which, in turn, gives a positive multiplier effect on aggregate demand in the economy.

Lessons from the Chinese

Further, due consideration should be accorded to agrarian reforms to consolidate its gains.

The prime movers of agriculture in the Chinese revolution included:

— Land tenure management (where land allocation depends on work effort and capacity to produce, and crafting supporting legislation)

— Technology, mechanisation and modernisation (application of science, technology and mechanisation). Subsidies in the purchase of machinery and incentives in the marketing process to be applied

— Effective institutions of research, education and training (government-sponsored training programmes, support and funding research and development)

— Conducive policy environment for agricultural investment, production, marketing and trade (agricultural insurance, government investment in irrigation, and infrastructure).

This will underpin economic revival given that agriculture is at the core of the mass population.

Jostling for positions among political heavyweights and novices alike should not be done with self-serving ambitions, for self-enrichment, but with the noble objective of bringing solutions that take the country forward.

The leadership should be resolute in dealing with corruption which has become cancerous from the top to the bottom levels of organisations.

The Party and, subsequently, Government should totally embrace international corporate governance standards in their operations to steer Zimbabwe towards an economic revolution.

Political commitment to achieving economic growth was key in Chinese reforms.

Urgent adjustments to our investment laws, with particular emphasis on the Indigenisation Act, should be prioritised to accelerate economic growth.

In addition, labour laws should be realigned to attract foreign direct investment while ensuring local companies achieve international competitiveness and are able to pursue a similar export-orientated investment drive like the Chinese.

This will help us capture global markets and foster economic growth.

Zimbabwe has a small population of 13 million people, while China has over a billion people.

The Chinese aggressively pursued an export orientated growth strategy, something Zanu-PF think tanks need to consider.

By and large, the outcome of Congress will have a huge bearing on the country’s economic destiny.

 

Nyasha Patience Mandeya is the Zanu-PF director of economic affairs

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