The Herald (Harare)
6 November 2009
ZIMBABWE is presently saddled with a US$5,7 billion debt that is impacting adversely on the economy, but we need to handle the issue more soberly and ensure that we employ debt settlement strategies that will not prove costly in the end.
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In Zimbabwe, the crying of the lifting of sanctions when talking about the in debteness of the country is contradictory especially when the lifting of the so called sanctions will allow the borrowing of more money there by increasing the debt burden further. I do not believe that any acesses to new money now before we resolve the actual causes of our economic decline will help in any way. While Zimbabwe might be rich in natural resources, I do not think that without creating condusive environment for the resources to be taped and utilised in a way that will benefit the economy as a whole, there is no point in saying Zimbabwe can be in a position to pay off debts. Condusive environment does not only mean the removal of sanctions but also includes stable politics, rule of law, property rights, fremdom of association and free media. I do not in particular favour debt cancellation as it will lead to higher cost of borrowing in future and thus am opposed to this method of dealing with the debt, but I however believe that we should formulate and implement stractural adjustment programs of some sort that can revive the economy at the same time arranging with the people we owe money some acceptable terms of repayment that we would at all cost try to meet. It will be very difficult but is the only way that we can creat a better future for our kids. We don't need decisions that will allow individuals to amass wealth at the expense of the country now or in future.