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Hopes dashed in Zimbabwe as the economic crisis deepens

It is now a year since people came out onto the streets of Harare to celebrate the army-led ‘coup’s’ ushering in of a new post-Mugabe era. The year has not delivered the dreams and hopes of those on the streets, however, and now an economic crisis is enveloping the country once again.

Despite clear wins for ZANU-PF in the parliamentary elections, even in surprising places (see this interesting recent report focusing on Matabeleland), the July presidential elections between Emmerson Mnangagwa and Nelson Chamisa were disputed. In the aftermath, violence erupted on the streets and the ruthless backlash by the security forces resulted in civilian deaths that shocked the country, and the world.

The uncertainty surrounding the presidential elections, despite numerous international reports, has made international re-engagement difficult. The opposition has capitalized on this to try and push the Mnangagwa regime into concessions. Added to this, the failure to agree a long-term economic stabilization deal with the international finance institutions, so far, has resulted in an accelerating economic crisis. This has resulted in commodity shortages, a growth in a parallel currency market and rising inflation. As in 2006-08, the impacts on those in the cities, and particularly the middle classes, has become in the words of one commentator, ‘unbearable’.

The political roots of the crisis are becoming more and more openly debated. In an extraordinary outburst, presidential advisor Chris Mutsvanga named Kudakwashe Tagwirei, boss of the network of companies linked to Sakunda holdings, as getting preferential access to foreign exchange from the Reserve Bank and being central to manufacturing scarcities, particularly in the fuel market. Close ties to the political-military elite of influential business people who control the economy, and with this parts of the state have been exposed. Meanwhile, maverick politico, Acie Lumumba, the short-lived adviser to the new technocratic minister of finance, Mthuli Ncube, in a bizarre Facebook live broadcast made a dramatic set of allegations about RBZ corruption, the process of state capture and the role of ‘queen bee’ at the centre of the network. Social media speculation went wild, but these interventions only served to confirm what everyone knew already: some ZANU-PF factions and some in the security forces are intimately tied up with controlling oligarchic forces in the economy. This makes effective economic reform and stabilization extremely difficult, without getting rid of these networks of power and economic control.

In the midst of rising crisis, the MDC appears to be holding out for a renegotiation of power. But as Brian Raftopolous argues in a typically perceptive article, there are several problems with their approach.

“Firstly, as we have seen in other parts of the continent, crisis authoritarian states can maintain their rule for long periods of time through minimalist state forms of rule that combine a control of certain extractive forms of revenue with command over the central means of coercion. Moreover, as Paul Nugent points out, such states can combine coercive, productive and permissive forms of rule involving varying relations of coercion and consent and different episodes of negotiations and conflict between states and citizens. The reductionist view that economic crisis will deliver what the election could not is extremely precarious.

Secondly, the social base of the opposition, particularly in the now largely informalised urban sector, is likely to be further weakened by a deepening economic crisis. This is unlikely to result in more protests and a strengthening of the opposition presence in the public sphere. It could lead to a further retreat into individualised forms of survival and already well supported religious structures and their more optimistic ethereal futures.

Thirdly, the international pressure that the opposition is counting on will not take the forms of more open political conditionality in favour of the opposition. At present, key players in the international community are more concerned with keeping Zanu PF on the reform agenda than with any more open or surrogate support for the opposition as in the past. For many countries in the EU the stabilization agenda in countries like Zimbabwe remains a key factor in the face of all the changes in European politics, particularly around the massive migration issue that is currently dominating European politics.”

At the moment there remains a stand-off. While the government desperately seeks international political agreement for a stabilization programme, and the injection of liquidity into the economy, the opposition pushes for the maintenance of sanctions, holding out for political reforms and perhaps a sharing of power. It is a dangerous moment, with little sign of anyone shifting from entrenched positions.

Strangely, both main political parties seemingly agree on the broad contours of the way forward, and both are committed to a radical neoliberal reform package, with unknown, perhaps disastrous, consequences for the long-term. Currently debate on what types of reform are needed, and how Zimbabwe moves from this crisis mode is limited.

