Tag Archives: Emerson Mnangagwa

Zimbabwe’s latest crisis: it’s the economy – and politics, stupid!

The images of economic crisis in Zimbabwe are all too familiar. Queues for petrol and cash, commodity hoarding, parallel markets in currency, rising inflation and so on. It all seems reminiscent of the dark days of the mid 2000s, in the build-up to the full-blown crisis of the hyperinflationary collapse of 2008. This was not meant to be how the much-hailed second republic started out.

Bill Clinton’s 1992 election slogan, ‘it’s the economy, stupid’ does ring true. Years of economic mismanagement, deep corruption and failure to invest, combined with sanctions, credit embargoes and investment freezes, have taken their toll. But the current crisis is also to do with politics, both domestic and international.

The dimensions of the economic crisis

Tony Hawkins, an economics professor at the University of Zimbabwe, recently gave a widely-circulated talk to the British Council on the economic travails of Zimbabwe. There was much to agree with in his summary of the situation.

The economy is uncompetitive, he argued, not helped by the appreciation of the US dollar by 17 percent since dollarization, the huge loss of value of the South African Rand and rising oil prices. Estimated 14% revenue increases from tobacco, gold and other minerals are offset by a massive hike in state expenditure, up 57%, exacerbated by election commitments to public servant wage hikes. The budget deficit has ballooned to $3.3 billion, with a projected trade gap of around $2.5 billion.

What’s more, he said, the total national debt now stands at a staggering $22 billion, now more than the GDP. Government borrowing continues to grow, crowding out the private sector, and putting pressure on available finance for investments, as people seek cash on the (expensive) parallel market. Inflationary pressures are also increasing dramatically therefore, with money supply far exceeding (formal) GDP growth.

But, despite the value of this description (repeated of course in numerous assessments by the IMF, the World Bank and other economists), his diagnosis of causes was only partially on target, and his solutions missed crucial dimensions.

Causes were laid largely at the door of domestic economic policy (or lack of it) and corruption by the ruling party. This, as is well documented, is a key part of the story. From Gideon Gono’s use of the reserve bank as a political tool in the ‘casino economy’ years to the massive expropriation of diamond resources, both show how the Zimbabwean economy has been destroyed from within.

This has not been the only story. The sanctions imposed following the land reform of 2000 took their toll too. While only targeting select individuals, and withdrawing aid from government led programmes, this signalled diplomatic disapproval from the West, and it had a major impact on patterns of economic support.

Aid programmes still continued but under a humanitarian label channelled through NGOs. But much more significant was the withdrawal of international finance and credit lines. This had a devastating impact and, even if not directed by official sanction policies, were their direct consequence. Despite the easing of diplomatic tensions in the post-Mugabe era, and the charm offensive that Mnangagwa has been engaging in from Davos to New York, the situation has not fundamentally changed.

Hawkins does point to the problem of ZDERA (the Zimbabwe Democracy and Economic Recovery Act of 2001, amended this year) in particular. This is the US law that prevents the US government supporting Zimbabwe at the IFIs, without implementing a set of political reforms. In the coming months, this will likely prevent the US rep at the IMF backing a recovery plan, making the position of others on the IMF board crucial if any changes to support Zimbabwe’s recovery are to be realised.

Reforming the economy

The new finance minister, Mthuli Ncube, knows all this, but does he have the leeway to change course? He is severely hampered by the political legacy of sanctions and other ‘restrictive measures’, and deep distrust across international actors. However, there have been some good signs. His interviews with Bloomberg and speeches around the world have mostly been impressive, and suggest that he is committed to a major economic restructuring.

Some of this will be tough, and will be highly political. A test of the new government’s commitment will be how far he is allowed to go. Already attempts at introducing taxation measures have resulted in protests. What happens when he is forced to cull the public sector, massively reducing the salary bill, or overhaul the currency system, which benefits those dealing on the black market, including powerful individuals well connected to the political system?

Clearly the stop-gap measure of a “multi-currency” environment that followed the abandonment of the Zimbabwe dollar and the adoption of the US dollar is no longer working. Local ‘bond notes’ were supposed to be backed by external hard currency finance, but are clearly no longer, and are fast losing value. Stalling the massive flow of hard currency out of Zimbabwe is vital, and this means ending the pretence of equivalence between greenbacks and bond notes. Sticking to the US dollar in a period when US protectionism is boosting its value is risky too, as it makes everything absurdly expensive. But setting up a new currency in such straitened times is not wise either, given the low levels of confidence in the economy.

What to do? Given the dire experiences of structural adjustment from 1991 – which in many ways set the scene for much of Zimbabwe’s current malaise – making the case for IMF stabilisation intervention, combined with a HIPC-style debt relief package, with all the raft of expected conditionalities does seem rash. But there really doesn’t seem to be any other option currently. The Chinese are fed up with Zimbabwe given its failure to pay back loans in the past, and the ‘socialist solidarity’ line has worn thin. Reluctantly, this may be the only route.

The centrality of the rural economy

Assuming a political route to reform can be created, it therefore matters a lot what such reforms look like, and how they are implemented (lessons from Greece and others of course). Where I fundamentally part company with Hawkins’ analysis is his disparaging rejection of the importance of the rural economy. Like so many conventional economists, he focuses on the urban, industrial sector, forgetting that this is dependent on a wider economic system that remains substantially small-scale, informal and rural. The distinctions between ‘formal’ and ‘informal’ economies in Zimbabwe are irrelevant today: most of the economy is ‘informal’, and that’s where livelihoods are made.

In the rural areas this is especially so. And, as we have shown in our research over many years, this is vibrant, growing and generating employment in significant ways, particularly when linked to land reform areas that are producing surpluses and creating spin-off linkages in local economies. It is far from dead, as Hawkins suggests, but it is different to what went before. This is not backward-looking rural traditionalism, bound by archaic cultural norms, as Hawkins seems to suggest, but the new economy; one that everyone must get used to and support. For sure, it is the ZANU-PF support base, and the reason they won the parliamentary elections, but that makes it even more important that the government gets its reforms right for rural people, as well as the urban middle classes.

