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HOPE
(Holistic Program for Economic Transformation)
WORKING POLICY PAPER, 9-11 SEPTEMBER 2015
INAUGURAL, HARARE ZIMBABWE
1
Table of Contents
1.Introduction………………………….………….………………………………9
2.Rethinking Zimbabwe……….………………………………….…..………..10
3. Our Vision…………….………...………………………………..……...........11
4. HOPE………………………………………………………………..................12
5.The Zimbabwean Crisis………………………..............……………………..13
6.
5.1.
Governance, constitutionalism and the rule of law………............…13
5.2.
Leadership crisis……………………………………………….….…13
5.3.Economic challenges………………………….........……………..…….14
A case for a National Transitional Authority (NTA)…........................18
6.1. A case for an emergency stabilization program ZERST...........................................................................................................20
6.2.
Components of ZERST Under the NTA.……….......................……23
6.3.
Urgent stimulus package................................................................24
6.4.
Job creation and re-industrialization.............................................24
6.5.
Austerity
and
rationalization
of
government
expenditure.......................................................................................24
6.6.
Balance of payment position..........................................................25
6.7.
Financial sector reform....................................................................25
6.8.
Rein-fencing social service delivery..............................................25
6.9.
Funding of ZERST............................................................................26
6.10.
Political functions of the NTA........................................................26
7. Beyond ZERST: Pillars of HOPE..................................................................27
Pillar A: Governance, Constitutionalism and the Rule of
Law...................................................................................................................28
I.
The crisis of legitimacy...............................................................28
2
II.
Institutionalizing the new constitution....................................29
III.
Redesigning the executive and the legislature.......................29
IV.
Corruption...................................................................................30
V.
VI.
Transformative institutions…..………………........................…30
Devolution and decentralization..............................................31
VII.
Creating a consulting state.......................................................32
Pillar B: Transitional Justice, National Healing and
Reconciliation..............................................................................................33
Pillar C: Macro–Economic Stability.........................................................34
I.
Fiscal discipline......................................................................34
II.
Addressing the environment...............................................34
III.
Reintegration of zimbabwe into the community of
nations.....................................................................................34
IV.
Financial sector reform..........................................................35
V.
Pension reform .....................................................................36
VI.
Debt sustainability and debt relief......................................36
VII. Tax reform...............................................................................37
VIII. Currency reform.....................................................................37
Pillar D: Job Creation and Formalisation of the Economy...................38
I.
Addressing unemployment.................................................39
II.
Addressing informalization ................................................42
Pillar E: Regional Integration....................................................................43
Pillar F: Re-Industrialisation.....................................................................44
Pillar G: Infrastucture Development.......................................................45
I.
Funding of infrastructure projects......................................46
3
II.
Targets.....................................................................................47
Pillar H: Rural Development....................................................................56
Pillar I: Land And Agriculture…………………………….................…60
I.
Resolving the Land Question..............................................61
II.
Agricultural
Productivity
and
Food
Security…………………….………………...…..............................62
Pillar J: Social Delivery and Social Services..........................................63
I. Health......................................................................................65
II. Education................................................................................67
Pillar K: Labour .......................................................................................69
Pillar L: Diaspora and Remittances.......................................................70
Pillar M: Mining, Beneficiation and Value Addition...........................71
8. Hope Targets...............................................................................................74
8.1. GDP growth path........................................................................76
8.2. Job creation and formalisation of the economy..................................79
9.Conclusion.......................................................................................................80
4
BOXES
Box 1: Key Resolutions of the
1999 National Working People’s Convention
.................................................................................................................................15
Box 1: Hope’s Macro – Economic Targets.........................................................38
FIGURES
Figure 1: Stunted Growth Process (1961-2003)...................................................9
Figure 2: Zimbabwe’s Uneven and Combined Development..........................9
Figure 3: Inflation Profile Jan 2013-June 2015...................................................18
Figure 4: The National Transitional Authority................................................20
Figure 5: Change in Zimbabwe’s Annual GDP growth from 2004 to
2012.........................................................................................................................21
Figure 6:
General Merchandise Trade (US$ Million)..................................22
Figure 7: Sub-Saharan Africa: Civil Servant Wages in 2013...........................21
Figure 8: Global Integrity Indicators..................................................................29
Figure 9: Zimbabwe Governance Indicators, 2007-2012.................................31
Figure 10: Ever-retrenched population.............................................................39
Figure 11: Changes in Infrastructure Conditions and Services.....................45
Figure 12: Agriculture Production, 1996-2015.................................................61
Figure 13: Imports of agricultural products and total food (excl. fish) 1962
to 2012....................................................................................................................61
Figure 14: Mineral Export Potential (Baseline and Active Policy Scenarios),
under different external environment...............................................................71
Figure 15: HOPE Implementation Matrix.........................................................75
Figure 16: Scenarios on time taken to recover and Surplus the 2012
Levels......................................................................................................................76
5
Figure 17: Sector Specific Job Creation Targets................................................76
TABLES
Table 1: Revenues and Expenditures as a % of GDP, 2009-2014...................17
Table 2: Domestic Debt, 2015..............................................................................22
Table 3: Percentage Sectoral Growth 2013-2015...............................................23
Table 4. Zimbabwe’s external public debt........................................................36
Table 5: Percentage Distribution of the Unemployment (Broad) Population
Who have worked before by age group and Sex, Zimbabwe, 2014..............40
Table 6: Roadnetwork of Zimbabwe..................................................................47
Table 7: Selected Indicators for Electric Power in Decade Ahead.................52
Table 8: Access to Water......................................................................................58
Table 9: Child mortality, 2011.............................................................................59
Table 10: Diaspora Remittances, 2009-2015(Jan-Jun).......................................70
Table 11: Value Addition Opportunities in the Mining Sector......................73
MAPS
Map 1: Corruption Perception Index, 2014.......................................................31
Map 2: Levels of Poverty and Extreme Poverty Across Zimbabwe.............57
APPENDIX A.......................................................................................................78
ABBREVIATIONS
ARREST
Agenda for the Resuscitation and Rehabilitation of
Electoral Sustainability,
AU
African Union
BAZ
Broadcasting Authority of Zimbabwe
6
BIPPAs
Bilateral Investment Promotion & Protection Agreements
BOOTs
Build Own Operate and Transfers
BOTs
Build Operate and Transfers
COFFEE
Conditions for a free and Fair Election
COMESA
Common Market for Eastern & Southern Africa
DIMAF
Distressed Industries and Marginalised Areas Fund
DRC
Democratic Republic of Congo
EAC
East Africa Community
EU
European Union and the
FDI
Foreign Direct Investment
GDP
Gross Domestic Product
GNU
Government of National Unity (GNU)
HCB
Hydroelectric de Cahora Bassa
HOPE
Holistic Program for Economic Transformation
ICTs
Information Communication Technology
IDC
Infrastructure Development Council
IFI
International Financial Institutions
IPPs
Independent Power Producers
IWRM
Integrated Water Resource Management
JOC
Joint Operations Command
JOMIC
Joint Monitoring and Implementation Committees
COPEC
Community Peace Committees
MTP
Medium Term Plan
NEDLAC
National Economic Development and Labour Council
NRTF
National Rural Trust Fund
7
NSSA
National Social Security Authority
NTA
NATIONAL TRANSITIONAL AUTHORITY
ODAs
Official Development Assistance
PDP
People’s Democratic Party
PICES
Poverty Income Consumption and Expenditure Survey.
POTRAZ
Zimbabwe
Post and Telecommunications Regulating Authority of
PPP
People Public Partnerships
PPP
Public – Private – Partnerships
RBZ
Reserve Bank of Zimbabwe
SADC
Southern African Development Community (SADC),
SDGs
Sustainable Development Goals
SEDCO
Seed Development Company
SEZs
Special Economic Zones (SEZs)
SWF
Sovereign wealth fund
TBs
Treasury Bills
USD
United States Dollar
WTO
World Trade Organization.
ZANU-PF
Zimbabwe African National Unity (Patriotic Front)
ZCTU
Zimbabwe Congress of Trade Union
ZDC
Zimbabwe Development Council
ZDHS
Zimbabwe Demographic Health Survey
ZEC
Zimbabwe Electoral Commission
ZERF
Emergency Recovery Fund
ZERST
Zimbabwe Emergency Rescue Strategy
8
ZIMASSET
Zimbabwe
Transformation
Agenda
for
Sustainable
ZIMRA
Zimbabwe Revenue Authority
ZimStat
Zimbabwe’s Statistical Agency
ZINWA
Zimbabwe National Water Authority
Socio-Economic
1 INTRODUCTION
For decades, Zimbabwe has remained arrested by structural challenges of
inequality, unrelenting poverty, under-development, political predation,
and continuous boom and burst cycles of economic development.
Figure 1: Stunted Growth Process (1961-2003)
Source: World Bank, PDP Policy and Research Unit, 2015
Successive ZANU PF governments have entrenched the challenges of
inequality and uneven development thereby perpetuating the colonial
economy in which small, relatively modern metropoles were surrounded
by huge reserves of rural poverty.
Figure 2: Zimbabwe’s Uneven and Combined Development
9
Source: Derived from The Zimbabwe Labour Force Survey, ZimStat, 2014, PDP
Policy Research Unit, 2015.
For the past thirty-five years, Zimbabwe has been dominated by
mediocrity, false and corrupt personalities, huge egos, hubris, arrogance,
individualism, selfishness and crony capitalism.
Beyond economic mismanagement, ZANU PF has created a totally unfree
and intolerant society where people live in perpetual fear and subjugation.
The social contract is completely broken down with a new normal
emerging, characterized by high levels of mistrust, decadence and hatred.
A Montage of a
Dream Deferred
By
Hughes
Langston
Does it dry up
Like a raisin in the
sun?
Or fester like a soreAnd then run?
Does it stink like
rotten meat?
10
For the working people of Zimbabwe, the elusive
dream still remains, that of creating a
sustainable, socially just Zimbabwe, in which the
citizen is free to pursue equal opportunities and
happiness in an open, prosperous and
democratic society.
Or crust and sugar
over--
For more than three decades Zimbabweans have
toiled, struggled and participated in multiple
struggles and political formations pursuing the
agenda of change and transformation. Sadly, the
transition has been delayed if not totally
arrested. The dream has been defered.
Like a heavy load.
Like
a
sweet?
syrupy
Maybe it just sags
Or does it explode?
Yet for all the previous challenges and suffering,
the post 2013 election period has defied gravity and created a false and
atrophied state, characterised by dislocation in the ruling elite, divided and
disempowered opposition, and a total collapse of the formal economy
characterised by extreme levels of poverty hitherto unseen.
2 RETHINKING ZIMBABWE
The vacuous state of the country and the state of default post 2013 election,
challenges all Zimbabweans to rethink of strategies of achieving the central
strategic objective of an inclusive democratic Zimbabwe.
Zimbabweans have been doing the same thing over and over again and not
surprisingly, the outcome has been the same. In rethinking Zimbabwe, a
new generation of political leaders and actors must enter the political
space, to create a new narrative and a new political trajectory.
The People’s Democratic Party (PDP) is one such young political Party
focused on redefining the political and economic infrastructure of the
country. The PDP intends to redefine Zimbabwean politics through a
caring, humble and people-centred leadership that believes in unity and
the collective energy of the people while at the same time, placing issues
and ideas, not violence and cult personalities, at the epicentre of political
discourse.
The PDP thus seeks to create a new paradigm in the agenda of Reclaiming
Zimbabwe based on the following;
A humble and bold leadership that believes in working as team.
11
The convergence of all Zimbabweans though a United Front in
fighting the predatory single-dominant party state - hegemony
formation by ZANU PF.
The amplification of social dialogue and securing of a Social Contract
by a consulting State.
An approach based on thought leadership, strategy and the
placement of dominant issues and debate at the forefront of political
differences, discourse and direction.
In other words, the PDP intends to RENEW Zimbabwean politics through
a SMART brand of politics based on sustainable ideas and politics of
accommodation. It is time to convert, Zimbabwe’s vicious cycles of
exclusion into virtuous circles of inclusion.
As a social-democratic party, values and principles of solidarity, justice,
freedom and liberty, democracy, empathetic leadership, equity, panAfricanism, internationalism and equality of opportunities bind the PDP.
However our growth model is of democratic developmental state that
celebrates Zimbabwe’s rich cultural heritage and our natural diversity as a
people. We are thus the solution.
