The Sunday Mail
One would expect that the growth realised during the GNU era has translated into enhanced quality of life for the motherland’s citizenry.
Zimbabwe’s economy has been growing dynamically since 2009. We actually registered double-digit growth between 2010 and 2012.
Cumulatively, our economy grew by 40,7 percent, during the life of the Government of National Unity (GNU) between 2009 and 2013, translating to an average annual growth rate of about 8 percent. The growth has been above sub-Saharan Africa and the world’s average growth rates.
One would expect that the growth realised during the GNU era has translated into enhanced quality of life for the motherland’s citizenry. However, the consumer basket has actually been rising sharply during the same period, from levels as low as $427 in April 2009 to $571 in April 2013, representing an increase of 25 percent in the cost of living. Wages also have remained subdued for those in employment and for the generality of the populace who are already living below the consumer basket. Due to this increase, many people are not able to afford basic goods, resulting in their real consumption levels falling. This explains why aggregate demand has been also falling, from 13 percent in 2012 to 6 percent in 2013.
Since we are now in deflation, it suggests that it has fallen further. Some of the basics that people are now failing to afford, such as food, basic education and healthcare, are actually rights enshrined in the constitution that the state should freely provide or make easily accessible. Despite our economy having grown dynamically over the past half a decade, this picture indicates that people’s economic conditions have actually worsened.
Is the growth model that has characterised Zimbabwe since 2009 an ideal one for Zimbabwe?
Zimbabwe’s growth model in the past half-decade has been impressive and dynamic in quantitative terms but requires us to seriously pay attention to the following qualitative aspects, with a view to foster growth that comes with sustainable human development, so as to expand people’s choices by enabling them to enjoy long, healthy and creative lives:
Jobless growth
When growth takes place without expanding employment opportunities, it becomes jobless growth. When the number of people who were formally employed in 1980 is more than the number of people employed now, it tells us that we have not expanded employment opportunities.
Formal unemployment has actually risen to levels as high as 80 percent, with formal sector employment falling from the 1998 peak of 1,4 million to about 500 000 as of now. Growth that is not people-centred and pro-jobs is futile. There is need for us to carefully draw the line between capital and labour, to safeguard jobs for all. Section 14(2) of the constitution states that “at all times the State and all institutions and agencies of Government at every level must ensure that appropriate and adequate measures are undertaken to create employment for all Zimbabweans.”
Ruthless growth
This is growth that is associated with increasing inequality and poverty. The Poverty and Poverty Datum Analysis in Zimbabwe, which was conducted in 2012 by Zimstat, has established appalling dynamics which point to the fact that we went through ruthless growth during the GNU era.
The study established that our Gini coefficient in 2012 was “within the range of countries considered to be highly unequal” and that the majority of the population is living in poverty. The Gini coefficient provides an indication of the level at which income is equally or unequally distributed throughout a population. At 0,423, Zimstat said that our Gini coefficient shows “relative inequality in well being.” A Gini coefficient of 1 is an indication of complete income inequality, with one person having all the income, while a Gini coefficient of zero is indicative of complete equality with everybody earning an equal income.
The current initiatives by Government to fight corruption and corporate malpractices such as “salarygate” scandal are steps in the right direction to ensure that we bring growth that comes with equality.
There is need for us to foster equality in our growth, and get rid of the ruthless growth stance which characterised the GNU era.
At the recently held IMF-Africa conference, in Mozambique, under the theme: Africa Rising – Building to the future, the IMF managing director was on record saying: “the tide of growth has not lifted all boats… if the global crisis has taught us anything, it is the importance of making the benefits of growth more broadly shared. When everyone benefits, growth is more durable.”
Rootless growth
This is growth that also withers cultural identity. We seem to be fast losing our sense of identity, due to our high fetish for imports – where some are even importing things like mineral water, foreign traditional wear, not to mention foreign music. Our huge import bill of $7 billion has a significant share of things that we can locally make and are locally and cheaply available.
Futureless growth
When growth is characterised by the squandering of resources needed by our future generation it becomes futureless growth.
We can squander them in the way we use them or by giving them away to foreigners. This is why the recent move by Government to ensure that locals own 100 percent of our natural resources is commendable.
We must endeavour to meet the needs of our present generation without compromising the ability of future generations to meet their own needs. We cannot borrow from the future knowing that we won’t be able to repay.
Sustainable growth model needed
Economic growth in and of itself is futile if it does not give highest priority to poverty reduction, productive employment and social integration. Growth needs to be accompanied by an expansion of people’s choices and enabling them to enjoy long, healthy and creative lives.
Unfortunately, Zimbabwe’s growth model during the GNU era has failed to capture these important aspects of sustainable human development. Zimbabwe now needs to remodel its economic growth model and put the people at the centre of growth. It is meaningless to pride ourselves of double digit growth when the generality of the citizenry are in poverty.
We need to start re-working on our priorities and ask ourselves how we can foster growth that is pro-poor and pro-jobs.
Our country should seriously start thinking about weaving economic growth together with sustainable human development, as we seek to achieve our constitutional aspiration of establishing a “sustainable, just, free, and democratic society in which people enjoy prosperous, happy and fulfilling lives.”
