16 June 2006

Zimbabwe: Govt in Fantasy World On Economic Revival - MDC

THE opposition MDC has dismissed as cheap propaganda government attempts to raise US$2,5 billion in three months to revive the economy, saying this indicated government authorities lived "in a fantasy world".

"The assertion that the country needs at least US$2,5 billion to effect any changes in the collapse of the economy that is taking place at present is probably the only element that has any truth in it.

"What is pure fantasy, however, is the claim that this enormous sum will be raised by the state in 'cash and investments' in three months," the MDC said in a statement.

The government launched an economic blue-print, the National Economic Development Priority Programme (NEDPP) two months ago under which it claimed it would raise US$2,5 billion in three months to stabilise the local currency, fight rising inflation, mobilise savings and ensure food security.

The MDC statement, issued by a faction of the opposition party led by Morgan Tsvangirai, dismissed the blue-print as "fantasy economics".

Economic Development minister Rugare Gumbo told the state media last week that the government had so far raised a paltry US$350 million in cash under the NEDPP, admitting: "We have not gone very far, unfortunately."

He indicated a shift in focus, from raising cash to securing investment pledges to make up for the US$2,5 billion the government intended to raise.

Copyright © 2006 Zimbabwe Independent. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.