3 OUR VISION
For over three decades the country has suffered in that it has been run and
ruined by a group of men and women who never had a vision or a
destination to take Zimbabwe to. Where there is no vision the people
perish.
The PDP’s vision for Zimbabwe is thus the following:
‘A renewed, inclusive, tolerant democratic developmental state with a
socially just, green economy in which people pursue happiness and equal
opportunities’
4 HOPE
As part of the process of creating a new narrative, the PDP has developed
the present program, the Holistic Program for Economic Transformation
(HOPE), as a meaningful alternative to the current status quo of
incompetence, contradictions, mediocrity, vindictiveness and hopelessness.
12
HOPE is therefore, an economic blueprint with clearly defined SMART
goals for the short and long term outlook for Zimbabwe. It presents a
marked departure and contrast from ZANU PF’s ZIMASSET and the
plethora of other bungling efforts from the same.
HOPE is complemented by a political strategy, ARREST – the Agenda for
the Resuscitation and Rehabilitation of Electoral Sustainability, a
separate document from HOPE that defines the political roadmap to a
sustainable Zimbabwe.
In rethinking the narrative, both HOPE and ARREST are founded on key
strategic pillars, derived from our experiences of fighting ZANU PF
dictatorship in the last three decades. These are:
I.
II.
III.
IV.
V.
VI.
Knowing the opponent, and understanding the shapers and drivers
of the present predatory status quo.
Articulating a new brand of politics that celebrates thought
leadership and puts issues at the forefront. This cerebral approach
deserts politics of slogans and personalities allowing Zimbabweans
to debate and frame the content and context of their struggle.
Creating a counter balance and counter force to ZANU PF through
the creation of a united political platform.
Defining the centrality of convergence through the galvanizing or
creation of united or popular fronts on various agenda and national
issues. In this regard, therefore, social movements will be key and
central in defining the new paradigm.
Defining the obligation, at national level, of crafting an inclusive
transitional stage bridging the current status quo and the Zimbabwe
to emerge after a free and fair legitimate election.
Defining clear and unambiguous demands for a free, fair and
legitimate election.
5 THE ZIMBABWEAN CRISIS
Zimbabwe has a multitude of endless challenges that need urgent
resolution. There is an urgent need for solutions that are curative,
sustainable and palatable. The reality of present-day Zimbabwe is that
these multi – dimensional crises have all coalesced and converged at one
historical juncture with such disastrous consequences for the economy and
working people of Zimbabwe.
13
In creating a sustainable Zimbabwe, a holistic solution that deals with
structural political issues, structural economic issues, structural social
issues and short-term symptoms is therefore required. The challenges
facing Zimbabwe include the following:
5.1.
Governance, constitutionalism and the rule of law
A pre – condition to a sustainable Zimbabwe will be resolving challenges
around good governance and constitutionalism. The ZANU PF
government in the last three decades has subjected the country to a status
quo where there is predation and absence of the rule of law. Personal
security, and security of property rights, is non – existent.
Equally, national institutions have been transformed into personalized
extractive institutions.
Fear and coercion are the order of the day. All the foregoing is coupled
with massive looting of resources through state institutions.
5.2.
Leadership crisis
Self - evidently, the crisis in Zimbabwe emanates from a centre that can no
longer hold, essentially due to a crisis of leadership. As Frantz Fanon
predicted in 1963, ZANU PF, like other nationalist movements, consists of:
a ‘little greedy caste, avid and veracious, with the mind of a huckster, only
too glad to accept dividends that the former colonial power hands out to it’ It
is incapable of ‘great ideas or of inventiveness’ and is ‘already senile before it
has come to know the petulance, the fearlessness or the will to succeed of
youth’.
Zimbabwe’s leadership crisis is manifested through a geriatric elite class
that is concerned with the politics of power, power retention and personal
aggrandizement.
As explained in ARREST, this political leadership reproduced itself in a
totally militarized state that has conflated with ZANU PF and domestic
capital.
The leadership crisis also extends to civic society and the opposition that
has failed to articulate an alternative program and vision to that of ZANU
PF.
14
5.3.
Economic challenges
Structural economic challenges confronting Zimbabweans are, among
others, the following;
The existence of an ‘uneven and combined’ economy
The existence of a false Accumulation Model
Low gross capital formation
Absence of savings and a saving economy
Broken Social Contract
Lack of integration regionally and internationally
Lack of craft competence, capacity and accountability
Huge National Debt
Poverty and underdevelopment
Unemployment and informalisation
Broken-down Public Services Sector
Short and Mid-Term Challenges confronting Zimbabwe today are as
follows:
A run- down economy
High interest rates
Volatile and unpredictable economic drivers such as agriculture and
mining
Bureaucracy and lack of access to public services including access to
investment information and services
Collapsing and distressed companies without lines of credit
Absence of meaningful and strategic investment both domestic and
Foreign Direct Investment (FDI)
Absence of meaningful and direct Overseas Development Assistance
(ODAs)
A disastrous foreign policy anchored on creating conflict with major
capitals and centres of power.
Insensitive geriatric leadership totally impervious to economic
imperators and reality
Corruption and lack of transparency with regard to natural
resources in particular on diamonds
Absence of oversight and accountability over public resources and
programs
Unproductive and uncontrolled government expenditure
15
Collapsing government revenue and multiple avenues of revenue
leakages
A bloated public service dominated by ghost workers
Multiple and wasteful public enterprises that drain the fiscus
Centralisation and absence of devolution of social service delivery
Debt gridlock created by government’s indebtedness to local
authorities and government institutions
Huge budget deficit financed by over-used and unsustainable money
instruments.
Deflation and collapse in aggregate demand
Erratic rainy seasons, absence of alternative agricultural water
sources, collapsed agriculture output, thus absence of food security
Economic illiteracy, policy inconsistencies and incoherencies
Labour market challenges and un-harmonised labour laws
Water and power shortages, where these are available, they are costly
and unaffordable
Absence of social protection and safety nets especially for people
living with disability
Political discord
The cocktail of challenges that Zimbabwe is facing today are not any
different from the problems identified by Zimbabweans who met at the
National Working People’s Convention in 1999 and resolved to tackle the
same head on.
Box 1: Key Resolutions of the
1999 National Working People’s
Convention
“National policies should prioritise the mobilisation and organisation of resources to meet
people’s basic needs for food, security, shelter, clean water, health and education; the
equitable distribution of resources such as land, skills, capital and technology for
production and industrialisation strategies that are based on building and using the
capabilities of the people for production ...”
“The Convention further resolved that measures be taken to restore a people driven process
towards social development, that mobilises and organises capacities within communities
and that matches them with complementary inputs from the state, according to agreed and
legally defined standards ...”
“The state’s role in production systems be redefined towards facilitation rather than
interference, with state intervention in strategic, targeted, transparent and time bound;
16
aimed at resolving market failures; augmenting the market in a manner that maximises
social welfare and overcoming constraints to or providing incentives for development of
areas of future growth and economic opportunity. Where market failures severely weaken
the ability of people to procure basic rights to food, shelter, health and education, the state
shall intervene with targeted, end user directed and time bound subsidies ...”
“Immediate measures should be taken to reduce inflation, including complementary
monetary policy and fiscal policy; rationalisation of ministries and reduction of wasteful
expenditure; strengthened independence and powers of state audit and action on
transgressions found; widening of export incentives and control of non essential imports;
vigorous promotion of local products and self reliant approaches to food security ...”
“These other measure be specified and implemented through a mechanism for national
consensus that involves all national stakeholders, that has a mandate to negotiate,
implement and evaluate economic measures; that is defined by law and that is mandated to
negotiate a social contract on immediate pressing issues in an open, transparent manner
that builds trust and accountability between the parties and that is carried out in an
environment of respect for the rights of the participating parties ...”
Source: ZCTU Publication, 19991.
These structures of failure must be abolished and be replaced by a
RENEWED world order of success. A RENEWED Zimbabwe is possible.
Table 1: Revenues and Expenditures as a % of GDP, 2009-2014
2009
2010
2011
2012
2013
2014
Revenue & grants (% of
GDP)
15.9
29.6
26.7
28
27.7
28
Tax revenue (% of GDP)
14.4
27.9
24.3
26.3
25.3
25.7
Non-tax revenue (% of
GDP)
0.8
1.7
2.4
1.7
2.4
2.3
Expenditures & lending
(% of GDP)
18.7
31.1
29
29.3
30.2
30.6
1
NB: This document relies on these founding resolutions and later publications produced by the PDP team under
previous arrangements. Critical concepts and policy positions are carried forward and where necessary, are
revised given the changing complex realities. This document is also a culmination of a countrywide consultative
process carried out by the PDP Policy Research Unit in 2014.
17
Current expenditure (%
of GDP)
17.9
23.1
24
26.5
26.6
27.2
Capital expenditure (%
of GDP)
0.8
8
5
2.8
3.6
3.5
Source: IMF
Zimbabwe in its current state indicates the twilight of the ZANU PF regime
and therefore a new window of opportunity to galvanize Zimbabweans
towards a vision and agenda for transformation.
HOPE recognizes that a bridge needs to be created between the present
status quo of chaos and failure to that of sustainability. In this regard,
HOPE accepts that as of now, and the immediate post –Mugabe period, an
inclusive transitional mechanism must be established that should attend
to certain urgent national tasks before the conducting of a National
election, in 2018 or 2020.
The PDP, through its two key policy documents HOPE and ARREST thus
proposes the setting up of a National Transitional Authority.
6. THE CASE FOR A NATIONAL TRANSITIONAL AUTHORITY
(NTA)
Zimbabwe is currently facing significant challenges. Never in the history of
the country have political, economic and social crises converged with such
devastating consequences for the population.
The country’s economy suffers from sluggish growth, illiquidity, deflation
and unpredictable policies, which have resulted in dysfunctional markets,
massive
deindustrialization, unemployment
and a
crumbling
infrastructure.
Figure 3: Inflation Profile Jan 2013-June 2015
18
Since the double-digit growth registered in 2010 and 2011—when
Government of National Unity (GNU) was in place—the economy has seen
a downward slump, with GDP growth rates decelerating to 4.5% in 2013
and 3.1% in 2014.
Projections for 2015 suggest further decline, while the PDP predicts that the
situation will worsen towards 2018, see Graph 16. Zimbabwe is in a
recession and is headed towards another period of sustained economic
decline; the likelihood is that by 2018 the average growth will be -19% of
GDP, if nothing is done to stall and reverse the tide.
The current economic quagmire is one of economic under accumulation, a
bi-product of collapsed output and aggregate demand, yet a few years ago
the country set itself in the midst of the opposite of the current scenario;
that of over accumulation.
Clearly, the centre cannot hold.
Experiences on the African continent have shown that where the centre is
not holding, the economy is not delivering, hatred and intolerance are the
order of the day, an implosion becomes inevitable.
19
Post – Mugabe Zimbabwe is likely to see the manifestation of this vulture
or chaos scenario in which unconstitutional and undemocratic, violent
options become real.
To avert crisis, National Dialogue must unlock an inclusive transition that
will reconcile, the competing issues of peace and stability against
democracy and change.
In our view therefore, the NTA creates a win-win situation for ordinary
Zimbabweans, where stability and peace are reconciled with the
imperators of social reconstruction, economic recovery and development.
Even if the worst case scenario does not manifest itself, a post Mugabe
government that continues to fudge on and permit the country to sink
deeper into economic turmoil characterised by unemployment,
hopelessness and fatalism is not an option.
The NTA should thus be established pursuant to convergence. Its functions
will be transitional and will be the following:
To attend to the issues of national stability and peace in a possibly
very volatile post Mugabe period.
To attend to the implementation of a recovery plan, Zimbabwe
Emergency Rescue Strategy (ZERST).
To attend to issues of the breakdown of the social contract, the
renewal and rebuilding of the social fabric of the Zimbabwean
society.
To attend to the creation of conditions for a sustainable election
whenever that election is held.
Figure 4: The National Transitional Authority
20
Source, PDP Policy and Reserch Unit, 2015
The creation of the NTA will require national convergence among all
stakeholders. In this regard, it is important for ZANU PF, with its faulty
majority from the contested 2013 electoral outcome to put national interests
first and give Zimbabwe a chance. Equally it is incumbent upon exhausted
players in opposition parties to stand aside and give Zimbabwe a chance.
