Category: Zimbabwe

A value perspective of price and currency stability in Zimbabwe

Valentine GuruuswaLeave a comment

In his , Zimbabwe鈥檚 Finance and Economic Development Minister, Hon. Prof. Mthuli Ncube identified rising inflation and currency depreciation as the major challenges requiring 鈥渢he support of all stakeholders and citizens鈥�.  Zimbabwe is failing to ward off persistent inflation. According to Ncube鈥檚 mid-term budget report, headline inflation increased from 60.7% in January to 191.6% in June 2022.

In this post, I will argue that whilst price and the exchange rate have some importance, preoccupation with them can constrain economic development. I start off by giving a brief background of inflation in Zimbabwe as well as inflation targeting policies, before arguing that sheepishly pursuing currency and price stability equates to commodity fetishism. I then look at the real beneficiaries of price and currency stabilisation policies. Finally, I attempt to demystify value and price in Zimbabwe鈥檚 context.

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The Limitations of Zimbabwe鈥檚 Contenting Political Economy Paradigms

tinashenyamunda1 Comment

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As the 2018 elections in Zimbabwe draw near, the political contest on which political party is best suited to steer the country towards a better future will be dominated by the economic agenda during campaigns. The kind of language that both ZANU PF and the opposition coalition led by the MDC (M) will use to persuade the electorate has become all too familiar.

On the one hand will be the nationalist/patriotic discourse celebrating land reform and advancing the programme for indigenisation and economic empowerment. Inherently connected to that is a sharp criticism of global imperial machinations against Zimbabwe through sanctions against a party determined to defend the fruits of its economic transformation following the fast track land reform programme. Underlying this discourse is the argument that Zimbabwe is using local economic transformation to challenge the worst excesses of enduring global imperialism. ZANU PF will again depict the opposition, particularly the MDC, as a movement that is severely compromised by collusion with the imperialist west to the extent that it will struggle to balance local national interests against those of the British and American governments.

Offering an alternative narrative to this discourse is opposition politics that will claim that the more immediate struggle is against nationalist authoritarianism. Making reference to the unending economic crisis, the opposition will argue that the ruling party presided over a poor human rights record, economic collapse characterised by high deindustrialisation, record unemployment, the informalisation of the economy and hyperinflation in the period between 2000 to 2009; as well as its contrasting current excesses of severe illiquidity. The suggested alternative will be re-engagement with the global economy through attracting investment and creating jobs for all.Read More »

The Forthcoming 2018 Elections in Zimbabwe: A Gaze from the Economic Lens

tinashenyamundaLeave a comment

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This blog post attempts to proffer insights on the possible influence of prevailing economic circumstances and how they may play out in political dynamics in the run-up to the 2018 elections. Zimbabwean politics has been intensely competitive since the formation of the MDC in 1999, giving the ruling ZANU PF the most effective challenge since independence. Nowhere, however, did the opposition come any closer to clinching electoral victory than in 2008 where they were eventually talked into sharing power after a violent build up to the run-off elections. The two parties will face each other again in 2018 and the question that remains is whether the efforts at 鈥榞rand coalition鈥� building will address the deficiencies of the opposition. However, as 2018 draws near, it is becoming crystal clear that the structural constraints facing the economy is already setting the battlelines for political parties. Therefore, debates on 鈥榞rand coalition鈥� building in one way or another will have to address the question of the economy in a manner that will resonate with the ordinary men. The political parties that will see beyond electoral fraud and malpractices in their strategies will most likely have more traction with voters.Read More »