Raftopolous argues that, to move forward, “there is clearly a need for a new national dialogue, including but not just limited to, the major political parties”. The terms of any macro-economic stabilization programme alongside political reforms “should be the start of such a national discussion”, he argues, leading to “a serious critique of this currently shared economic policy”.

This is a hopeful, positive position that I share, but it currently has few backers, given limited evidence of progressive visions for economic policy from all sides. As argued before on this blog, unless a locally-developed response to the economic crisis emerges, rising inequality, lack of sustainability and capture – this time by new actors – will likely result. A future, resilient economy must therefore be rooted in the existing productive economy where most people work and gain a livelihood. Reform efforts therefore must focus on small-scale agriculture and the informal urban economy linked to area-based local economic development, and not expect large, external investments to do the job, even if they paper over the cracks temporarily.

Building long-term resilience for a broad-based economy that will reduce poverty and share wealth will take time. But small steps – most notably through providing reliable and cheap sources of funds to support farming and small businesses – can have a big impact.

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

Photo credit: Flickr CC, Baynham Goredema

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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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Post-election round up: what now for Zimbabwe?

I haven’t got round to doing a normal Zimbabweland this week. These are not normal times, and I have spent too much time following events on Twitter this last tumultuous week. So, again, I will offer some links to things I have found useful, even if I didn’t agree with everything in each article. I have also included some older links from Zimbabweland that relate directly to the dilemmas now faced.

Last Monday’s election produced a significant win for ZANU-PF in the parliamentary poll, largely due to the rural voters continuing to back the party, and the opposition splitting its vote, especially in Matabeleland. Overall ZANU-PF gained 144 seats and the MDC Alliance, 64. However, this represents a large swing to the opposition since 2013, but not enough to undo ZANU-PF’s grip on power.

There were a couple of independent candidates who won, and some upsets for some big party beasts (Mutsvangwa and Chinamasa being two), but also some disappointments for some progressive and inspiring candidates such as Fadzayi Mahere in Harare. In the local council elections the #This Flag leader, Pastor Evan Mawarire lost in his attempt to gain a local political hold.

Despite this being billed as the social media election, this may reflect more the ‘Twitter tyranny’ of the urban elites and others (including myself) who get a distorted picture. This is a theme developed by Hopewell Chin’ono. The rural masses who voted for ZANU-PF by and large do not follow Twitter debates, nor read blogs (although sometimes I am surprised). As discussed before so-called hashtag activism is significant, but only among certain groups. Instead, they look to their local candidates, and who they think can deliver.

Most eyes were focused on the presidential race between Mnangagwa and Chamisa. Here there was a much tighter race. Chamisa and the MDC Alliance announced even before the election that they had won, and continued to do so afterwards, fomenting fears of a stolen vote. Some perceived delays in announcing the results and on-going accusations of rigging of the elections in turn prompted riots on the streets by opposition supporters. The disastrous and disproportionate intervention of the military resulted in the killing of six, and further clamp downs on opposition support. David Moore gives an overview of the results and their aftermath.

On Thursday, the electoral commission announced that Emmerson Mnangagwa had won, and at 50.8% there would be no need for a run-off (Chamisa got 44.3% according to ZEC). In many ways, the outcome is not a surprise. We will see in time whether rigging took place, and if it did so whether it would have changed the result (there was a similar discussion after 2013 elections). The well-respected ZESN (Zimbabwe Election Support Network), a group of non-government organisations, produced an assessment that reflected the results announced by the ZEC, based on national sampling.

While offering many cautions, the teams of international observers regarded the election as adequate, if not ideal. Yes, of course, it was an uneven playing field with the incumbent making the running; yes the state media supported one party, while the private media largely supported the opposition; yes state resources were used to bolster the incumbent’s position and help with electioneering; and yes irregularities and delays were there. But, overall, nothing has been uncovered yet (and this may of course change) to dismiss these elections in the way some have been.

Indeed, most expected Mnangagwa and ZANU-PF to win handsomely, despite the energetic campaign of Chamisa and the Alliance, with their (not always welcome) backing from the expelled G-40 faction of ZANU-PF, most notably Jonathan Moyo via Twitter and latterly through Robert Mugabe (with his wife Grace close by) at the bizarre pre-election press conference.