The region, through the Southern African Development Community
(SADC), and indeed the African Union (AU), must revive and restate its
mandate of curatorship over Zimbabwe, established at the SADC ExtraOrdinary Summit in Mozambique on 29 March 2007. SADC therefore must
help in the negotiations on the setting up of the NTA and at the same time
must provide guarantor and oversight over the same.
6.1.
The case for an emergency stabilization program - ZERST
As indicated above, Zimbabwe’s economy is in a crisis. It is currently in a
state of recession characterized by haemorrhage, deflation and stagnation.
Since 2011, the economy has been on a downward spiral with the outlook
period being that from 2015 onwards, negative growth rates of below zero
will be experienced.
The government itself, in its own statistics acknowledges this fall in output.
21
Figure 5: Change in Zimbabwe’s Annual GDP growth from 2004 to 2012
Source: Centre for Global Development, 2014
A defining feature of the recession has been corrosive deflation which has
seen month on month inflation averaging -2%. The result is that the present
economy has become a small enclave arrested by stagnant accumulation,
low aggregate demand, low output and low gross capital formation.
The current account deficit has been widening, reflecting the massive
reliance on imports as the domestic economy has collapsed.
Figure 6:
General Merchandise Trade (US$ Million)
Ministry of Finance, 2015
22
As revenues dwindle, expenditure obligations have remained high, 82% of
government expenditure is going towards a bloated public service wage
bill created largely by thousands of ghost workers recruited in the run up
to the 2008 and 2013 general election.
Figure 7: Sub-Saharan Africa: Civil Servant Wages in 2013
Source: Country Authorities (percent of government expenditure), 2013
Another immediate challenge is that of dwindling revenues as a result of
the destruction of the supply side of the economy, the result has been a
massive increase in the budget deficit which in real terms is now in excess
of 12% of GDP.
Table 2: Domestic Debt, 2015
The dwindling government revenues has created a situation in which
massive domestic arrears are accumulating which have been monetized
23
through excess use of Treasury Bills (TBs) whose stock at any given time is
nearing US$ 2 billion. The TBs have amounted to a de-facto printing of
money by the government, crowding out the business sector thus pushing
up interest rates to usurious levels.
Table 3: Percentage Sectoral Growth 2013-2015
Source: Ministry of Finance, 2015.
Another product of falling government revenue and rising expenditure
obligations has been the illegal practice of raiding Central Bank RTGS
balances, and in the process creating a real danger of systemic collapse of
the Banking system.
6.2.
Components of ZERST Under the NTA
The NTA must therefore implement an emergency recovery program; The
Zimbabwe Emergency Rescue Strategy (ZERST). It will seek to reverse
the current downward spiral that is heading towards a full blown
economic meltdown whose total negative effect will be catastrophic.
ZERST is an integral part of HOPE and is a precondition to the full
recovery envisaged under HOPE.
24
The urgent focus of ZERST is to drive Zimbabwe out of the present crisis of
deflation, stagnation, under – accumulation, devaluation of capital and
valorisation of labour. The following are thus the key features of ZERST:
6.2.
Urgent stimulus package
Injection of a USD 4 Billion stimulus package, under a fund, the
Zimbabwe Emergency Recovery Fund (ZERF) targeted at
infrastructure and reindustrialization with a view of ensuring that
“the economy spends its way out of the recession”
Executing serious public works, housing, water, transport, public
works and ICT infrastructure funded from the stated stimulus
package.
6.3.
Job creation and re-industrialization
The stimulus package should provide funds for the resuscitation of
closed or distressed companies. Thus, ZERF will provide long term
cheap lines of credit to ensure that old companies are revived and
new companies created.
Old industrial funds created during the GNU such as Dimaf and
ZETREV, should be revived and recapitalised.
Urgent attention should be paid to SMEs and ZERF will see the
recapitalization of SEDCO and other instruments of credit available
to Small to Medium businesses.
The Indigenization and Empowerment Act will be repealed under
the NTA to facilitate Foreign Direct Investment into Zimbabwe.
Pushing levels of inflation from deflation figures of under zero
percent to at least 5% will be critical.
6.4.
Austerity and rationalization of government expenditure
Since 2013, the budget deficit has been widening with increase in
domestic arrears, and the creation of a debt gridlock in the economy.
The NTA will thus seek to restore the principal of ‘we eat what we
kill’, at the very minimum maintain a primary balance.
ZERST will also prescribe the monetizing of the budget deficit
through the issuance of Treasury Bills and other instruments which
25
have had the net effect of the government effectively printing the
USD.
Removal of ghost workers so that expenditure of the wage bill is
brought to at least 30% of expenditure and at least 8% of GDP (see
table 4, a comparative analysis of wage bills of Zimbabwe to other
African countries)
6.5.
Balance of payment position
Attractive instruments will be created under ZERST to attract
Diaspora capital and to formalize Diaspora remittances.
Reducing the current account deficit to converge with the SADC
benchmark of at least 9% of GDP will be priority.
Normalization of relations with the international community and
appealing for increased Overseas Development Assistance
Engagement and increased cooperation with the International and
Financial Institutions including new global development banks.
Managing and controlling expenditure, particularly the proscription
of domestic arrears.
Liberalizing capital account transactions
Tax incentives on SIP investments
Speedy conclusion of more extensive Bilateral Investment Protection
and Promotion Agreements (BIPPAs)
6.6.
Financial sector reform
Pushing of annual savings to at least 25% of GDP
Lowering the rate of interest to sustainable levels so as to make the
cost of money cheap and attractive to new business.
6.7.
Rein-fencing social service delivery
ZERST should see the investment of defined amounts in key social
sectors normally vulnerable to austerity measures. These include:
o Education, health, water and sanitation
26
o agricultural inputs to vulnerable households
o grants to persons living with disability
6.8. Funding of ZERST
The NTA, should be able to raise the 4 billion USD that will be put under
ZERF.
The PDP, has the capacity and experience of ensuring that ZERF is funded.
In this regard, domestic sources and resources should be used to lay seed
capital of ZERF under ZERST.
The International Financial Institutions, the World Bank, African
Development Bank and International Monetary Fund have a stake in
ZERST. An opportunity exists for the consolidation and expansion of the
various Trust funds that are currently administered by these institutions.
The bulk of the funding must come from the international community that
has been ready for many years. Zimbabwe must show an irrevocable
commitment to an agenda for democratisation, constitutionalism,
transparency, pro-poor policies and reform.
The Diaspora will also play a critical role in the funding of ZERST as party
of efforts to tap of the country’s vast human resources now located across
the globe.
The PDP has quietly been engaged in efforts to oversee the establishment
of ZERF.
6.9.
Political functions of the NTA
The NTA has other functions beyond implementing ZERST. These other
functions include the following:
Attending to issues of national stability and peace in a volatile post Mugabe period.
Attending to the pre – conditions of a free and fair election whenever
that election is held.
Attending to issues of the breakdown of the social contract, and the
renewal and rebuilding of the social fabric of the Zimbabwean
society.
These functions are self evident.
27
7. BEYOND ZERST: PILLARS OF HOPE
ZERST is a transitional short-term emergency program, and represents
essential pre-condition for the holistic economic transformation of
Zimbabwe.
Beyond ZERST, a sustainable Zimbabwe must be created.
This agenda for reclaiming Zimbabwe will actualize the PDP’s vision of
‘a renewed, inclusive, tolerant, democratic developmental state
with a socially just green economy in which people shall pursue
happiness and equal opportunities’
To create a sustainable Zimbabwe, the PDP identifies thirteen pillars
critical to the construction of a sustainable Zimbabwe. These are:
Governance, Constitutionalism And The Rule Of Law
Transitional Justice, National Healing and Reconciliation
Macroeconomic Stability
Job Creation and Formalization of the Economy
Regional Integration
Infrastructure Development
Reindustrialization
Land and Food Security
Social Delivery and Social Services
Labour
Mining and Value Addition
The Diaspora and Remittances
Rural Development
28
PILLAR A - GOVERNANCE, CONSTITUTIONALISM AND THE RULE
OF LAW
HOPE is an economic blueprint. However, no economic program or
agenda in Zimbabwe or anywhere else will ever succeed without effecting
fundamental political and institutional reform.
Extractive institutions, corrosive politics, fear, collapse of the rule of law,
patronage, clientialism have been institutionalized in Zimbabwe.
Reclaiming Zimbabwe, thus requires, a rethink of the State, governance
and the rule of law.
The State must be remodelled, renewed and redesigned if Zimbabwe is to
have a chance.
The PDP government will thus attend to the following issues:
I. The crisis of legitimacy
Zimbabwe suffers from a crisis of legitimacy as a result of elections that
have been opaque and fraudulent.
Restoring legitimacy requires a free and fair election that produces a
legitimate and credible result that will be accepted by all Zimbabweans
and be recognized by the Africans and the rest of the International
Community.
In this regard, the PDP in its ARREST document has developed COFFEE.
COFFEE makes the following demands which need to be attended to
before the next election:
Dealing with the legal framework governing elections, including the
need for a completely new (biometric) voter’s roll and introduction of
proportional representation in all seats (lower and upper house).
Reforming the administration of the elections including the
legitimacy and credibility of the Zimbabwe Electoral Commission,
including the need to demilitarise ZEC and employment of impartial
staff.
29
The electoral environment, including redefining the role of different
state players and putting a stop to the role of traditional leadership in
shepherding citizens during electoral processes as well as JOC’s role
in electoral rigging, since 2000; needs to be made conducive to the
attainment of a free and fair election. The codification of the ‘political
parties’ code of conduct’ must also be done before the next election.
II. Institutionalizing the new constitution
Zimbabwe adopted a new constitution in May 2013 following a
referendum held in March 2013.
Regrettably, that constitution remains unimplemented largely as a
result of the ruling Party’s disinterest and disdain of the same.
Zimbabwe’s laws must be harmonized and reconciled with the new
Constitution. In this regard, at least 400 pieces of existing legislation
need to be harmonized with the new Constitution.
The new Constitution obliges the creation of new Institutions,
through Acts of Parliament, which did not exist before. The ZANU
PF government has neglected creating these institutions or where
they have been created, for instance the National Prosecuting
Authority, the Gender Commission, ZEC and the Human Rights
Commission; the same are totally non- independent bodies oblivious
to the dictates of the New Constitution.
The starting point therefore, of establishing the rule of law in
Zimbabwe thus lies in actualizing the new Constitution.
Figure 8: Global Integrity Indicators
30
Source: Global Integrity, 2015
III. Redesigning the executive and the legislature
The PDP will ensure that the constitution is amended so that the size
of Cabinet does not exceed twenty members.
Cabinet should be proactive, lean, competent, inclusive and value
driven.
Equally, Parliament must constitutionally be redesigned so that it
consists of one hundred and twenty members of the National
Assembly elected through a system of Proportional Representation,
and sixty members of the Senate, with five representing each
Province, elected on the same basis.
Recognising that Zimbabwe has suffered under an Imperial
President, the PDP proposes to abolish this monarchical construct by
providing that the President will be elected through Parliament and
not directly.
Zimbabwe’s Civil Service, which comprises at least 550 000 is
bloated. The majority of these are ghost workers that were recruited
during the run- up to the 2008 and 2013, General Election.
The Public Service thus needs urgent rationalization so that
Zimbabweans can get full value from a trimmed, competent,
depoliticised, Civil Service that does not exceed 180 000.
The bloated state also includes too many state enterprises whose only
basis of existence is patronage and politics. The PDP will thus
undertake the reform to rationalize these State Enterprises.
IV. Corruption
Corruption is a huge cancer in Zimbabwe with Zimbabwe ranked a
lowly 156 from 174 on the global Corruption Perceptions Index.
The country too is a major source of illicit financial flows, IFFs with
USD 3 Billion having been lost between 2009- 2012.
Reducing corruption in the long term requires building the inclusive
and sustainable Zimbabwe which creates equal opportunities and in
which all are free to pursue happiness.
This is the Zimbabwe that will be created by the PDP through HOPE.
In the short term, Zimbabwean institutions created to combat
corruption must be truly independent and be well funded in order to
carry out their duties.
31
These institutions include the National Prosecuting Authority, the
Anti – Corruption Commission as well as the Zimbabwe Republic
Police
The Anti- Corruption Institution, including the Zimbabwe Revenue
Authority (ZIMRA) should also have the power to carry lifestyle
audits that should flash out the thousands of looters who are
exhibiting their loot through conspicuous consumption in the form of
obscene mansions, vehicles, and other paraphernalia not consistent
with the Zimbabwean economy.