The small steps towards a positive dynamic of rural growth spurred on by land reform however stalls dramatically when the wider economy is in crisis. With no liquidity, investments dry up, and with a lack of credit, the financing of new operations cannot occur. If inflation kicks in, as it is now (some estimate that annual inflation is touching 50 percent already), then the value of goods is uncertain, and economic transactions are risky. The result is that the economic dynamism ceases, and livelihoods are affected up and down value chains, from agricultural producers to traders to processers to wholesalers to retailers and consumers.

This is what happened in the mid-2000s, and again is what is happening now. But rather than dismiss rural people and areas as economically backward, somehow culturally unable to engage with a modern economy, policymakers and economic advisers need to appreciate the potential of the agrarian economy, and encourage investment. Simply wishing an industrial revival without a core agrarian productive base supporting the mass of the population is foolish, especially in Zimbabwe’s context, as a small economy operating in a highly competitive global environment.

Wider stabilisation, debt write-offs and addressing inflation and currency instability is vital at the macroeconomic level and must be central to Mthuli Ncube’s agenda. But his next step must be to set up the type of investment strategy that allows a dispersed, largely informal economy to thrive, and contribute to growth and employment in multiple ways for long-term, sustained and equitable recovery.

Only then will links be made that allow the industrial and service sectors to thrive, and taxation and so government revenue raising to be applied. The post land reform economy does not look like that of the 1990s in the earlier adjustment era, or the post UDI sanctions period in 1980. Big ticket ‘modern’ investments in agriculture, tourism, maybe even some industries, will be important, but they must not undermine or take attention away from the key challenge, which is supporting the real, predominantly rural, economy where most people make their living.

It’s politics, stupid!

The on-going negotiations with the IMF and the wider diplomatic and donor community are of course not just about economic restructuring, investment and financial prudence. They are also (of course) about politics. With Nelson Chamisa and the opposition MDC still not recognising the results of the elections, their lobbying of western governments continues.

Their strategy is unclear, but it seems to be to encourage the US in particular to maintain sanctions and the ZDERA law, with the aim of extracting political concessions for the long-term. You can see the rationale, but the consequence is that the economy is nose-diving and people are suffering; if not from cholera due to lack of investment in urban infrastructure, certainly from growing economic hardships, even if this is only queuing for petrol at night. This may backfire, with the opposition seen as holding the country hostage, undermining recovery for political gains.

Calls for demilitarising the state apparatus as part of conditions are appropriately central to many demands. The latest bogey-man for the international community is of course the Vice President General Chiwenga. But, with ZANU-PF, despite the new, PR-branded version that President Mnangagwa is projecting, a securitised state is likely to persist, even after the army has returned to the barracks or swapped uniforms for suits. A technocratic-military state is a feature of the current dispensation, and by some seen as a positive route to implementing a state-led (aka ‘command’) developmentalist policy, in the mode of Kagame in Rwanda or previously Meles in Ethiopia.

Where next?

There are divisions amongst the western diplomatic community on how to move forward. Some take a pragmatic stance and argue that a stabilisation bailout will create stability, and allow the economy to function, arguing that conditions for future elections and a deeper embedding of (western-style, liberal) democracy will emerge only when the country is not in crisis mode. Others make the case that a crisis of legitimacy following the elections means that this is the moment to exert pressure on Mnangagwa and exact the maximum concessions in favour of the opposition’s stance. Economic crisis is a price worth paying if political reform emerges, goes the argument. Within ZANU-PF and the MDC, as well as commentators not linked to any party, all shades of opinion exist.

What all agree is that a return to 2007-08 is not desirable, and that action to avert this needs to happen soon. And I would add: a focus on supporting the informal sector and the agrarian economy – and the linkages beyond – is vital to any way forward.

This post was written by Ian Scoones and this version first appeared on Zimbabweland.

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Military muscle and populist promises: authoritarian populism in southern Africa

Last week I was at an amazing gathering at the ISS in The Hague, which brought together nearly 300 activists and academics to discuss the origins and implications of authoritarian populism. A short reflection on some of the themes emerging was published this weekend in openDemocracy.

Whether in the form of Duterte or Trump, Maduro or Mugabe, Modi or Erdogan, the rise (and sometimes fall) of authoritarian regimes with populist, sometimes religiously inflected, often militarily enforced, is evident all over the world.

In the build up to the event, we published a series of articles on openDemocracy with cases from India, the US, Myanmar, Brazil, Indonesia, Colombia and South Africa. The parallels are striking, although the contexts and political implications are very different. Do take a look. More from Russia, Guatemala and Colombia are coming soon!

The focus of the Emancipatory Rural Politics Initiative is the rural and agrarian dimension. Much debate has focused on urban metropolitan areas, yet the support for many authoritarian populist leaders is rural, and the consequences of neoliberal neglect, extractivism and resource grabbing is keenly felt.

Among the 80 odd papers prepared for the event (all available via the Transnational Institute, one of the co-hosts), there were quite a few papers from Africa, including several from Zimbabwe. How does Zimbabwe fit within this wider picture? Not obviously is the short answer.

Mugabe’s economic populism was well known, with land reform the centre-piece, and anti-democratic, often militarised authoritarianism has always been central to ZANU-PF’s political culture. Yet, Mugabe’s anti-imperialist rhetoric and socialist flag-waving did not put him in the group of regressive right-wing regimes.

Indeed one of the ambiguities of the term, authoritarian populism, is the difficult match to the now outdated categories of left or right. With liberation movement parties still in power in southern Africa, a particular form is evident. Former president of South Africa, Jacob Zuma, had a well-honed populist streak, but maintained control by leveraging power in different ways through a ‘captured’ state. Julius Malema the firebrand Economic Freedom Fighters opposition leader is the supreme populist, with often extreme authoritarian tendencies.