It is important though to note how the gains made by the MDC Alliance are significant. Hopefully lessons have been learned about avoiding splitting the vote in key parts of the country and aggressively isolating competing candidates (the Khupe factor was significant in some places). Remembering the late Morgan Tsvangirai, some of Eddie Cross’ reflections provide a helpful focus on the future, and the importance of consolidating gains, building to the next election.

Zimbabwe today is a deeply divided country. Between rural and urban, between the educated social media connected elites and the rest, between different groups within the security forces and the police and between different vying factions within all main parties. Mnangagwa has a big job on his hands to create unity.

Whether the indiscriminate killing of opposition supporters (and other passers-by) in Harare after the elections was ordered or was directed by an independent rogue group of securocrats is not known. Recent events suggest that the ongoing divisions within ZANU-PF and within the security forces (with the police often being side-lined in favour of a violent military support) are a real threat to economic and political stability that so many yearn.

These are themes that were raised around the (not) coup in November, and again have been put into sharp focus. In different ways, both Miles Tendi and Alex Magaisa pick up the dangerous role of the ‘shadow’ military state in their thoughtful articles, with a follow-up BSR today from Magaisa arguing that the brutal events of this past week have tarnished the reputation of Mnangagwa irretrievably, unless he can regain control.

What this reconfiguration of power means for the politics of land and agriculture is not yet clear. The political elites of both ZANU-PF and the MDC Alliance professed a commitment to modernising agriculture and increasing production, and much of this could be read as support for a new capitalist class of farmers, largely on the A2 farms. How the military elite, also invested in land including on the A2 farms, see the future is not articulated, but probably not very different.

Where this leaves the rural poor, the vast mass who continued to vote for ZANU-PF despite everything, is unclear. Who are their advocates? With a lack of coherence in rural policies (as seen in the manifestos) and relatively few of the high profile politicians of either main political formation really having a deep commitment to rural development (beyond the usual rhetoric), the voters will have to hold their MPs and the government more generally to account. Patterns of rural (and urban) differentiation result in different political alliances, and the tendency of political parties – and perhaps particularly the MDC as a movement with urban labour origins – to ignore rural issues is fatal. How class dynamics and rural politics will pan out in the future will surely be a focus for discussions on this blog into the future.

Earlier this year, I did a series of articles for The Conversation on what next for the post Mugabe era on land and agriculture, focusing on the issue of compensation for expropriated land, the need for an effective land administration system and ten priorities for agriculture. These issues all remain crucial, and we look forward to a new government with a wide range of talents, and perhaps including others from other parties, so that an inclusive, progressive commitment can be sustained. Certainly, Zimbabwe urgently needs a period of investment, peace and stability, but the big question remains, given the divisions, can Mnangagwa’s ZANU-PF deliver?

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

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Morgan Tsvangirai: a leader and a fighter

Morgan Tsvangirai has died. Zimbabwe has lost a great leader, a true fighter. As founder of the Movement for Democratic Change he was the first opposition leader in Zimbabwe to emerge from outside the ruling party. Starting out in the trade union movement, he knew how to mobilise. A great orator, and a man of the people he was widely popular, even amongst his foes. Today he is buried at his home village in Buhera next to his first wife at a state-supported funeral.

He might have become president had the violence of the 2008 elections not got out of hand. Instead he withdrew fearing worse, and later took on the poisoned chalice of the prime minister role in the Government of National Unity. And then in 2013 the MDC lost the election, as he later admitted, and began to fall apart, especially after he became ill with cancer, which finally killed him.

Like his great opponent Mugabe he failed to deal with the succession issue, and the current unseemly wrangling among the power-hungry MDC trio is witness to this failure in leadership at the end. Whatever political position you take, having a vibrant opposition is essential in any country. The MDC-T, as it became after the 2005 split, has been a vital part of political debate in Zimbabwe since 1999.