Under a PDP government, the law will oblige full asset disclosure on
politicians and senior civil servants.
The Procurement Laws will be reformed for both the Central
Government and Local Authorities and other enterprises to ensure
that certain tenders exceeding certain thresholds are adjudicated by
an independent, transparent, open mechanism that is open to judicial
review.
Map 1: Corruption Perception Index, 2014
32
Source: Transparency International, 2014.
V. Transformative institutions
Despite the fact that Zimbabwe now has a progressive constitution, the
same remains largely unimplemented, and as a result, Zimbabwe’s
Governance Indicators remain very low.
Figure 9: Zimbabwe Governance Indicators, 2007-2012
Source: The World Bank, Worldwide Governance Indicators
On paper, the new constitution is supposed to create a break with the past
by guaranteeing constitutionalism and the rule of law but the reality on the
ground is that the old order of fear, predation and pro-executive or
executive mandate remains intact.
The enjoyment of people’s rights therefore remains a pipe dream.
It will thus be necessary as part of RECLAIMING ZIMBABWE, to ensure
that functionaries and bureaucrats presently doing a disservice to the
independent institutions provided for by the constitution, including the
judiciary, give way and chance to a crop of Zimbabweans that are
committed to serve the new order provided for by the new constitution
and give Zimbabwe a chance.
33
VI.
Devolution and decentralization
The current status quo is characterised by centralization of power,
centralization of resources and centralization of development.
Uneven development is thus the order of the day. With 65% of
Zimbabwe being rural and Harare the only relatively developed city.
The PDP thus believes in the total devolution of power, resources
and development.
For a sustainable Zimbabwe to be a success, a people in an area must
own their resources, lead their development process and be led by a
leadership that resonates with their plight.
In this regard, the Provincial Structures in the new constitution must
be strengthened through constitutional amendments that will oversee
the election through Proportional Representation, of a Provincial
Premier, who becomes the Province’s Chief Executive.
The Provincial Councils so defined in the Constitution must also be
empowered to make Provincial laws relating to matters of
development, local taxes and the environment.
Local Authorities must be modernized to ensure that they carry out
their civic duties in a clear, transparent and open manner, consistent
with the Constitution and the developmental aspirations of the local
communities.
Certain amenities are human rights and should never be privatized
under a PDP government; these include water and health facilities.
VII. Creating a consulting state
For over three decades Zimbabweans have been run by a non-consulting
State.
HOPE seeks to create a consulting government that relies on participatory
decision making processes at the national level.
In this regard, a PDP government will do the following;
Decentralise the operations and activities of government through
actualising and strengthening the institution of devolution referred to
above and as defined in the new constitution.
Make mandatory, the obligation of government to consult citizens on
major policy deliberations, such as the National Budget, policies and
legislation.
34
Through an act of parliament, establish the Zimbabwe Development
Council (ZDC), as the principle consultative board to work closely
with the Executive, Parliament, Reserve Bank of Zimbabwe and State
Enterprises in the formulation and supervision of HOPE and the
programs under it.
The ZDC, will be composed of labour, the Diaspora, industry and
government, will be modelled along the lines of NEDLAC South Africa
legislation and will therefore actualise and formalise the Social Contract in
Zimbabwe.
PILLAR B: TRANSITIONAL JUSTICE, NATIONAL HEALING AND
RECONCILIATION
Conflict, attrition and intolerance have contributed to the decimation of the
Zimbabwean economy.
To reclaim Zimbabwe, mechanisms must be created that ensure that
violence will never be an instrument of political arbitration again.
Equally, in order to move forward, the wrongs of the past must be
corrected, but in an inclusive manner that does not make the future a
prisoner of the past.
A program of Transitional Justice and National Healing will be
implemented by the PDP, based on the following principles:
Victim-centred approach;
Comprehensive, inclusive, consultative
stakeholders, particularly the victims;
The establishment of truth;
Acknowledgement;
Justice, compensation and reparations;
National healing and reconciliation;
Non-repetition (never again);
Gender equity;
Transparency and accountability; and
Nation building and reintegration.
participation
of
all
The PDP will secure a future where violence will not be repeated through
legislated setting up of a Joint Monitoring and Implementation
35
Committees (JOMIC) as well Community Peace Committees (COPEC)
under the National Peace and Reconciliation Commission.
The GNU period enjoyed the benefits of JOMIC - an interparty
arrangement which had gained the trust and confidence of the people.
JOMIC operations helped in curbing violence and undermining its effect in
the period leading to the 2013 elections.
PILLAR C: MACRO–ECONOMIC STABILITY
The transitional arrangement under the NTA entails implementation of
ZERST as described above. ZERST devotes a lot of attention on micro –
economic revival. The macro–economic proposals under ZERST should
thus be deepened and consolidated beyond the NTA with special emphasis
on the development of an anti- cyclical fiscal policy.
Macroeconomic stability is an essential but not sufficient precondition for a
successful economic recovery program. HOPE seeks to oversee a dynamic,
flexible macroeconomic strategy anchored on the pursuit of an anti-cyclical
fiscal regime.
The macro-economic strategy will thus be based on the following:
I. Fiscal discipline
Maintaining a primary balance anchored on the principle of ‘we eat
what we kill’.
Restricting the public sector wage bill to 30% of expenditure and less
than 10% of GDP.
Restructuring expenditure patterns from recurrent to capital.
Reform and modernization of public finance management systems to
promote efficiency and transparency.
Public sector reform consistent with the proposals made under
PILLAR A above.
Maintaining sustainable and low interest rates that can facilitate
cheap lines of credit to business
II. Addressing the environment
Repeal of the Indigenization and Empowerment Act.
36
Restoration of property rights particularly on land in accordance
with Chapter XVI of the Constitution of Zimbabwe.
Expanding the use and strength of BIPPAs.
Improving the ease of doing business in Zimbabwe.
Constructing an economy based on modern technologies and ICTs.
III. Reintegration of zimbabwe into the community of nations
Normalizing relations with other Africans and the rest of the
International Community.
The maintenance of an ideologically neutral foreign policy driven by
Zimbabwe’s economic interests. In this regard, the PDP government
will make sure Zimbabwe re-joins the Commonwealth.
Normalization of relations with International Financial Institutions
(IFIs) including the new global development institutions.
IV.
Financial sector reform
Strengthening of oversight over the financial sector by establishing
an independent Financial Affairs Regulatory Authority that will
carry out the supervision and surveillance of financial institutions;
thus, taking away from the Reserve Bank the power to regulate and
supervise the Banking Sector.
Amendments to the Banking Act to enhance good corporate
governance, strengthen corrective measures by the regulator and
criminalize activities and actions that prejudice depositors.
Financial sector reform to promote good governance, including
measures to promote sanctions and penalties against those
responsible for Bank failures.
Establishment of a Banking Ombudsman whose function is to
oversee compliance in the Banking Sector.
Strengthening governance at the Central Bank so that the same sticks
to the core functions of monetary policy management and
management of the national payment system.
Recapitalizing the Central Bank and restoration of its ‘lender of last
resort’ role.
37
The promotion of electronic payment systems, including incentives
for the use of plastic money (debit and credit cards).
The implementation of financial measures to promote inclusion
particularly of persons in the rural areas.
Establishment of a credible Credit Bureau.
Restoration of savings accounts in Zimbabwe and promotion of
saving instruments to ensure that savings are at least 25% of GDP.
Monitoring and controlling fees charges and lending rates of
financial institutions to avoid arbitrage and usurious rates.
Enhancement of legislation and policies that promote microfinancing.
V. Pension reform
The PDP government will restructure government pensions, to move
away from the current defined benefit scheme to a defined
contribution scheme.
This move creatE a huge vessel of savings in the economy which will
ultimately provide better benefits to its members.
Pension reforms will also focus on addressing national pensions that
were decimated by hyper- inflation, ZANU PF’s economic
mismanagement and opaque transactions by some insurance firms.
VI.
Debt sustainability and debt relief
Rewarding Zimbabwe for its policy consistency will mean that Africans
and the international community must accept a total write off of
Zimbabwe’s debt. The manner in which the international community has
dealt with some countries in the European community, a case in point
being that of Greece, which offers a sufficient precedent of a total write off
of Zimbabwe’s miniscule debt.
Table 4. Zimbabwe’s external public debt
2011
2012
2013
38
2014(est.) 2015(proj.)
Public and Publicly 6,268
guaranteed debt
6,709
7,013
7,181
7,607
Percent of GDP 57.2
53.8
52.0
52.5
54.4
Of
Which: 5,101
Arrears
5,313
5,607
5,761
5,903
42.6
41.6
41.1
42.2
Percent
of GDP
46.6
Source: CGD, 2015
The PDP’s point of engagement to peer Africans and the international
community will be the following:
Restoration of good governance, rule of law and constitutionalism.
Commitment to crafting an inclusive virtuous Zimbabwe as defined
in ARREST.
The implementation of sound economic policies that will guarantee
that Zimbabwe will never sink again into unsustainable debt.
A commitment to massive expansion of social services with an
undertaking of UN’s Sustainable Development Goals (SDGs).
A commitment to a sustainable climate and environment agenda.
Only the PDP government can make these demands and requests and not a
predatory ZANU PF.
VII. Tax reform
As part of fiscal reform, the establishment of an efficient tax regime is
essential. Zimbabwe loses millions of dollars in tax avoidance, tax evasion
and blatant corruption at its border posts.
Zimbabwe needs to reduce the burden of taxation on its people. The ratio
of revenue to GDP, standing at around 30% is one of the highest in
Southern Africa.
The following measures will thus be implemented under a PDP
government:
Strengthening tax administration through, among other things the
modernisation of the Zimbabwe Revenue Authority (ZIMRA).
39
The modernisation of the Income Tax Act so that among other things,
the basis of taxation is source and not residence.
Widening of the tax base through the formalisation of the informal
sector and the growth of SMEs.
A departure from a regime of direct taxation to a regime of
progressive taxation.
VIII. Currency reform
The PDP, recognizes that in the long term, it is not sustainable for
Zimbabwe to continue to use a basket of multiple currencies as legal
tender.
The USD for instance, is exacerbating the challenges of high cost
structures as well as the un-competitiveness of Zimbabwe’s exports.
However, the PDP recognizes public sentiment and will thus never
reintroduce the Zimbabwean dollar.
The PDP government will therefore push for regional integration and
the creation of a functional Monetary Union.
Zimbabwe’s new currency will thus be the regional currency adopted
by the Monetary Union.
Box 1: HOPE’S MACRO – ECONOMIC TARGETS
HOPE will ensure the construction of a sustainable Zimbabwe in which the
following will be achieved:
1. An average growth rate of 10% during the implementation of HOPE.
2. Single digit annual inflation of about 5%.
3. The maintenance of a primary balance, and the attainment of a budget
deficit of less than 5% of GDP by the time that the NTA completes its
work.
4. Exchange reserves of at least three years import cover at any given time.
5. Bringing down unemployment levels to at least 25%.
PILLAR D: JOB CREATION AND FORMALISATION OF THE
ECONOMY
With an anchor growth rate of 10% per annum, HOPE intends to reduce
the unemployment rate to 25% by creating at least 3 million jobs in the first
five years.
40
The major thrust of HOPE’s democratic developmental model will be to
create employment and stem the tide of informalization.
Figure 10: Ever-retrenched population
Source: Labour Force Survey, 2014
III.
Addressing unemployment
The PDP government will thus focus on the following measures:
41
The pursuit of a progressive growth model that creates growth with
jobs.
Converting the country’s accumulation model from one based on
extraction, to one based on industrialization, value addition and
beneficiation as will be detailed in Pillar F, on industrialization and
Pillar M on Mining and Beneficiation.
Table 5: Percentage Distribution of the Unemployment (Broad) Population Who
Have Worked Before by Age Group and Sex, Zimbabwe, 2014.
Age
Group
Male Female
Total
Percentage
15-19
31.7
68.3
100
20-24
29.8
70.2
100
25-29
27.4
72.6
100
30-34
32.1
67.9
100
35-39
28.9
71.1
100
40-44
31.3
68.7
100
45-49
38.2
61.8
100
50-54
28.2
71.8
100
55-59
35.3
64.7
100
60-64
31.4
68.6
100
65+
44.6
55.4
100
Total
30.9
69.1
100
Source: ZimStat, Labour Force Survey, 2014.