It’s not surprising given their histories that both in Zimbabwe and South Africa, land is central to the populist discourse – linking in turn to nationalist narratives and liberation struggle commitments. With debates about ‘expropriation without compensation’ this has risen to a higher gear in South Africa, and parallels (usually wildly inaccurate) with Zimbabwe are frequently made.

Now with Zuma and Mugabe gone, what are we to make of Ramaphosa and Mnangagwa in this frame? Both have been spouting populist promises in their first months in power, but this is fairly standard political fare, and large pinches of salt are recommended. Both also appear to be committed to a business-friendly, open investment economic position. Both countries are ‘open for business;’ presumably including both leaders’ businesses, of which there are many.

It is too early to see whether a new state project is being cultivated, and whether this could be described as ‘authoritarian populism’, as Zuma and Mugabe clearly were, although with very southern African flavours. Key will be to understand the nature of underlying power, and how accountable this is. Neither have faced national elections as yet, so we don’t yet know how popular the populist pleading will be. While South Africa’s democratic roots run deeper, the concerns validly expressed about the military influence in Zimbabwe are real.

Much discussion of southern African politics – and perhaps especially Zimbabwean – is rather insular. However, the intersections of authoritarianism (in various forms) and populism (also with many dimensions) is a phenomenon across the world. Reflecting on other settings may help us understand how military muscle and populist promises mix and match in the Zimbabwe setting. It’s often not a pretty sight.

Effective resistance and opposition mobilisation with new styles of emancipatory politics are needed to counter authoritarian populism globally, but currently in Zimbabwe this doesn’t look likely, as in its early days Nelson Chamisa’s MDC seems to be exhibiting some of the worst authoritarian populist traits, this time with an evangelical Christian religious tinge.

As the election year in Zimbabwe unfolds, making sense of the new politics will require some new lenses, and different responses. Thinking about authoritarian populism and how to confront it across the world may help focus thinking in Zimbabwe, so do check out the many materials emerging from the ERPI.

This post was written by Ian Scoones and first appeared on Zimbabweland

Illustration is by Boy Dominguez produced for the event, titled Populismo

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Two speeches for ‘new era’ Zimbabwe

From http://www.zimbabwesituation.com

Over the last few weeks I have been in Zimbabwe, visiting our field research sites in Mvurwi, Matobo and Masvingo. It has been an exciting period, with fast-moving developments. The euphoria of November has given way to the realism of December, and with this some emerging sense of what the ‘new era’ might bring.

Two speeches have dominated the news – first the inauguration speech by President Mnangagwa and, second, the budget speech last week by reinstalled finance minister, Patrick Chinamasa. Of course actions must follow words, but overall I find the tenor and content broadly positive, and I remain cautiously optimistic that a corner has been turned.  In this blog, I will offer some excerpts from and comments on both, focusing only on land and agriculture issues.

The inauguration speech was well crafted, aimed to send messages to different audiences from each paragraph. Following a respectful acknowledgement of the former president Robert Mugabe, he rejected the sanctions imposed on the country, creating a ‘pariah state’. He argued for letting ‘bygones be bygones’ and for the need for everyone to accept the historical realities and politics of the country, particularly in relation to land reform. Land – and the irreversibility of land reform, but the importance of investment and effective utilisation – was emphasised right up front in the speech in the following important passage:

“…given our historical realities, we wish the rest of the world to understand and appreciate that policies and programmes related to land reform were inevitable. Whilst there is a lot we may need to do by way of outcomes, the principle of repossessing our land cannot be challenged or reversed. Dispossession of our ancestral land was the fundamental reason for waging the liberation struggle. It would be a betrayal of the brave men and women who sacrificed their lives in our liberation struggle if we were to reverse the gains we have made in reclaiming our land. Therefore, I exhort beneficiaries of the Land Reform Programme to show their deservedness by demonstrating commitment to the utilisation of the land now available to them for national food security and for the recovery of our economy. They must take advantage of programmes that my Government shall continue to avail to ensure that all land is utilized optimally. To that end, my Government will capacitate the Land Commission so that the commission is seized with all outstanding issues related to land redistribution”.

The following comment on compensation was the one that was picked up by the international press. It of course represented no shift in position, as compensation for ‘improvements’ on the land (but not for the land itself) has long been accepted, although payments have been extremely slow:

“My Government is committed to compensating those farmers from whom land was taken, in terms of the laws of the land. As we go into the future, complex issues of land tenure will have to be addressed both urgently and definitely, in order to ensure finality and closure to the ownership and management of this key resource, which is central to national stability and to sustained economic recovery. We dare not prevaricate on this key issue.”

Reference to the ‘laws of the land’ clearly relates to the Constitution, which as an all-party agreement confirmed this policy position. What was different in this speech was the tone, and the public commitment. While policies may have not changed, the PR machine and sense of urgency clearly has. This is excellent news, given that compensation has long been a major outstanding issue, preventing closure on the land reform, and resulting in on-going sanctions being applied around still ‘contested land’.

While the inauguration speech was inevitably thin on detail, more was offered in the budget statement last week. Chapter 7 focused on ‘support for agriculture’, with the budget rather optimistically expecting the sector to grow by 15.9% on the back of a really good season. Re-emphasising the importance of agriculture in the President’s inauguration speech as the ‘mainstay’ of the economy, issues of land utilisation, land tenure and boosting production were emphasised.

Chinamasa’s statement summarised the challenges of ‘new farmers’ thus, “On average, the new farmer had been encountering constraints which became a hindrance to full productive utilisation of the land, bordering around capacity, resources, and elements of insecurity over tenure. The result was much idle farmland, and unaccountability on the part of the farmer with regard to use of acquired land holdings for farming in support of domestic food security, supply of agro-inputs and exports”.

