Stanley Kwenda
18 February 2009
Harare — Zimbabwean president Robert Mugabe last week presided over the formation of a new unity government. Movement for Democratic Change (MDC) secretary general Tendai Biti was appointed to the post of finance minister.
Biti faces the difficult task of transforming a moribund economy riddled with the following problems: a virtually dead manufacturing sector, a collapsed agricultural sector, a world-record inflation rate, a soaring rate of unemployment and mounting poverty levels. But Biti, a firebrand critic of Mugabe's economic policies, is profoundly aware of the mammoth task that lies ahead of him.
Though he doesn't possess any qualifications in finance and economics, he has a reputation for being a voracious reader with a penchant for quoting from sources ranging from Greek classics, through Shakespeare and Dickens to popular contemporary books like Paulo Coelho's The Alchemist.
The tough commercial lawyer spoke to IPS reporter Stanley Kwenda following his appointment and offered some of his thoughts on how he intends to fix the Zimbabwean economy.
IPS: What are your impressions of your new challenge?
Tendai Biti: The job is the worst in the world but I will have to look it in the eye and I have no doubt that I will be equal to the task and will prevail.
IPS: How are you going to get the country's economy out of the mud?
TB: The first thing is that we have to get the country out of the mess that Mugabe has got it into by putting in place sound measures to stabilise the economy and create an investor-friendly climate.
IPS: How do you plan to do this?
TB: We have to fix the supply side of industry. It has to graduate in the first six months from the near zero percent capacity to at least 60 percent capacity. This will be done by offering packages and incentives to the industrial sectors.
We will also need to change the mining policy and come up with an attractive market structure which will offer local miners international prices for their production. Mining royalty percentages will also have to be looked into, as well as creating an investor-friendly environment by removing various impediments.
IPS: You describe your new job as the worst in the world. There were reports that you were at some point reluctant to participate in this new government. What persuaded you to finally take the job?
TB: Just the fact that somebody had to do it.
IPS: Zimbabwe's economy is largely agriculture-based but this sector is far from its full potential. What measures are you going to put in place to revive the sector?
TB: We are going to invest a lot in this sector, particularly during the 2009-2010 agriculture season.
The sector forms the basis of the country's manufacturing sector and it contributes about 90 percent to the country's gross domestic product (GDP). In short we want to establish a transformation regime in all sectors.
IPS: The country's currency is now equated by many as good as toilet paper as a result of the hyper inflationary environment. What measures are you going to take to reverse this tide?
TB: We will introduce participatory democracy to tap into various ideas as opposed to the centralised command system.
On the micro side of things, we will have to move to save the Zimbabwean dollar by floating it on the market so that it finds its natural value. In the interim we will use it side by side with the South African rand but the solution lies in it retaining its true value rather than the randisation of the economy.
IPS: What about the accusations that the Reserve Bank of Zimbabwe (RBZ) has caused inflation by continually printing notes?
TB: The role of the RBZ in the economy is going to be minimal, returning it to its core functions of managing the country's monetary policy and establishing a real interest regime and encouraging savings in the country's foreign currency reserves.
The printing of money will have to be stopped through the establishment of a strict fiscal discipline regime. We will only spend what we have.
IPS: What are the prospects of the much needed financial injection from the West to kick-start the economic revival?
TB: No doubt the country will need financial injections from the west and there are concrete promises to this effect but these can only be realised after the satisfaction of certain benchmarks, such as the establishment of democracy, respect for human rights and for property rights.
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First, Biti must kick out Gono! Otherwise, he himslf should give up before he is made a laughing stock by Mugabe/Gono.
Why Biti kept mum on corrupt practices and illegal border trade!
Why Biti kept mum on the possibility of tracking down all illegal transfers of funds by Mugabe & cronies to banks overseas and their repatriation?
Anyway, his first public interview is a non-event!
Hope I am wrong!
Re: The Governor of the Reserve Bank, can some good people remind the honorable minister of Finance, Mr Tendai Biti, that the running of a gvt ministry is never a one man show. He cannot sack Gono in a dictatorial way. Not in a democracy. Also, while at it, would you advice the respectable Minister, to stop talking about gvt business in the way he used to do when addressing public metings. Some things are better not put into slogans. He is still somewhat emotional. It appears that Tendai does not appreciate that he needs to understand how gvts are run. He is clearly unfamiliar with the intricacies of gvt administration. If he continues to talk about the President, the Head of the Gvt, as though RMG is a niccapoop or a person of no consequences, he should be ready for the tsunami when it comes ... for there are many out there who would love to see a quick end to this gvt of unity, eg Prem et al How can he continue to insult the President? What good is that to Zimbabwe? Whose interests is he serving? I wish Zimbabwe well, minister Biti!!