42
Through the Zimbabwe Development Council, the development and
operationalization of the National Employment Policy Framework
supported by active labour market policies.
The National Employment Policy must ensure among other things
that:
o Wages are competitive.
o An efficient and informative labour market system is created.
o The provision of resources of economic empowerment projects
that will include youth, women and people living with disabilities.
Foster employment creation through the following specific initiatives:
SME and cooperatives promotion and development.
Labour-based public works.
Business linkages.
Community-based service provision such as access to microcredit.
o Promoting the employment of young women.
o Programmes targeting people with disabilities and other
vulnerable groups.
Various business linkage programmes, mentorship and internship
programmes that create jobs will be carried out.
o
o
o
o
Housing: Increasing the rate of building houses is a major element of
HOPE, not only to address an urgent social need, now evidenced by
the increasing sprouting of unplanned housing schemes in most
urban centers, but also because house construction will create a large
number of job opportunities.
Agrarian reform: The development of the communal areas, the
model A1 & A2 and the Small Scale Commercial Farms resettlement
areas are not simply to raise the incomes of small-scale farmers. It
will also create employment via backward and forward linkages in
rural and urban areas. This will be enhanced through the
development of Industrial Clusters and Special Processing Zones.
Public works programme: This will create jobs in the short term
through the rehabilitation of infrastructure destroyed or damaged
over the years as well as in the construction of new infrastructure in a
43
bid to close the gap between the developed and the less developed
areas, urban and rural.
Entrepreneurs and small-scale enterprises: Support will be available
covering access to capital, training, input supply and other support
services. The PDP will legislate the contracting of these companies for
the supply of inputs and services by the government and by
corporate business.
Trade policy: Trade policy will be designed to nurture and sustain
Zimbabwe’s dynamic comparative advantage, with a short-run
imperative to increase exports, derived from labor-intensive activities
such as horticulture, clothing, etc.
Tourism: The revival of tourism will be a major thrust of the PDP
government, with a view both to increasing foreign currency inflows
and to restoring and expanding employment in the tourism industry
and related activities, such as art and craft products.
Energy and water: Expansion of these sectors will create only a
modest number of direct jobs, but the enhanced availability and
reliability of energy and water supplies is a crucial prerequisite for
growth and employment creation in other areas, especially in
agriculture, mining and the manufacturing industry.
Main productive sectors: The traditional main productive sectors
(agriculture, mining and manufacturing) will be major beneficiaries
of the restoration of a rational economic environment. In the short
run, new job opportunities are expected to arise in the mining sector,
while the recovery of commercial agriculture and the manufacturing
sector, both extremely adversely affected in the past few years, are
expected to be more protracted. The establishment of the Agriculture
Commodity Exchange will aid in the marketing of agricultural goods
for small-scale farmers.
IV.
Addressing informalization
The current levels of informalization and deindustrialization require
special attention in formalizing the informal economy. HOPE proposes to
address this through the following:
44
Source, Newsday, 2015 - “vending in Harare, Zimbabwe”.
Developing skills education and vocational training.
Innovative, gender sensitive, training skills development programs
such as apprentice programs, mentorship, business incubators and
entrepreneurial training.
Crafting of an enabling legal framework, that among other things,
offers incentives for business registration and licensing.
Registration and licensing of the informal sector.
Amending the Social Security Act to provide coverage of the same to
workers in the informal sector.
Provision of micro- financing to various projects within the informal
sector.
Creation of business linkages between the informal sector and the
formal sector.
Unionization of workers in the informal sector.
Community based service provision.
45
Development of industrial parks and work stations for those in the
informal sector.
PILLAR E: REGIONAL INTEGRATION
Zimbabwe is a small economy with an effective demand emanating from
an active population of not more than 8 million people. Full regional
integration, i.e. a Customs and Monetary Union, is in the best interests of
the country.
As part of regional integration, the PDP considers that full integration with
Mozambique must be considered a top priority in view of the fact that the
Port of Beira is a mere 285kms from the City of Mutare which in turn is
350km from Harare.
Any future regional integration must thus recognize the importance of
Mozambique to Zimbabwe’s economy. Regional integration will create
massive economies of scale and leverage apart from creating an immediate
market of 300 million citizens.
The adoption of a Regional Currency will also entail that Zimbabwe
manages to devalue the USD which is now putting a premium on the
economy whilst at the same time avoiding resort to the moribund
Zimdollar.
Regional integration will also allow the PDP to develop a stable and
predictable export oriented environment. Integration will remove the
hassles and nightmares experienced at regional ports of entries and border
posts.
Regional integration will also ensure a uniform tariff regime within
Zimbabwe’s key trading blocks of COMESA, SADC, and the EAC
Finally, Regional integration will create a regional common front, at
international level, and negotiations within the context of the European
Union (EU) and the World Trade Organization (WTO).
PILLAR F: RE-INDUSTRIALISATION
The PDP makes no apology that at the center of its development plan will
be the massive industrialization of Zimbabwe. This agenda will focus on
altering Zimbabwe’s current false accumulation model based on extraction.
46
The agenda of beneficiation, value addition and cluster development will
motivate PDP’s industrialization policy.
In this regard, the following programs are key:
Fundamentally improving Zimbabwe’s competitiveness and the ease
of doing business in Zimbabwe
Increasing access to capital to entrepreneurs through ZERF, DIMAF,
ZETREF and other new facilities
Special attention will be paid to small scale entrepreneurs including
measures that include:
o providing contracts in public works programs.
o development of spatial linkages.
Deepening and diversifying the country’s industrial base through
development of industrial clusters. These will include the following;
railway, steel, cotton, clothing, motor and timber clusters.
The setting up of Special Economic Zones (SEZs) that will amplify
beneficiation and spatial development.
Special Economic Zones will thus focus on the following
o Inclusive promotion of value addition and beneficiation.
o Promotion of industry clusters in less developed parts of the
country.
o Promotion of skills development, training and knowledge
sharing.
o Promotion of industry clusters in less developed parts of the
country.
o Supporting the integration of regional and spatial value chains.
Supporting public-private institutions, both industry specific
and transversal.
PILLAR G: INFRASTUCTURE DEVELOPMENT
Three decades under a ZANU PF government has seen minimum gross
capital formation. Zimbabwe thus suffers a gross infrastructure deficit of at
least four decades which can only be bridged, according to the African
Development Bank, by an investment of at least USD14 billion in a period
of five years.
Figure 11: Changes in Infrastructure Conditions and Services
47
The following principles guide the PDP’s infrastructure policy objectives;
All infrastructural sub-sectors must have a modern, efficient
infrastructural base, adequately maintained, and sufficient to meet
the country’s needs.
Assured public and private sector investment to keep pace with
growth in demand and facilitate investment in the productive
sectors, without crowding out productive investment.
A rapid increase in the levels of access by the mass of the population
to modern infrastructural services.
Access to state-of-the-art skills, expertise and infrastructure
technology.
Participation and development of Zimbabwean enterprises and
skilled personnel wherever possible in the country and in exporting
infrastructural services to neighbouring states.
I.
Funding of infrastructure projects
48
As indicated above, to ensure that Zimbabwe addresses the huge deficit of
gross capital formation, it has to source major funding for its program.
To fund Zimbabwe’s infrastructure challenges will require multiple
sources of funding that include concessional borrowing from IFIs, and
development partners, Public – Private – Partnerships (PPPs), People
Public Partnerships (PPPs), Build Operate and Transfers (BOTs), BOOTs,
Venture capital and private international funds.
To ensure coordination, and avoid, uncoordinated debt contraction, the
PDP will ensure that an Infrastructure Development Council (IDC) is set
up to coordinate the prioritization and funding of all projects.
As shown in Pillar M on Mining, the PDP will set up a Sovereign Wealth
Fund to harness surplus from Zimbabwe’s commodities.
The Sovereign Wealth Fund will be leveraged to finance infrastructural
projects.
II.
Target areas
Roads
Zimbabwe has a road network of 88 0000km of which less than 14% is
paved. The majority of the roads are thus dilapidated and serve as
perennial death traps.
49
Table 6: Roadnetwork of Zimbabwe
It is crucial to ensure all-weather roads, which access cities, towns and
rural areas and are complemented by efficient, comfortable, competitive,
affordable and safe passenger services. It is thus crucial that the paving of
provincial and interprovincial roads across the country be carried with
urgency.
The PDP government will therefore do the following:
Rehabilitate the primary, secondary and urban road network over a
10 year period to 2025.
Rehabilitate the tertiary network over a fifteen year period to 2030.
50
Expand network capacities in critical areas.
Strengthen financial and institutional capacities for regular
maintenance of the network and for oversight of the road transport
industry.
Implement reforms in the roads sector to align Zimbabwe with the
requirements of the SADC Protocol on Transport, Communications
and Meteorology.
Develop an urban transport system including a metro system for
Bulawayo and Harare.
Implement a comprehensive program for road safety.
Dualization and expansion of strategic road links that include,
Beitbridge – Chirundu, Beit-bridge - Victoria Falls, HarareNyamapanda, Plumtree - Forbes Boarder Post.
Railway
The railway line in Zimbabwe has all but collapsed with only a few routes
servicing a very narrow industrial base. It is therefore crucial that we
restore the national rail network and ensure provision of efficient freight
and passenger railway services.
No country has
infrastructure.
ever
industrialised
without
functional
railway
The PDP government will therefore carryout the following programs:
The rehabilitation of and electrification of the railway infrastructure
particularly, linking major cities and industrial centres, is imperative.
Expanding the national railway networks across the country, linking
the inter country with trading partners in the region and the intercities.
51
Urban metro- systems
The defining status quo of modern cities is the development of a fast,
environmentally clean, urban commuter network commonly known as the
Tube or the Metro.
The PDP will thus develop a modern metro- system for all its major cities
with priority being given to Chitungwiza – Harare – Norton - Ruwa, Network and the Pumula – Llewellyn – Cement Side – Bulawayo –
Network.
The national railways of zimbabwe
The PDP proposes to restructure the NRZ into two companies.
A state owned railway Infrastructure Company that would own the
track and related infrastructure. It will be responsible for the
operation and maintenance of the railway transport system.
A commercialized railway services company that would compete
with others and would operating as a freight and passenger service
concessionaire on the entire public railway network with
concessionaires to pay concession fees for maintenance and operation
of the railway.
52
Aviation
Zimbabwe’s Civil Aviation is in a state of comatose and requires major
surgery.
The number of aviation passengers have reduced from a peak of 2.6 million
in 1997 to under 500 000 in 2015.
The PDP thus proposes the following:
The adoption of an open air policy to allow any airline to operate to
and from Zimbabwe and on all domestic routes.
Rationalizing, commercializing or restructuring the National Airline.
Investment in air safety and communications equipment to enable
Zimbabwe to achieve Category One Aviation Status.
The rehabilitation and modernization of every city airport including
Buffalo Range, Gweru, Mutare, Kwekwe, Hwange, Masvingo and
Beitbridge Airports.
Set- up an independent regulatory framework.
Water
The PDP government places the issue of access to water at the centre of its
agenda. In this regard, the goal is to introduce a stakeholder participatory
framework under the Integrated Water Resource Management (IWRM) –
that involves particularly women (who bear the brunt of water problems at
the household level). The PDP government will address the following
challenges:
Harnessing water for enhanced agricultural production (as well as
clean water for domestic purposes) and other low-cost productive
water technologies that can be availed at mass levels.
Rehabilitating commercial irrigation capacity as part of agrarian
reform.
Setting and enforcing standards of service, especially for quality and
prices, while ensuring the protection of vulnerable groups.
Separating the roles of regulation from service provision as opposed
to the current situation where Zimbabwe National Water Authority
(ZINWA) is in charge of both.
Enforcing high sanitation standards though introduction of
technologies, including Blair latrines and eco-friendly options.
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Energy
The provision of adequate energy is the mainstay of any developmental
agenda. Energy is a key driver and enabler for any economy.
Zimbabwe currently has installed capacity of 1 960MegaWatts, and a low
baseline demand of 2 200MegaWatts.
However, electricity generation has been crippled in the last ten years
between 2003 to the present, average electricity generation hovering at 950
MegaWatts.
The active scenario baseline envisaged by HOPE of 10% growth rate,
requires instalment capacity of at least 4 220 MegaWatts by the year 2025.