A number of remedies were offered:

On land tenure: “To give confidence to beneficiaries that their occupancy is guaranteed, and cannot be withdrawn willy-nilly, through the indiscipline of either youths, political leaders, traditional leaders or senior officials, Government is undertaking to institute measures to strengthen the legal standing of Offer Letters and 99 Year Leases. This enables the much needed farm investments, improved utilisation of land and, therefore, production”. This is good news, and also a relief that the lease/permit option remains preferred over a mad titling spree advocated by some. The budget emphasised the need to speed up farm valuations and surveys, so that the issuing of leases can be speeded up, supported by the Surveyor General (and drones!).

On land audits and under-utilised land: Through the process of land auditing “issues of multi-farm ownership, idle land and under-utilisation of land are going to be identified. Idle land represents dead capital and promotes speculative tendencies, if not checked on the part of the land holders. As a result, the economy loses on optimal agricultural production”. The Zimbabwe Land Commission is charged with this responsibility, and the budget speech urged the long-awaited audit to move forward.

On Command Agriculture: “The thrust is on full, efficient and sustainable utilisation of allocated land, for increased investment on the land and production”. The role of ‘anchor companies’ (such as Sakunda) as part of a strategic public-private partnership is emphasised,. Such companies provide “access to capital and markets, sharing of best practices, farming knowledge and transfer of expertise, mutually beneficial to both parties. More specifically, the identified anchor companies have the critical roles of providing access to capital, training the small scale farmers and coordinating marketing, including exporting”. Interestingly, Command Agriculture is seen as a “transitional inception intervention”. There is a recognition that, pending allocation of leases and the release of private finance (especially for the A2 farms), collaborative financing models, involving the state and the private sector are needed. “In the interim, the new farmer would need to be incubated as they learn the ropes and overcome learning-by-doing inefficiencies that entail yields lower than would obtain with best practices, making a case for transitional producer prices higher than import parity levels.” As discussed in an earlier blog, a key issue is how long – and how politically necessary – such an ‘interim’ phase is required, as the cost of defaults and $390 per tonne of maize is huge.

On ‘leakages’ and abuse: An extended section of the speech focused on leakages in the Command Agriculture and Presidential Inputs Scheme, recognising the problems of corruption that have been widely reported. A decentralised electronic data management is proposed, along with the capacitation of Agritex offices and ‘command centres’. Investigations of abuse are promised, whereby “culprits will be quickly brought to book”. Clearly Command Agriculture is a high-profile plank of economic policy for the ‘new era’ (at least for now) – extending from maize and wheat to include soy beans and livestock in the coming season. In line with the wider rhetoric around stamping out corruption, military discipline and well-designed logistics operation will be applied it seems, with Air Marshall Perence Shiri firmly in charge.

On loan repayments: The budget speech highlighted (in the context of course of a very good rainfall season) the loan repayment pattern of Command Agriculture. For maize, “loan recoveries are running at 66%, with the Command Agriculture Revolving Fund registering repayment receipts of US$47.4 million in loan recoveries from farmers. This is against an anticipated repayment target of US$72 million. Out of the 50 000 farmers contracted to produce maize under Command Agriculture, 33% fully paid their loan obligations, with 22% having partially paid their obligations, while recoveries others are being made as they deliver to GMB.” A broadly similar pattern is reported for wheat. Let’s see what the final figures are once all crops are delivered, but for a state loan scheme such returns are not bad, although clearly could be improved, with over 10,000 farmers not having paid anything by 23 November. To that end: “To encourage our farmers to continue paying back their debt obligations, all fully paid farmers are being prioritised in accessing inputs under the 2017/18 Command Agriculture programme.” This sort of financial discipline is encouraging, and is certainly reflected in conversations I had with a number of A2 farmer beneficiaries of the scheme who are committed to repayments, and are actively being chased for them, despite their apparent status or political connections.

On private finance: With Command Agriculture presented as temporary, what alternatives are suggested? “As we move forward, private sector and commercial bank finance will be required to fully take up its rightful role of adequately underpinning agriculture, particularly, A2 commercial farmers”. For this, the A2 99 year lease is seen as crucial, although continued politicking around this continues. For smallholders, contract farming arrangements are highlighted.

On compensation: Not much detail was offered here, other than a recommitment to paying compensation in line with the Constitution. The statement indicated monies were to be set aside, both for normal compensation and for those areas appropriated that were under bilateral investment treaties. The amounts were however not specified; clearly there is hope that donor support and debt rescheduling will help.

In sum, the policy directions proposed by both speeches are certainly on the right track. The opposition complained that their ideas had been stolen, highlighting a converging consensus on many policy issues. The challenge will be to make the grand ambitions happen, so far with extremely limited resources; although of course with the hope of new injections of donor funds and lines of credit. Central to the challenge for land and agriculture will be to combine all elements in a new, effective land administration and financing/support system. The new minister of Lands, Agriculture and Rural Resettlement and his team, as well as the independent land commission, all have their work cut out. Hopefully some of the ideas shared in this blog and from our research over the years will help in charting a way forward.

This post was written by Ian Scoones and first appeared on Zimbabweland

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The politics of reform in Zimbabwe

chinamasa-02

Last month two major reports came out on economic and political reform in Zimbabwe. The first from Chatham House, looking at economic reform and the question of re-engagement by international actors, and the second, from the Institute for Security Studies, looking at similar themes, but focusing more on the political challenges.

They come to rather different conclusions. The Chatham House report argues strongly for re-engagement by the West and the International Finance Institutions. The ISS report is more sceptical, arguing that Zimbabwe’s reforms could be seen more of an exercise in pretence, and may help prop up the regime.

We have heard these arguments before. The pragmatists, arguing for engagement with the inevitable response that this is appeasement and those arguing for a major overhaul, but without any clear plan for how. Neither of these reports fall firmly into these stereotypes. These are both written by commentators with deep knowledge of the situation.