Akapfunde, keep your pants on. As governor, Gono can only be sacked by the president. So don't get all so shook up about Mr Biti who is a capable man. If Gono is removed from the reserve bank, then he will probably be made an ambassador somewhere and it will be good riddance to bad rubbish.
I must thank you for your coolness and constructive attitude. Its certainly infectious....l am seeing things in a more relaxed way. Thank you.
Irrational AK47, the teacher who preaches hatred and tribalism in the era of Obama, must realize that his failure to boot out Mugabe has brought about the "failed state" in Zimbabwe.
If ever one has to choose between ZANU-PF and MDC-T, obviously pro-democracy proponents would support the MDC-T. That does not mean that one should thereafter become obssessed is supporting every move of the MDC-T.
One should be critical of any party one supports; that's the basis of progress in transparency. I am critical of some MDC-T initiatives recently, but it does not mean that I do not want the GNU to succeed!
However, the grain of success has not yet been planted. Mugabe is all the time trying to destabilize the MDC-T side. It's already a hide and seek game.
The MDC-T can only succeed where basic human rights, transparency, respect for the rule of law become the driving force of the GNU.
Are conditions conducive for such an attitude in the GNU?
People such as AK47, Hollowjaw and group continue to praise criminal Mugabe and his failed policies that brought about the "failed state".
Only the next general elections will infuse genuine hope in Zimbos' hearts to work for the higher interest of the larger community. In the meantime, bootlickers are having a nice time picking up the crumbs while cholera is spreading like wildfire!
AK47 is a master in distortion of facts! He wants people to believe Mugabe was not behind the exile of over 4 million Zimbos!! He wants people to believe they all went for greener pastures elsewhere! SHAME on the fake teacher who does not want to see truth in that Mugabe terrorized over 4 million pro-democracy activists to run seek refuge in neighbouring countries. It's as if one is denying that Hitler ever committed genocide against jews!
And AK47 claims he is a teacher by profession. He must be very treacherous!!
I have never preached tribalism. You know it. I expressed strong feelings when a post tried to pin blame on the Shona for the errors and abuse of power by some in the previous gvt in gerat Zimababwe. I respect your right to diagree but I consider it the height of cowardiness to become personal in your attacks on me. I could easily do the same because we are most unlikely to meet and even if we do, l do not think you would have the guts to talk like that in my face. Without dwelling in the past, l should like to draw your attention to the fact that the new gvt of national unity is for all Zimbabwes. l shall not, for a moment, not consider Tsvangirai as my Prime minister and national leader. l know you agent provocateurs are still at your endgame of setting Zimbabwe aflame. So far you have failed. Why dont you accept defeat? We Zimbabweans have had our heated arguments but we have crossed the bridge to -peace and prosperity and orderliness and the rule of law despite the divide and rule interference and meddling by outsiders who have, obviously ulterior motives. l do not owe you an apology. You are not a good foreigner. There are a lot of aliens who are friends out there. Not you. God bless all Zimbabweans.
oh please, what democracy do the likes of Gono and Mugabe know!i am one of the people who exercised my democratic right to get them all out of power, but they do not care about what the people wish for, they have delibaretely plundered our houses,yes, murambatsvina, silently killed our fathers, watched as our brothers and sisters die of hunger and cholera, and mercilessly beat and imprisoned those who sought to be our voice.Mugabe does not deserve the title of "President", and sooner or later the day of reckoning will come. Biti is right to be emotional, just as I am, for the ZANUs have blood on their hands. They dont care about the lives of our people. The Mugabes, Chinamasas, Mujuru's, Mnangagwa's..and all of them who have planned that our people suffer in this way shall all pay, for they have ruled as if Zimbabwe is their playground, and God's people their slaves. We did not vote them in, they have forced themselves on us, and held the opposition at ransom, to come and clean up their mess...and they still wish to be around to steal whatever comes out. Tsvangi i say to you, you are our President, it will not be long before Mugabe and his rebels are defeated for good.
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