Without this capacity, Zimbabwe’s economic prospects will be stunted.
National energy policy
Under a PDP government a National Energy Policy will be developed,
anchored by HOPE which will address the following challenges:
Expansion of generation capacity.
Promotion of alternative green and renewable sources of energy.
Addressing the challenges of aged and absolute energy
infrastructure.
Attending to the obligation of rural electrification to ensure that
every household in Zimbabwe is electrified by the year 2025.
Attending to transmission challenges.
54
Establishing a solid, competent regulatory framework.
Institution of equitable demand side management systems.
Promotion of research and development.
Energy generation
The PDP believes that at a total cost of 4.33Billion USD, the country will
have installed a generation capacity of 4 220 MegaWatts by the year 2025.
Table 7: Selected Indicators for Electric Power in Decade Ahead
Source: PDP, 2015 adopted from AfDB, 2011
The generation expansion will focus on the following signal projects:
The rehabilitation and modernization of Hwange 1- 6 Power Stations.
The construction of Hwange 7 and 8 thermal Stations.
The construction of a 2 000 MegaWatt Hydro – Power Station at
Batoka Gorge to be shared with Zambia.
The construction of a coal fired power plant in Gokwe Sengwa and
the Lupane Gas Projects.
The construction of at least 30 small Hydro Power stations
throughout the country.
The rehabilitation and modernization of Sanyati, Harare and
Bulawayo Power Stations.
55
The financing of the above projects should emanate from private
investment in the form of Independent Power Producers (IPPs) as well as
finance from International Institutions particularly the World Bank.
In the interim, Zimbabwe should also enhance its relationship with HCB of
Mozambique, to increase to at least 1000 MW its electricity imports, which
are cheaper anywhere, from Caborabasa.
A PDP government, with its strong belief in regional integration, believes
that the region should put all focus on the development of the massive Inga
Dam in the DRC which will ultimately provide the permanent lasting
energy solution to the region.
Renewable energy
The development, promotion and exploitation of alternative green energy
sources is an imperator for a PDP government.
Special focus will therefore be given to the following:
Solar energy.
Liquid Bio- fuels including Ethanol blending .
Promotion of cleaner fossil energy products.
Promotion of energy from degradable bio – mass material.
Transmission
Zimbabwe’s transmission and distribution network is old and archaic,
substantial resources are required for its upkeep and upgrade.
The PDP government will ensure that the substantial investments, in the
region of 1.5million USD are mobilised from non- State sources to attend to
this challenge.
Regulation
Gone are the days when the ownership of the generation and transmission
network were owned solely by the State.
The PDP believes that Independent Power Producers (IPPs) should be
encouraged to provide electricity to the national grid just as they are
allowed to provide liquid fuels.
Allowing multiple actors in the energy sector therefore requires a strong,
independent regulator.
56
The PDP will thus establish a strong and inclusive Regulatory Authority
that will work hand in hand with the Tariffs Commission.
An increase in supply of electricity and the presence of IPPs should see, the
price of electricity going down.
Information Communication Technology (ICTs)
THE PDP considers ICTs as a major champion driver of the economy. ICTs
can facilitate Zimbabwe to “leapfrog” its developmental deficit and create a
high value, inclusive, equal and informed society.
HOPE’s ICT policy is anchored on the following:
Expanding access to the global communication network of submarine
cables, with a national broadband network of fiber- optic cables.
The creation of an enabling environment for the growth of the ICT
industry in the country.
The provision of universal service and access to information and
communications facilities in the country with special emphasis on
rural areas.
Expansion of the number of landing platforms for access to the
international submarine network so as to include links with South
Africa, Mozambique, Malawi, Namibia and additional links with
Botswana and Zambia.
Complete the construction of domestic back borne fiber- optic
network, thereby laying the basis for rapid expansion within the
country to access low cost communications.
Create a single regulatory oversight body for the ICT sector. Thus,
the PDP proposes that both the Broadcasting Authority of Zimbabwe
(BAZ) and POTRAZ must be merged.
Create a new legal framework that will cover all the converged ICTs.
Promote competition among service providers, to ensure that costs of
service delivery are reduced.
57
Rationalize the ownership of NetOne and TelOne.
Expansion of the range of e-applications that are available
particularly, e-governance and e-education.
E-governance
The current Zimbabwean government under ZANU PF has never
appreciated ICTs and the migration to e- governance.
The PDP government will be modern and will adopt a consumer facing
and consumer interacting style of governance.
Government functionaries and bureaucrats should have access to Notepads
and other gadgets that are interconnected with minimum use of paper as
part of e – administration.
The following services will be modified:
Online visa applications.
Online passport application.
Online voter registration.
Online access to ID cards, births and death certificates.
Online applications of immovable property, mortgage bonds, patents
and trademarks and company registration.
Online submission of tax returns.
Interactive online websites for each government ministry and state
enterprise.
PILLAR H: RURAL DEVELOPMENT
More than three decades after independence, Zimbabwe has an enclave
economy dominated by an under developed rural area.
Zimbabwe’s rural communities are extremely under developed with
persons living in extreme poverty.
58
Map 2: Levels of Poverty and Extreme Poverty Across Zimbabwe
Source: ZimStat, PICES 2011-2012, IMF Report, 2015.
The social and development indicators are shocking and frightening.
59
Table 8: Access to Water
It will be the obligation of a PDP government to craft a holistic national
plan to tackle rural development.
This plan will be anchored on the following:
Introduction of industrial clusters and Special Economic Zones
located in rural areas
Provision of a formal title to rural land to enable it to be
hypothecated for developmental purposes.
60
Source: ZDHS, 2011
Table 9: Child mortality, 2011
Massive investment in rural infrastructure with special attention to
the following:
o Construction of modern paved roads and bridges.
o Rural electrification.
o Access to ICTs including Internet broadband and e-education.
o Financial inclusion including the designing of financial
products that suite the low-income rural population as a way of
tapping and encouraging savings.
o The provision of modern social services in health, education,
water and sanitation.
o The sponsoring of agricultural models centered on value
addition and beneficiation.
o Investment in dam construction and irrigation schemes in order
to make agricultural activities a yearly activity as opposed to a
seasonal activity.
o Improvement of access to markets for agricultural products
through the re-introduction of the Agricultural Commodity
Exchange.
Housing
61
The right to decent housing is a universal right that must also apply to
those living in Zimbabwe’s rural communities.
Rural Housing will thus be a major focus of a PDP government.
That the majority of Zimbabweans are still living in grass thatched houses
without electricity or proper water facilities should have been a major
concern of the ZANU PF regime. Sadly it was not.
The PDP government will thus create a National Rural Trust Fund
(NRTF), targeted at attracting international and local capital to deal with
the provision of 500 000 rural housing in the first five years.
This Fund should see the planning and designing of uniform housing units
that will be rolled out in every Province.
Each Housing unit will have modern facilities that include piped water,
ablution facilities and electricity.
The HOPE Housing Units should be complemented by the construction of
community centers in rural areas that provide for amenities such as
community halls, sporting facilities, public libraries, public Internet
facilities and entertainment taverns.
The PDP Rural Housing Units should be mapped and have street
addresses. Furthermore, each owner shall have title to the same and shall
be free to hypothecate the same.
PILLAR I: LAND AND AGRICULTURE
Despite a good season in 2014, Zimbabwe’s agriculture has been in
sustained decline since the land reform in 2000.
The increase in production from 2009 has since started to decline as from
2012 while imports of food increased from 2001. A number of factors
account for the decline in production:
Absence of capacity
Absence of collateral and credit facilities
Poor research and extension services
Absence irrigation infrastructure
Absence and manipulation of agricultural markets – increased
corruption –makoronyera –especially in tobacco marketing.
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Lack of climate change and adaptation.
I. Resolving the Land Question
The land issue was at the core of the liberation struggle. The PDP
government will bring Zimbabwe’s land question to closure through a
democratic and participatory process aimed at equitable, transparent, just,
lawful and economically efficient distribution and use of land. The PDP
government will therefore ensure the following;
Set up an impartial, independent, well-resourced, professional
agency - the Land Commission, as provided for under the national
constitution.
The restoration of collateral security in land, to facilitate sustainable
funding of the agricultural sector, consistent with the constitution of
Zimbabwe.
Granting title to existing farmers.
Deracialising land ownership.
Ensuring the elimination of multiple land ownership through a land
audit.
Figure 12: Agriculture Production, 1996-2015
63
Source: Ministry of Finance, 2015
Guarantee the security of tenure through the proscription of further farm
occupation and invasion.
Rehabilitation and expansion of irrigation infrastructure.
Rationalise the use of land.
Institute land tenure reform in the communal areas.
Finalise the issue of compensation for the former white commercial
farmers.
Creation of markets and in particular of the restoration of the
Zimbabwe Agricultural Commodity Exchange that was abolished by
the Zimbabwean Government in 2000.
Figure 13: Imports of agricultural products and total food (excl. fish) 1961
to 2012
64
Source:FAO, PDP Policy Research Unit, 2015.
II. Agricultural Productivity and Food Security
Full recovery of the agriculture sector will require implementation of
strategies aimed at restoring the basic elements of the agricultural
production system.
The PDP government will therefore give priority to the following policy
issues;
Financing agricultural infrastructure: allocate financial resources
towards the rehabilitation of the national herd, farm infrastructure such
as irrigation, tobacco barns, dairy and cattle handling facilities, farm
buildings, and feeder roads. In order to fully empower the newly
resettled farmers there is need for seasonal, capital and land loans can
be provided by commercial banks as well as the Rural Development
Fund.
Agricultural markets: it is crucial that markets for agricultural produce
are restored. The makoronyera unfortunate development in tobacco
production must be curbed. Marketing for cereal produce such as
maize, wheat must be given a priority through the establishment of the
Zimbabwe Agricultural.
Investment in equipment: a functional and organized farm must have
access to farming mechanisation for tillage, harvesting and
transportation, storage will be vital for driving agriculture.
65
Harnessing water resources for agriculture: more than 80% of our
arable land rely on rain-fed farming but do not have access to proper
irrigation facilities.
Access to agricultural inputs: ease access to fertilizers and availability
of good quality seeds is crucial for accelerated food security. The PDP
government will provide incentives for local blending of compound
fertilizers, and exploration of long-term opportunities for cheaper and
more sustainable domestic production. Financial support for seed and
fertilizer production will be offered while constraints on the revival of
local input supply industries will be removed.
Irrigation intensification and expansion: Improved irrigation is critical
to increasing agricultural productivity. Investments in irrigation and a
shift from dry land to irrigated agriculture will be required. In this
regard, incentives will be provided for farmers to invest in energy- and
water-efficient irrigation systems and technologies. Rebuilding of
irrigation infrastructure to mitigate on the impact of climate change and
improve productivity is crucial.
Livestock development: Several approaches will be implemented to
improve livestock productivity, including increasing the availability of
animal feeds through targeted programmes, such as seeding ranches
and rangelands and enriched fodder, increasing reliance on the use of
artificial insemination services and purchasing breeding bulls and cows
for targeted parts of the country, especially around the proposed
Disease-Free Zones.
Climate Change: Climate variability over the years has caused
devastating effects on agricultural production. However, the ZANU PF
government has not invested in climate change even though it has
impacted negatively on the majority of our farmers who rely on rain
fed farming. The PDP government will invest in farmers’ adaptation to
climate through intensified irrigation infrastructure development.
Enhance research and extension services – The PDP government
will invest in research and extension service to boost agriculture
production and to ensure the country copes with climate change.
66
PILLAR J: SOCIAL DELIVERY AND SOCIAL SERVICES
Post election Zimbabwe has seen the increased levels of extreme poverty as
evidenced by increased reliance on tsaona – a food pack (composed of
mealie-meal, cooking oil, salt and sugar) that last a single day for a
household. The suffering of the people must be addressed as a matter of
urgency through strengthening of social safety nets.
Cash transfers through ZEREF, established under the NTA are necessary
and will serve the double purpose of creating aggregate demand and
alleviating poverty. In addition, the following must be done;
Improving health services delivery.
Ensuring adequate support for our education system.
Addressing rural poverty.
Focus on providing urban and rural amenities such as refuse
collection and clean water.
Strengthening social safety nets and focusing on irrigation
infrastructure, access to power, social services and income generating
programmes.