However, I found the Chatham House report definitely the most convincing. The authors are sanguine about the challenges, but realistic about what needs to be done. Their headline message is that “International and regional governmental engagement does not guarantee the success of long-term reform, but continued isolation will almost certainly lead to the failure of reforms to take hold”.

They point to the very real shifts that have occurred in the last year or two, often not accounted for in commentary on Zimbabwe. In part this is a response to the desperate economic situation, but also a sense of greater realism amongst elements of the ZANU-PF elite. The Chatham House report highlights the words of Patrick Chinamasa (pictured above), who has been leading the negotiations with the IFIs, among others. In a London speech in July he said:

“We are doing everything in our power to improve the operating environment in Zimbabwe to attract foreign direct investment. What the country needs right now is capital – new money. The debts and liabilities are there, and we need a strategy that can make the economy grow. And for the economy to grow we need foreign direct investments, which is why we are involved in a strategy to change the operating environment and we’ve moved mountains in this regard.”

The economic situation is certainly dire. The appreciation of the US dollar has made Zimbabwe’s exports less competitive. Manufacturing has declined yet further, along with the tax base, and so government revenues. This means paying civil servants (83% of public expenditure) is more and more difficult. Attempts to improve liquidity through creating treasury bills, bond notes and the rest have met with protest. Banks have gone bust, cash is in short supply, and hard currency is leaving the country in large amounts as the country becomes the region’s ‘bureau de change’.

Continued restrictions by the US government under ZDERA (the Zimbabwe Democracy and Economic Recovery Act of 2001) means currency negotiations with the US Federal Reserve are prevented, and the economy must rely on exports, remittances, foreign investment and credit lines, all of which are under pressure. Confidence is at a low ebb, as political turmoil persists, and this in turn puts off investors, who fear yet more disruption around the next elections, and as a result of any succession battle for the presidency. The Chatham House report lays out the details, with some stark facts and figures (although as ever misrepresenting the data on food security – see recent blogs on this).

From liberation to liberalism: what prospects for reform?

This is the context that is forcing change. Chinamasa represents what the Chatham House report authors call a “transition from hard-line ‘patriotic liberationism’ to a more pragmatic economic liberalism”. The ISS report agrees that Zimbabwe has “the technical competencies to deliver” but points to the political challenges. The report observes: ”political support has been partial, inconsistent and largely tepid, underscoring a dawning reality that the imperatives of retaining ZANU-PF hegemony, the inevitability of Mugabe leaving office and the related factionalism around succession fundamentally stifle prospects for reform and, by extension, narrow options for engagement”. It goes on: “engagement is selective, policy statements often incoherent and serious questions remain about government’s commitment to deliver”. It concludes pessimistically: “the course appears set for continued economic decline, internecine political machinations and growing potential for violence, resistance and repression”.

There are good grounds for such pessimism, but a more rounded examination, as contained in the Chatham House report, shows that there is more going on than many give credit for, and that the political struggles over what reform means are more complex. To date, the government has certainly made important strides towards IFI compliance, under extremely constrained circumstances. This has been focused on the public finances, including reforms of the banking sector, attempts at public wage restraint, parastatal reform and privatization, efforts to inject greater transparency and accountability into the mining sector, and implementation of Constitutional provisions around land compensation and audit. Not all of these interventions have been successful, and there have been popular and political backlashes. Many – rightly – remain cynical. But there has been a surprising energy and commitment. This is about economic, and crucially, political survival.

However, as the Chatham House report notes, such reforms are only the beginning. Many international players want to see more. For example, “A deep wage cut across the board, clarity and consistency on indigenization, and the finalization of 99-year leases” will be required, plus “measurable democratic reforms, including the alignment of legislation to the 2013 constitution, abidance to the rule of law and adherence to human rights norms”. This may all be a tall order, particularly in the febrile political atmosphere in the run up to the 2018 elections, meaning many in the international community and the wider opposition will remain unconvinced.

Currently Zimbabwe is in a bind. The constraints on both international public and also private investment are stifling any prospect of economic recovery. Many investors suspect that reforms will be affected by party political dynamics. As the Chatham House report observes: “Attempts to attract investors are hampered by the lack of apparent planning for Zimbabwe’s post-Mugabe political leadership, and a prolonged succession battle could be extremely risky, not just for the party, but also for the country”.

Despite these qualifications, the Chatham House report is upbeat. It notes: “even in a context of severe economic constraints – and despite some overlaps between party and government issues – the government continues to function, and is supported by a professional, albeit eroded, civil service. There is still an operational distinction between party and government, and the divisions in the party have not fully replicated themselves across the state. Zimbabwe’s institutional capacity is fairly robust. Parliament remains an important nexus for bipartisan debate and scrutiny of elected officials”. These are important observations, and often forgotten (see an earlier blog on persistent bureaucratic professionalism).

Political alliances for reform

If technocratic and institutional capacity is not lacking, political incentives for reform often are. Here the Chatham House report again offers a nuanced analysis. It points to two opposing forces, cutting across party lines. First, there are those who have incentives to support reform. This includes many in ZANU-PF and the military who have strong business interests. They are driving the reform agenda, and include many in the upper echelons of the party, as well as new opposition groups (most notably Joice Mujuru and People First). The military-business elite is crucial here, as they may be the ultimate arbiters in the succession battle. With revenues from the Marange diamonds drying up due to new regulations and reforms, and other patronage networks in decline, as the Chatham House report notes, they are likely to be vested heavily in improving the business environment, and so ally strongly with reformers in the party, notably Vice President Emerson Mnangagwa.

Others are implacably opposed to reforms, seeing these as an imperialist imposition. There are those in the G40 group within ZANU-PF who make this nationalist-populist argument. According to Chatham House, they are: “sceptical of economic liberalization and re-engagement, particularly with the Bretton Woods institutions, as they fear this will mean the end of ZANU PF’s historical ideological objective to create a de facto one-party socialist state with a ‘captive’ or ‘token’ opposition”. While anyone with a memory of ESAP has a right to be cautious, the need to revive the economy is also apparent to anyone.

