Bernard Mpofu
30 May 2011
ECONOMIC Planning and Investment Promotion minister Tapiwa Mashakada says the inclusive government or any post-election administration in Zimbabwe will implement the new five-year Medium Term Policy (MTP) plan, amid confusion within the coalition over proposed early polls.
Mashakada on Tuesday announced that cabinet had approved an ambitious US$9 billion economic programme that, among other issues, targets an average of 7% growth in the economy during the same period; a 6% per annum average employment creation rate anchored on new equity injections into existing businesses, leveraging government assets, grants, diaspora remittances and levies and royalties. The Economic Planning minister criticised past economic blueprints for failing to achieve economic growth targets but, however, maintained that the new MTP would be a panacea to Zimbabwe’s economic woes that have seen local industries failing to compete regionally.
Critics say government has since adopting the Economic Structural Adjustment Programme in the 1990s failed to craft economic policies that have stimulated sustainable growth.
Zimbabwe is this year expected to realise positive economic growth, three years in succession since the formation of an inclusive government formed to resolve a decade economic contraction and political instability.
Mashakada said should there be change of government, the new administration would be bound to implement the MTP. Zanu PF is pushing for elections by year end while rival parties in the inclusive government are demanding far-reaching political reforms ahead of the polls.
“The US$9 billion target which we are going to achieve doesn’t matter whether we go for elections or we don’t,” Mashakada said.
“This is a government programme. Whatever political dispensation emerges out of elections, would be bound by the MTP because that is a government of Zimbabwe programme. That is why cabinet as a whole without any abstention have agreed to endorse this document as a panacea for bringing economic development to this country. So elections or no elections, we are determined.”
The MTP, according to Mashakada, marks a shift in government thinking from structural adjustment programmes paradigm towards “development planning” and emphasises the role of a “developmental state” similar to China and India.
“I think there is a new paradigm, new thinking in government that government should run as a business. We are determined to run government as a business and we are going to make sure that there is going to be implementation not rhetoric. We now have the Prime Minister’s office and the Council of Ministers as an implementing arm of government where simple, measurable, achievable, realistic and time bound objectives and critical path targets are set for ministries. We cannot go wrong, we cannot go wrong.”
Government, according to the plan, is also forecasting double digit savings and investment ratios of around 20% of GDP by 2015. Official figures show that domestic savings rate currently stands at 2% of GDP.
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