A defined program of rural livelihoods support focusing on quick cash
generators such as livestock and poultry farming, brick making and
gardening must be promoted. The Enhanced Rural Livelihoods Program
(ERLP) must target vulnerable groups such as women, youth and those
living with disability.
I.
Health
The government takes serious cognizance of the importance of health, and
its centrality to national development, noting that no prospects for
development will be realized if the population suffers from ill health, and if
visitors and investors alike are not assured of access to quality health care.
The PDP government will ensure that Zimbabwean citizens and residents
will have access to the highest possible levels of health and quality of life,
67
which will allow them to participate fully in the socio-economic
development of the country.
The priority is to build a world class health delivery system that ensures
the realization of the people’s right to health, as enshrined in the
Zimbabwe constitution, by fulfilling the State’s obligation to ensure
accessible, affordable, acceptable, quality health services, equitably
distributed, and directed towards priority problems. PDP will
systematically rebuild the health services by:
strengthening the district health system, i.e. primary health care, the
clinic network and district hospitals.
building virtuous linkages between our responses to AIDS and the
overall strengthening of our health system.
Co-operating with the traditional health sector in research, patent
protection and use of traditional remedies.
The following will be the key principles underpinning the PDP health
delivery system:
Service Standards - develop core service standards, including
norms governing human resource distribution, essential drugs and
equipment supplies through the National Health Board and
Parliament. Local authorities in co-operation with other statutory
bodies will be responsible for inspection and reporting on these
standards.
Equity in Health Services: Equity in access to health services is
critical for sustainable development.
The government will
implement equity-oriented measures that will ensure that all
Zimbabwean citizens have access to quality health care.
Accountability and Participation in the Health Services: The
government will build mechanisms for effective participation of
communities in priority setting for effective delivery of health
management services. This will be achieved through the following;
o Auditing strategic national health institutions, including
teaching hospitals, laboratories, the blood transfusion service
and medical stores.
o Auditing the public-health infrastructure with local authorities
to assess capital investment or maintenance requirements,
68
especially water treatment, waste disposal, sewage, ambulance
services and mortuaries;
o Coordinating public, private (profit and non-profit) and
traditional health services to ensure information flow and avoid
the duplication of services,
Health Care Financing: The government will leverage its rich
resource endowment to support the development of a state of the art
health delivery system that adequately responds to the health needs
of citizens.
Public health will be a priority sector: The promotion of public
health through education and prevention of disease will be central to
the Zimbabwean health care system, with community participation
in the planning, provision, control, and monitoring of the service,
including provision of safe drinking water, sanitation, housing,
waste disposal and food hygiene across the urban, rural, farming
and resettlement communities.
Investment in primary health: An efficient system of primary health
care will be established. A community based and managed system of
primary health care clinics will form the base of a health care system
incorporating all hospitals and specialist health care services. At least
2 000 primary health care centres – each centre serving the needs of
approximately 1000 families.
Efficient referral system: An efficient and well-funded referral
system will be put in place to complement the public and primary
health care approach.
II.
Education
Against the background of the challenges posed by high levels of
unemployment and underemployment and endemic poverty, education
and training can play a strategic role in helping the nation to achieve propoor and inclusive development by integrating the marginalized groups.
The PDP government will improve the conditions of schools, teachers and
children by improving pay and non pay incentives for teachers, including
69
housing, professional development, ICT and other support for teachers
working in disadvantaged areas.
The general working conditions for teachers and ancillary staff will be
improved, with special incentives for rural teachers being provided.
The PDP government will strengthen the supervisory systems and
procedures to ensure that a high standard and quality of tuition is
maintained.
The education and training system in Zimbabwe continued to focus
exclusively on the formal sector, neglecting the non-formal (communal and
informal) which is now the mainstay of the economy. The PDP government
will therefore;
Promote a ‘pathways approach’ that caters for the various aptitudes
and interests of students.
Integrate early childhood education into primary education and
developing programs for learners with special needs.
Improve the quality of education and training by promoting a
stakeholder, approach.
Establish a National Training Authority, to create a more demanddriven and flexible system at tertiary level.
Develop a comprehensive national skills-development policy
framework for Zimbabwe.
Develop a manpower recovery plan for the public sector, and
undertake sector-based human-resources audits.
Increase private sector participation funding of the educational needs
of the country.
Expand and improve vocational and technical education.
The PDP government will respond to the needs for various levels of the
education sectors as follows;
Pre-school Education
All pre-schools are registered. All children go through pre-school.
70
The local language to be used as a medium of instruction.
Allocation of adequate resources, standardized curricula and the
supply the supply of professional educators in the pre-school sector.
Provide adequate organizational structures and monitoring.
Primary Education
Free all primary education.
Expand the coverage of science, information technology, culture and
local languages.
Promote inquiry, creativity and problem-solving in learning books
and learning resources.
Avail facilities for remedial education for those in need;
Secondary Education
Ensure that all students have access to secondary-school education;
especially girls;
Professionalize and capacitate School Development Committees,
Associations and Boards;
Ensure that the professional competence of teachers is constantly
renewed;
Broaden the range of secondary-school subjects to increase the career
choices of the students upon graduation from secondary school;
Strengthen school supervision and support systems in order to
enhance and guarantee the quality of tuition;
Provide opportunities for students at senior secondary level to
pursue either academic or vocational and technical education;
Tertiary Education
Establish financing mechanisms that enable children from poor
communities to access tertiary-level institutions;
Strengthen the universities’ ability to mobilize resources, in particular
to invest in information technology;
Deploy adequate resources for research and technological
development;
Achieve adequate levels of student funding based on fair public–
private shares and provide for public loans to students;
71
Restore the function of catering and accommodation services and
restore them to the responsibility of institutions;
Provide mechanisms for improved involvement of the student and
staff and parents bodies in the running of the university.
Sports and Culture
Encourage and support participation in sporting activities by all
sectors of society for their health and enjoyment
Facilitate the participation of national teams and individuals in
regional and international competitions in all sports.
PILLAR K: LABOUR
Constitutional provisions advancing the workers’ rights are yet to be
actualised, depriving workers of their rights. The PDP government will
harmonize labour laws and facilitate the setting up of a Labour Court
which is fully constituted and enabled to carry out its mandate in an
impartial manner.
PAYE – the amount of untaxable salaries must be decreased to allow for
higher disposable income for the workers to generate demand for
produced goods and for the development of savings in the country.
The social security conditions for the working people remain precarious.
The PDP government will therefore do the following;
Ensure the establishment of ZDC and securing a Social Contract,
Optimum employment,
Harmonisation of labour laws;
Vocational training programs implemented in partnership with the
private sector,
Social Security and protection - The government is the biggest employer
in Zimbabwe and yet the social security conditions for the workers remain
perilous. The PDP government will do the following;
Unbundle the National Social Security Authority (NSSA) to re-orient
it towards workers social security,
Establish the National Health Insurance similar to the Ghana model,
from NSSA surplus income,
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Institute pension reforms to ensure that the fund also funds
infrastructural development.
PILLAR L: DIASPORA AND REMITTANCES
Zimbabwe has lost huge human capital to the Diaspora. These citizens
have now gained knowledge, experience and wealth that the country has
not sufficiently utilised for developmental purposes.
Table 10: Diaspora Remittances, 2009-2015(Jan-Jun)
Source RBZ, Exchange Control, 2015
The PDP government will:
Leverage on Diaspora skills and remittances to fund development
and create employment in the targeted sectors of the economy.
Harness the Diaspora, including ensuring that they participate in key
decision making processes in the government including through
participation in the social dialogue.
Ensure that the Diaspora vote in national elections
PILLAR M: MINING, BENEFICIATION AND VALUE ADDITION
The mining sector, will for a long time, be a cornerstone of the
Zimbabwean economy. However, mining, together with agriculture are the
cornerstone of a false accumulation model that is based on extraction and
has since 1890 created extractive institutions. The mining sector is also
faced with the following problems;
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Power supply shortages and interruptions. Inadequate capitalization and financing. Uncertainty emanating from the defects of the indigenization policy.
Skills flight. Dilapidated infrastructure, inefficient rail and telecoms system. Environmental degradation mainly due to illegal mining operations.
Figure 14: Mineral Export Potential (Baseline and Active Policy Scenarios),
under different external environment.
Source: Volumes: McMahan et al. 2012. Prices: Global Economic Prospects,
Staff Estimates.
Note: The price shocks were done only in gold and PGM prices. Assumptions: Baseline:
July 2012 prices; Baseline-High50% price shock: Baseline low: -25% price shock; active:
Optimistic case: Active-High: Optimistic case with 50% price shock: Active-Low:
Optimistic with -25% price shock.
The PDP government will thus pursue an active policy scenario that will
encourage investment and expansion in the mining sector at the same time
concentrating on spatial linkages that will turn Zimbabwe’s mining from
the current status quo of a high value – low impact industry to a high value
– high impact industry.
Under the PDP’s policy scenario, USD 19 billion should be invested into
existing projects this will create a potential active policy return of USD 23
billion by 2022.
Part of the PDP’s mining policy will involve the following:
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Investment in exploration and geological surveys - The PDP will set
up a mining exploration company that will take advantage of
modern infrastructure that will take stock of Zimbabwe’s minerals.
The crafting of a new Mines and Minerals Act that recognizes the
State’s dominion in mineral resources, balanced with the need of
attracting investors. The new act will include the following:
o The ascension of the use it or lose it principle.
o A simplified mining titles administration system.
o Establishment of a professional commodity mining board.
o Environmental management best practices.
o Skills development and retention
o Incorporation of communities in the developmental agenda.
o Deregulation of mineral marketing.
o Promoting small scale mining.
o Spatial development in mining areas.
Encouraging joint ventures
mining enterprises.
with local investors with large scale
Development and promotion of shared processing facilities to
minimize costs to small scale miners.
Investment in human resources development prioritizing local
employment through training.
Table 11: Value Addition Opportunities in the Mining Sector
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Source: Ministry of Finance, 2013
Diamond mining
The diamond sector in Zimbabwe has been a disastrous cacophony of
corruption and pillage since the discovery of alluvial diamonds in Marange
in 2006.
The PDP government will thus create a Diamond Act that will cover the
following:
The State control of alluvial diamonds given their fungebility and
their capacity to create conflicts as blood diamonds
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The separation of diamond mining from diamond marketing
The promotion of value addition and the proscription f exportation of
unpolished or uncut diamonds
A clearly defined revenue sharing formula between the State and
private investors
Mining linkages
To make mining a catalyst of broad based development, linkages
must be developed.
Backward linkages – these can be developed with infrastructure,
skills and technology development,
Spatial linkages- these link the state, private sector, civil society, local
communities and other stakeholders in beneficial partnerships.
Mining must be incorporated into cluster development aligned to
regions and areas of endowment.
Sovereign wealth fund (SWF)
The establishment of a SWF controlled by Parliament will be key in
harnessing Zimbabwe’s commodities for inclusive, sustainable growth.
The PDP, will create a SWF fundamentally different from ZANU PF’s
failed attempt.
This fund will capture surplus from the commodity sector to be used for
infrastructure and for the enjoyment by future generations.
There are many models of SWF, and the PDP government will Model its
own SWF along Norwegian lines.
8. HOPE TARGETS
The PDP government will reform government to enhance the delivery of
HOPE.
Figure 15: HOPE Implementation Matrix
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Source: PDP Policy and Research Unit, 2015
8.2.
GDP growth path
The PDP government will, under HOPE, reverse the negative deflationary
patterns and immediately set the country towards a positive growth
trajectory as illustrated in Graph 16. By 2018, the PDP believes, the country
would have recovered to 9% growth under the NTA and to 16% under the
PDP government by 2023. On the other hand, the country is set to implode
by 2016, under the current ZANU PF negative growth path and is geared
to reach -15% by 2025.
The PDP government will, under HOPE, avoid a catastrophic decline in
GDP per capita foreseeable under the chaos Scenario presided over by the
ZANU PF government. Whereas, under the ZANU PF government, GDP
per capita is set to fall to as low as US$100 per annum, the PDP
government will secure a GDP of US$2500 by end of 2015.
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Figure 16: Scenarios on time taken to recover and Surplus the 2012 Levels
Source: PDP Policy Research Unit, 2015
8.3.