There are those in the opposition parties, supported especially by diaspora groups, who argue strongly against re-engagement too. But for different reasons. They are relaxed about a liberalisation stance at the centre of reforms and advocate free market approaches, but feel that the international community is letting the regime off the hook. More chaos, more decline, they believe will make the transfer of power easier, at or before the 2018 elections. If the opposition had a vision and an organisational base, such a stance might be credible. But accepting continued suffering for unlikely political gain, is in my view highly  irresponsible.

The Chatham House report therefore calls for re-engagement, and a phased approach to reforms, recognising the limits of alternatives, and the dangers of not doing anything:

“The interests of the ruling party, of the citizens of Zimbabwe and of international stakeholders are not mutually exclusive. There is little doubt that one of the main incentives behind the current government’s apparent commitment to the reform agenda is party survival. But if this means measures to achieve a stronger economy and better livelihoods, there should be tangible improvements in social and economic rights – and maybe, in time, more space for promoting civil and political liberties. Other options have not worked. The opposition, for its part, is in a fractured state, and it is not clear whether any strong alliance will be forged before the next elections”.

Failing to engage, and persisting with outdated sanctions measures (the report in particular fingers the US’s ZDERA restrictions and Canada’s stance), could be disastrous, not only for Zimbabwe but for the region as a whole. The report argues “Avoiding renewed economic collapse in Zimbabwe is important for Southern Africa, especially at a time when economic resilience is weakening elsewhere in the region.”

I agree, which is why a pragmatic if politically-challenging way forward must be found. The Chatham House report certainly offers valuable pointers, if not solutions, and is well worth reading.

This post was written by Ian Scoones and appeared on Zimbabweland

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Zimbabwe’s political uncertainty continues

mugabe-at-airport

In Zimbabwe, a day not a week seems like a long time in politics. It is difficult to get a sense of perspective when so much is happening, and so fast. Just scanning the daily compilations made by the amazing Zimbabwesituation.com (what a service this has supplied since 2000!) is overwhelming, and being immersed in the day-to-day means that it is difficult to separate wood from trees.

Recent Zimbabweland blogs reflected on the popular #This Flag movements and wider protests, which seemed to have come from nowhere. They can of course as easily disappear, in the foment that is Zimbabwean politics. In recent weeks, as the state feared opposition groups capitalising on discontent, there was an attempted two-week ban on protests. This was in turn overturned by the High Court, as the Attorney General’s office provided an inadequate case. Meanwhile, on the back of the dramatic rejection of the President by his strongest allies, the war veterans, fears in the party about its base continue. Former Vice President, and war veteran heroine, Joice Mujuru’s rally in Bindura was nearly blocked, to the outrage of People First activists. And in the ranks of the wider opposition, Morgan Tsvangirai and Tendai Biti seem to be talking again, with ‘olive branches’ being offered and talk of alliances being once again rekindled. And of course the backdrop is the continued speculation about President Mugabe’s health, with the tracking of Air Zimbabwe’s UM1 to various destinations becoming an obsession for some.

On the land front, the attempts to create a new land administration system are being hampered by dispute, contention and continued lawlessness. The now Cabinet-approved Land Commission Bill, emerging from the cross-party Constitutional Agreement, provides a framework for audit, compensation and oversight (more on this on the blog soon), as well as the payment of lease fees, under a revised 99 year lease arrangement. But, perhaps inevitably, things are not settled. With volatile politics, seeking a stable, technocratic solution, rooted in laws and regulations, is almost impossible.

So what to make of it all? There are as many views as commentators, but someone who speaks from a non-partisan position, and on the basis of both distance and long, intimate engagement in Zimbabwe is Professor Stephen Chan, from the School of Oriental and African Studies at the University of London. In January this year he offered his views to the New York Times. He made the case for tentative re-engagement by the West, and a focus on the players within ZANU-PF:

Unpalatable as it appears, there is much to be said for swallowing hard and re-engaging with the regime….Should there be conditions for re-engagement? The West probably won’t be able to resist making calls for less opaque financial and political dealings. But the land issue is settled: There is no politically viable force that would seek to restore farms to ousted whites….The world will one day soon see the end of Robert Mugabe. But his party will likely live on, and it is within that party that, like it or not, the West must now find people with whom it can work toward some kind of viable future….

Much has changed in the 8 months since then. In his mid-August interview with the Daily News (reproduced below), his core argument of the need to engage, and the expectation that change will emerge from within ZANU-PF persists, despite the influence of the #ThisFlag movement.  Not everyone will agree with the analysis – and there are many in the original post’s comments section who don’t – but a hard look at the forces at play does help. I am sure, just as some of Professor Chan’s predictions from January turned out not to be true, so too with his prognosis here. But making sense of uncertainty is always a challenge. And the current situation is more than baffling to me at least. So, in the hope that it can shed light, here are the published extracts from the interview with Daily News Senior Assistant Editor, Guthrie Munyuki:

Q: We have seen ructions in Zanu PF over the unresolved succession issues, how are they likely to shape the future of Zanu PF?

A: Yes, these ructions will destroy Zanu PF as the party of liberation. The war veterans have lost faith in Mugabe. Joice Mujuru, a genuine war heroine, has been purged. Emerson Mnangagwa, a hero of the struggle, has been under sustained attack.

Those who will be left will have played no part in armed struggle. If that is the case, those who succeed Mugabe will need a successful policy programme, but all we see is struggle for succession and no policy programme.

If  Mnangagwa also falls, then the Zanu PF of the 2018 elections will not be the same party of the 1980 independence elections.

Q: At 92, President Robert Mugabe is considered to lack the stamina and energy he once had in keeping Zanu PF intact, does his age underline the current squabbling in Zanu PF?

A: There is no major leader anywhere else in the world who is Mugabe’s age.

In China, which also venerates age, you cannot become a member of the Politburo or become President if you are over 60. You must have done that in your 50s and then the President only has two terms, so it is impossible to still be President in your 70s.

But I think there is a misunderstanding here about age: it is not just that someone lacks the stamina and vigour of youth; it is much more that one takes into age the habits and mental processes of one’s own youth.

But a man who was in his 20s 70 years ago will not be able to understand the aspirations, technological environment, and complex future imaginings of those who are in their 20s today.

In a way, it doesn’t matter how much Zanu PF squabbles, if the president and the entire party lose touch, at one and the same time, with its living liberation history and with the ability fully to understand the needs and aspirations of very young people.

It then loses its past and its future and has only its squabbling present.

Q: Is there any role left for him to play in keeping Zanu PF together when one considers that he is now being identified with the G40 faction yet previously he would, at least publicly, maintain a neutral role.

A: What is the G40? We in the West keep hearing of the G40, but we recognise not a single brilliant technocratic name; we recognise no one who has the intellectual capacity to rescue Zimbabwe.

Whether Mugabe will come down firmly on the side of the G40 or not, my worry is that the G40 will not bring successful policies to Zimbabwe.

Q: How significant is Mugabe’s fall-out with the war veterans and how do you see things shaping (up) in Zanu PF given the relationship that the ex combatants have with the military?

A: To lose the war veterans is a disaster for Mugabe. They fought. They sacrificed. Who else carries the mantle of the men and women who suffered in the field against huge odds?

I saw the Rhodesian war machine. It took huge courage to go up against that. Losing the veterans will mean, as I said, Zanu PF is no longer the party of liberation.

Q: For a long time Emmerson Mnangagwa  was touted as the likely man to succeed Mugabe but  there are doubts based on how he is being  humiliated by juniors in the party while Mugabe’s watches on. What’s your take on that?

A: I cannot read crystal balls. Perhaps this is not yet over. We shall see. But it is extraordinary to see a vice president treated this way.

Q: What options are there for Mnangagwa and how does his relationship with the military and the war veterans help him in his bid in light of the current attacks by G40?

A: Mnangagwa retains close links with the military, past and present.

To alienate him may be to alienate very powerful other people. But a coup would be very bad for Zimbabwe.

Whoever is president of Zimbabwe should be something for Zimbabweans to decide, not men in uniform. But I do think Zimbabwe is entering a tense moment.

Q: The economy has remained in the doldrums, leading to strikes and protests as well as suggestions that Zimbabwe could have its own Arab Spring; Is Zimbabwe ready for this?

A: There will be no Arab Spring. Besides, the Arab Spring brought nothing to the people of north Africa and only untold suffering to the people of Libya and Syria.

People can wrap as many flags around themselves as they like. This battle will be fought in the great institutions of the country. Zanu PF is one such institution. The army is another. I hope the judiciary will be another. And, if the church is to be an active institution in all this, it will take more than just one single Pastor.

Q:  Can the opposition political parties profit from this situation?

A: The opposition parties have nothing I recognise as viable policy platforms either.

Q: Is their grand coalition possible given that they seem to be hesitant and overly cautious in going towards this route?

A: There will be no grand coalition.  The opposition leaders are content to be princelings in their own courts. They are afraid that one of them might indeed become king.

Q: Zimbabwe’s face of the opposition for 16 years, Morgan Tsvangirai, is suffering from the cancer of colon, how does this impact his party’s chances in future elections?

A: Tsvangirai will no longer be a force in Zimbabwean politics. He has made his mark in history. He was a very brave leader of the opposition, and a far from perfect prime minister.

Q: Do you see him having a role in the 2018 elections?

A: No powerful or decisive role whatsoever.

This post was written by Ian Scoones and appeared on Zimbabweland

 

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The Mujuru manifesto: Zimbabwe’s 2018 election battle gets going

Zimbabwe’s 2018 election battle started in earnest last week, with the publication of Joice Mujuru’s ‘manifesto’. Although her People First party has not yet been launched this is a clear signal that it will be soon. Amongst the new acronyms and the big promises, the important question is what alliances will be struck with whom, and whether this is the basis for a genuine opposition that can dislodge the hold of ZANU-PF.

Joice Mujuru was unceremoniously thrown out of ZANU-PF only at the end of last year by a faction led by Grace Mugabe, and closely linked to the current Vice President Emerson Mnangagwa. Once President Mugabe’s favoured successor her fall was rapid. Joice Mujuru was a ZANU-PF stalwart with a strong track record dating from her heroism in the liberation war, where she took the nom de guerre, Teurai Ropa (spill blood), reputedly gunning down a Rhodesian helicopter in a fierce battle. Before her fall, she was Vice President and a leading business person, taking over her husband’s empire after he died in mysterious circumstances in 2011. Solomon Mujuru, a general and also a war hero (known as Rex Nhongo and commander-in-chief of ZANLA), was a key figure in the post-independence political mix, but had fallen out with key members of ZANU-PF.

Since December, Joice Mujuru has bided her time. Along with her, a number of key members of her ‘gamatox’ faction were expelled too. Her team have also been discussing with the various factions of the split MDC opposition too, and the ‘manifesto’ is the result. Some in the MDC have cried foul and argued that it has been plagiarised, others are looking to new alliances that might bring the opposition together.

So beyond the new acronyms (BUILD – Blueprint to Unlock Investment and Leverage for Development; RAMP – Remove All Measurable Pitfalls and PEACE – Presidential Economic and Advisory Centre for Excellence), what does the short manifesto say? In many respects there is indeed not much to distinguish it from other offerings from other parties, including ZANU-PF. In his recent speech to parliament, Mugabe himself offered a ten-point plan for investment, inclusive growth, tackling corruption and so on that was barely different in key aspects. The government’s ZIMASSET programme offers an ambitious – some would say unrealistic – plan to do the same. And the MDC opposition’s own plans, and own acronym’s, of ART, JUICE and the rest are all very similar, and many opposition commentators have welcomed the new document. Everyone painfully realises that accountable institutions and new investment in the economy are the key.