Job creation and formalisation of the economy
Following formalisation of the economy so that 15% of the 3 million jobs
envisaged under the PDP government will be generated from
manufacturing, while distribution and tourism and transport and
communication will each contribute 12% and 12%, agriculture 16%, public
works, mining 22% while finance and insurance 5% by 2023.Figure 18:
Figure 17: Sector Specific Job Creation Targets
Source: PDP Policy Research Unit, 2015
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9. CONCLUSION
The implementation of HOPE and the proposed programs under it, such as
the NTA and ZERST will usher in another Zimbabwe where all
Zimbabweans will have opportunities to prosper and pursue happiness.
The PDP believes that with solid and thought leadership, dialogue and
collective will, the current negative scenario will be changed overnight into
a positive scenario of HOPE and success. However, this is consequent upon
Zimbabwean setting selfish interest aside and confronting the challenges
before us head-on. The PDP is thus committed to resolving these
challenges through working with other well meaning Zimbabweans.
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APPENDIX A - POLICY CONSULTATION REPORT
Introduction
The following is a national report on the PDP Policy consultations that
were held throughout the country in a period spanning three months. The
report is a summary of needs which came out as a result of the consultative
process which was facilitated by two consultants, Mr Bhunu and Mr
Changondola.
The workshops addressed members of the provincial management
committees from the three wings of the party and all district chairpersons
in the 210 constituencies.
75 percent of the number being females attended the policy consultations.
Table 1: Attendance of participants by gender
Name of Province
Harare
Bulawayo
Chitungwiza
Midlands South
Mashonaland West
Mashonaland East
Manicaland
Matebeleland North
Matebeleland South
Midlands North
Mashonaland Central
Masvingo
TOTAL
Male
38
45
42
46
40
45
37
45
56
45
35
46
Female
32
37
46
34
55
33
23
25
44
38
45
44
TOTAL
70
82
88
80
95
78
60
70
100
83
80
90
Objectives of the consultative process
The Policy consultations had the following as some of its objectives:
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To ensure lower structures participate in the formulation of party
policies, programmes and actions.
To build the party in all of Zimbabwe`s political provinces.
To discuss ways of recruiting new members in all of the party`s
provinces.
To define the new political route to be taken by the party.
To deliberate, and inform the ideology of the party.
Challenges that affected the previous arrangement leading to the Mandel
Declaration:
The following challenges were cited in all the twelve provinces as the
ones that affected the party in the previous arrangement.
Personalization of the party – Logo someone`s face and a surname.
Violence in the party – A dangerous shift from the values and
principles of the party
Deviation from the party constitution – Selective application of the
party’s` principles and the use of shady unconstitutional groups in
decision making e.g kitchen cabinet
Democracy mutilation – No democracy
Curtailed information flow
Victimisation of party activists by other party functionaries through
their vigilante groups made up of youth comprising of what was
called the street committee.
Unprocedural suspensions of party cadres.
Factionalism
Abuse of party funds and assets
Massive rigging of primary elections – imposition of candidates
Elitist party – {Use of money to gain political mileage, patronage etc.}
Brand Erosion through the President`s undemocratic tendencies and
personal public conduct leading into the party being put into
disrepute.
Positives in the previous arrangement before the Mandel Declaration?
Having the courage to challenge Zanu PF head on and won the
2008 election with a majority.
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Education and other social services improved and the stabilisation
of the economy was detected during the GNU.
Capacity utilisation of industry improved to 60% during the GNU.
We managed to influence positives in the new constitution.
There was an improvement in some laws.
We were non – violent in instituting change. We did not provoke
war or any insinuation of war. We did not take arms.
Influenced ruling party to be non – violent and to be peaceful in
issues political.
We demonstrated during times of tension that we will stand in
solidarity with those who are being victimised by powerful
individuals in the party.
Defining the PDP party
The consultants led a session of discussing values to guide the party on
which ideology to adopt. The following values were commonly agreed
in the 12 provinces:
Freedom
Equality
Justice
Fairness
Solidarity/kunzwirana/feeling for others
Respect
Equality of opportunities
Tolerance
Empathy
Team work
Transparency and accountability
Members said the following must also define the new party
We are social democrats.
We want to respect the Constitution.
Equitable distribution of wealth.
To engage all stakeholders in policy and decision making in all
sectors of government.
- Develop a culture of consultation from the grassroots.
-
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- Build good relationships with our African neighbours and the
international community.
- We have to be Pan Africanists.
- We have to be accommodative both internally and externally.
- Create continuity with all cadres both old and new.
- Devolution and decentralisation of power.
- Solidarity with all affected cadres.
Participants said focus must be on the following as points of distinction
Dealing with real problems.
Allow consultation.
Be humble.
Respect our society and cultural values.
Non-imposition of leaders.
No hate speech.
Non-violent.
Respect of the Constitution as an organisation.
Honesty.
We are a team.
Not tribalistic.
Working with all progressive minds.
Challenges outlined in the 12 Provinces
Unemployment
Infrastructure Problems – Bad Roads, bridges
Energy – Power shortages
Limited markets
Low Harvest/production
Disease Outbreaks and poor public health delivery system
Shortage of houses
Low capacity utilisation of industries
Poor sanitation facilities
No information networks especially in resettlement areas
And also poor education facilities
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No capital for projects
Lack of Farming Inputs
Poor Dipping facilities and chemicals for animals
5. Situation Analysis:
Economic Cluster
The economic cluster was characterized by political insecurity and a
hostile policy environment which has led to closure of hundreds of
companies since 31 July 2013. This has rendered thousands of people
jobless, recording the worst unemployment rate in many years. And
rampant corruption in the private and public sector has further
eroded the revenue base for Zimbabwe.
PDP must create an investor friendly policy framework to attract new
foreign investment and revive the crumbling industry in the country.
The policies must also provide incentives for employment creation to
alleviate the plight of those affected by company closures.
Secondly, the policies must provide for adequate funding for small to
medium scale enterprises (SMEs) to cater for the underprivileged
elderly, women and youths in our society.
Agriculture
Some areas have good soils and climatic conditions are suitable for
agriculture with abundant skilled labor coupled with many
hardworking people on farms and villages. Maize and tobacco were
the most popular crops for farmers.
But the major challenge was that most of the farming infrastructure
was dilapidated, with no funding for the farmers to invest in
agricultural. Generally, farmers were not able to secure loans for
agricultural activities because they had no security of tenure and
consequently, skilled labour has migrated elsewhere for jobs.
The resettled farmers on A1 and A2 models and former commercial
farm workers were the most affected groups.
Mining
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The Great Dyke has vast mineral resources but poor investment has
compromised mining activities, with prospective investors shunning
the local industry because of unclear government policies.
Apparently, poor investment in mining has directly affected the
livelihoods of youths and small scale miners. And gold panning has
become rampant, causing massive land degradation in various parts
of the country.
Chiadzwa is owned by foreigners and ministers, soldiers,
Manicaland is not benefiting.
Environment is being degraded and there is no effort to mitigate the
effects.
Citizens are being displaced without proper compensation
Raw material extracted and exported without creating any form of
reasonable industrial employment
Foreigners are being hired to do manual work while locals are turned
down.
Tourism
Participants were generally of feeling that Zimbabwe has capacity to grow
the tourism however the high country risk profile was affecting this sector.
Some of the issues raised in this regard include.
Police controlling/ manning border posts are frustrating tourists
Too many roadblocks along the highway.
Tobacco farmers are cutting down trees for curing to fetch
Poaching has increased.
Headlines of animals being poisoned and such other issues.
Social Cluster
Zimbabwe’s society has become deeply polarized on the basis of
political orientation, with citizens identified as MDC or Zanu PF. This
polarization has degenerated into segregation and violence mostly in
rural areas where chiefs and kraal heads openly deny opposition
supporters food aid and grain loan assistance from NGOs and the
Government.
PDP policies must address such social ills and create a free society
where all citizens live together in harmony and traditional chiefs
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provide services without regard to political, religious or ethnic
background.
Cultural issues
Group discussions commended cultural diversification and peaceful
coexistence by people of different religious orientation such as
traditional tribes, Christianity and Islam.
Education
Most people were fairly literate as the ordinary person had attained
the basic education of Ordinary Level.
But most schools were in a deplorable state, particularly the
infrastructure of schools in remote areas in the Province. And the
Government’s assistance was inadequate as most underprivileged
school children could not access the Basic Education Assistance
Module (BEAM). This mostly affected orphaned children in rural
areas.
Participants also noted that State Universities of provide access to higher
learning to thousands of scholars every year.
But lack of funding has remained a challenge as many female students
often resort to prostitution to raise money for food and accommodation in
nearby townships.
Health
Generally health personnel were properly trained but the medical facilities
at most clinics and hospitals were in a poor state, with an acute shortage
medicines in the country. In most instances participants highlighted that
the health facilities were under staffed leading to long queues and delays.
The present situation has been exacerbated by poor remuneration for
nurses and doctors in the public service.
Infrastructure Cluster
Agricultural infrastructure was badly affected by illegal gold
panning and massive deforestation due to veld fires and cutting
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down of trees by tobacco farmers. And poor roads hindered
development and business in most remote areas in the country.
PDP must devise policies that promote sustainable use of natural
resources such as land, trees and minerals. The policies must provide
for educational programs for communities to appreciate the
importance preserving the environment and ensure that people
religiously observe tree planting day on national calendar.
Road construction must also get top priority on budgets for local
authorities as a matter of policy, in order to facilitate development in
marginalized rural areas and bridge the gap between the rich and
poor.
Some of the specific important highlights
(a) Kariba Dam
Generation of electricity, tourism and creation of employment were
the strengths of Kariba Dam.
But political instability has affected the tourism industry at Kariba.
And the Dam Wall now requires reinforcement to avoid collapse and
possible loss of life in surrounding communities.
(b) Grain Marketing Board
GMBs symbolize food stability, employment and security for local
farmers.
But food security has become an illusion which was far from reality
as the silos were empty because of poor yields following the chaotic
land reform and destruction of commercial farming.
Rights Cluster
Participants were generally of the view that education and health
were enshrined as basic human rights in the constitution, access of
the same was still problematic because of poor funding on the part of
the government. It’s regrettable to note that hundreds of primary and
secondary school age children often dropped out of school because
the parents could not afford the to pay school fees. And proper health
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care services remained beyond the reach of the poor because of
prohibitive medical costs and the long distances people in rural areas
walk to access the nearest clinic.
PDP must craft policies aligned to the rights of citizens to acquire
basic education and access health facilities, as given in the
constitution. The policies must provide for free primary education
and assistance for orphaned or underprivileged children by ensuring
adequate funding for BEAM.
PDP must go a step further and press local authorities to give top
priority to the construction of more schools and clinics in remote
areas.
Security
Security apparatus discussed by participants included the Zimbabwe
Republic Police, Zimbabwe National Army, Central Intelligence
Organization and the Zimbabwe Prison Services.
Generally, external forces had a fair understanding of the rule of law
and the majority were non-political and keen to provide services. The
external security forces were able to maintain a low crime rate in
Zimbabwe.
The major challenge for the forces was the shortage of resources and
poor remuneration, which has affected service delivery.
Secondly, the top brass of the external forces were apparently
partisan and aligned to the ruling Party, rather than the State.
Thirdly, corruption has become commonplace amongst members of
the external forces most probably because of the poor salaries.
Internal security refers to personal security of self and the voter.
Group discussions noted that the prolonged suffering of the masses,
instability of the economy and growing frustration had heightened
the people’s determination for real change in the country.
But the non-existence of a clear roadmap and execution plan
remained the biggest challenge for the people of Zimbabwe. This
structural weakness has made it impossible for the opposition and
civic society to strategically organize pockets of resistance within the
MDC T and Zanu PF.
Nonetheless, the existing support base, frustrated voters and the
growing number of disgruntled supporters of the ruling party
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presented an opportunity for electoral victory in the foreseeable
future.
Overall Proposal of the role of government in development
Allow public sector to run its business, profits and take money from
business thru tax, bonds, royalties, corporate social responsibility.
Government redistributes and share it towards the vulnerable.
Government‘s role must be to allocate some resources towards the
towards vulnerable e.g people living with disabilities, the aged and
orphans etc.
Participants were of the view that the government must manage
parastatals and state enterprises.
They were also of the view that the state must facilitate redistribution
of wealth.
Government must promote investment in the social sector.
The poor are now financing the rich. e. g. vat, custom duty, a
government of the people, by the people must reverse this.
The state must also ensure societal consensus, special groups
representation and participation of every citizen in policy
formulation and decision making.
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