But you have to look beyond the general statements to the more subtle emphases and associated mood music to get to the differences. Mai Mujuru’s manifesto, as Alex Magaisa points out, did not start with the classic ZANU-PF narrative centred on the liberation war. It’s mentioned, but not as the origin of all positions. The statement on ‘ideology’ covers all bases:

“We are national democrats, guided by the values of the liberation struggle, of self determination, self-dignity, self-pride, expressed through the adoption of market driven policies under a constitutional democracy, with the State acting as a facilitator and regulator to allow for a level playing field and provide equal opportunities for all.”

This moves beyond the ZANU-PF position of the nationalist state, but towards the more liberal version of a facilitating and regulating state, operating in the context of market-driven policies and the ‘rule of law’. There are important shifts on the discourse of being ‘indigenous’ that are significant too. Land in Zimbabwe is to be available for all those who call the country ‘home’, and the ‘indigenisation’ policies so favoured a few years back are to be relaxed to encourage investment. Of course all these are open to flexible interpretation, and a discourse of ‘home’ could be used to discriminate just as one of ‘indigeneity’.

The assertion of securing property rights and boosting investment has been interpreted by some as a swing to a ‘neo-liberal’ view, and away from a more nationalist perspective rooted in a developmental state argument. Certainly, the Mujuru faction has always been more ‘business friendly’ – they have plenty of businesses to protect and support after all – while the Mnangagwa group builds on the exposure to Chinese principles of development, with the hope that alliances with the East not the West will see Zimbabwe through (as yet unfulfilled, and with a shrinking possibility as China’s economy contracts). But these differences do not come out clearly in public positions or documents, and we have to look for more subtle inferences and indications to get a sense of underlying positions.

Some in ZANU-PF have accused the Mujuru manifesto of rejecting the land reform and proposing policies that will usher in a recolonization of land by whites. The Herald as the mouthpiece of the party is particularly shrill on this, as is Jonathan Moyo’s twitter feed. But I do not see this in the document. On land it is clear that the establishment of productive agriculture, based on secure tenure, is essential (the same as in Mugabe’s 10-point plan) and that paying compensation to those removed through land reform is crucial (as in the Constitution, and in current government policy – although of course only a small proportion has been paid and constitutionally this is only required for ‘improvements’ to the land). On land, Mujuru, just as the MDC claimed in their last election manifesto, seems committed to the land reform, but emphasises agriculture and productivity, as everyone else. Indeed, at face value, section 6 on land policy seems to have no differences with the current government position.

So it will be the interpretation and realisation of all these policies that will matter, not the documents themselves, as they are open to so much interpretive flexibility. This will depend on how alliances are struck, and who the constituency for any new political formation will be. These manoeuvres in the run-up to 2018 will be vital. ZANU-PF has maintained a constituency that includes large portions of the rural poor, alongside many of the new beneficiaries of the land reform. The MDC opposition parties failed to mobilise these groups, and did not offer a convincing stance on land and rural development, and instead relied on the traditional base of disaffected urban populations, and workers. For a range of reasons – including vote rigging, intimidation but also a failure to engage with rural issues – the opposition failed in 2013, and has imploded since.

A key question is whether People First – or whatever a new party emerges as – can develop a narrative around land and rural development that earlier opposition groups failed to do, and in so doing create an unstoppable vote drawn from the traditional ZANU-PF base. I do not see this appeal to the aspirant rural population – particularly those in the A1 farms, and their natural allies in the communal areas – coming through as yet. The political-economic analysis of Zimbabwe’s dramatically changed rural scene remains very weak across all parties, but as I have argued before, there is an important constituency out there ready to be enlisted, who neither are attracted to ZANU-PF’s tired nationalist discourse, nor the ‘return to commercial farming’ position of the MDC. But instead they will seek to ally themselves with a progressive political voice that understands the consequences of radical land reform, and how this has provided opportunities for a significant number of new, relatively younger, educated and aspiring farmers, well linked to urban and other economic and political circuits.

There are two other factors that will play heavily into the 2018 electoral drama, and will be central to this complex alliance building. The first is regional and ethnic political affiliation. With Mnangagwa and Mujuru potentially pitched against each other, we can see the split among Shona groups becoming more significant, alongside the longstanding Shona/Ndebele divide. This is of course unfortunate, but perhaps inevitable as individuals seek support. Alliance making across such divisions will be crucial, and may require links to and between different MDC factions for a solid electoral bloc to be created. Secondly, of course are alliances with the security services, the securocracy as Ibbo Mandaza calls it. The MDC opposition were of course rejected by the securocrats, some publicly saying they would not serve under a Tsvangirai leadership. But there are divisions now within the military-security elite that play into the new splits within and beyond ZANU-PF. For now, President Mugabe has retained a core group with known affiliations to Mujuru, but there will no doubt be plenty of behind-the-scenes discussions of who will ally with whom in the coming period. Joice Mujuru has promised ‘security reform’ in her manifesto, and this will no doubt please the donors she is wooing, but ensuring a stable transition that brings the security elite with her will be paramount, and having been intimately wrapped up in this political-military establishment with ZANU-PF for so many years, she knows how dangerous and challenging this will be.

While the policy statements will remain bland and general, appealing to everyone and no one, it will be this backroom politics and complex alliance building that will occupy people, and fill the bars and newspaper columns with endless gossip and speculation for the next few years. Hopefully this process of building alliances for the future, from whatever party, will not just happen in elite business-security-political circles as is the default, but will remember the wider population – the electorate – whose trust and commitment has to be sought. The majority of the electorate remains poor and rural, but with a growing group of emergent aspirants who could, if given the chance, drive a new political consensus. It’s going to be a rocky ride, but clearly Zimbabwe’s politics in the next while is not going to be dull.

This post was written by Ian Scoones and first appeared on Zimbabweland

 

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