Where the MDC failed particularly was to generate an effective narrative that would appeal widely to people in the rural areas – of course the substantial majority of the electorate. ZANU-PF held sway, with its often simplistic populist, nationalist rhetoric, and with state resources for food aid and development projects could show its concern for rural issues.

Tsvangirai surrounded himself with top constitutional lawyers and white businessmen and farmers. All exceptionally smart, and deeply committed to change, but probably not the right people to lead new policy thinking on agrarian reform, nor develop strategies for rural mobilisation. Eddie Cross was for example the main spokesperson on agriculture and land, while the late Roy Bennett was also influential.

Tsvangirai, himself from a rural background in Masvingo province, deferred to these advisors. This was a mistake, and meant that, with equivocation around land reform and lack of vision around post-land reform rural development, the political terrain was left to ZANU-PF, who defended it vigorously, especially around elections.

As I have discussed on this blog before, the emerging class differentiation in rural areas was a potential open electoral opportunity for the MDC. Educated, aspirant, entrepreneurial, increasingly rich farmers, linked to urban areas, were an ideal constituency, but were ignored in favour of the urban masses, which of course was Tsvangirai’s territory from ZCTU days.

There were mistakes and misfortunes, intimidation and violence, as well as turns of events that meant that Tsvangirai’s ambitions were never realised. But over the last 20 years he has been central to political life in Zimbabwe, and made a massive contribution, as a strong, brave, courageous and principled politician. You can’t say that about many people.

***

Below are a number of links to obituaries and personal tributes, with much more detail on Tsvangirai’s life and important achievements. Twitter is of course full of many comments and tributes. On youtube, Oliver Mtukudzi has offered his own musical version.

  • Alex Magaisa offers a very personal and heartfelt BSR written hours after his death. He was a close adviser to the prime minister during the build-up to the fateful 2013 elections.
  • Stephen Chan provided the obituary for the Guardian newspaper. He again knew him well, and they wrote a book together. While recognising his great achievements, he makes some important comments about Tsvangirai’s failings and limitations.
  • Evan Mawarire, the #ThisFlag leader, highlights Tsvangirai’s courage in a piece in the Mail and Guardian, written just before he died.
  • David Moore offers a piece in The Conversation, reflecting on what might have been.

Other obituaries from some the major international newspapers tell a less interesting story – more the heroic narrative of peasant boy to union leader to valiant but brutalised opponent to the evil Mugabe (all true, but told without the nuance of those above). The NYT, Washington Post and The Telegraph offer some examples.

This post was written by Ian Scoones and first appeared on Zimbabweland. Photo from @263chat

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Land and agriculture in Zimbabwe following land reform

In May, I was invited to give a talk on Zimbabwe’s land reform and its aftermath by a great new student initiative at SOAS (School of African and Asia Studies) focused on agriculture and development in Africa. The event was hosted by the Royal African Society and SOAS. I was on a panel with Na Ncube who leads a great initiative in Matabeleland called the Global Native (see an earlier blog).

There is a recording of the event available here. Below I have elaborated my notes a bit, so they are more readable. They should vaguely tally with what I said. The discussion was great too, and worth a listen.

So here’s the talk….

A very brief history

Land and its relationship to agriculture has had a long and fraught history in Zimbabwe. As Robin Palmer said in his brilliant book, Land and Racial Domination in Rhodesia, back in 1977:

The most acute and difficult question confronting the first government of Zimbabwe will be that of land, bedeviled by its past use as a political and economic weapon by the whites and by consequent mythologies to which this has given rise. The problem will not be an easy one to resolve.

Indeed, this has come to pass. A difficult relationship between land, agriculture and livelihoods continues.

Before discussing some of our work on land and livelihoods since the land reform of 2000, I want to offer some brief historical context.

In the 1980s – resettlement was central to the post-Independence effort, and various models, based on a willing seller, willing buyer approach to transfers, were tried out. The so-called Model A schemes – a smallholder approach – was relatively successful as shown by the long-term by Bill Kinsey and others.

By the 1990, resettlement had slowed down, and by late 90s, some 72,000 households on 3.2m ha had been settled. This was way lower than the original targets. In this period there was an acceleration of acquisitions of farms by black elites, and commercial farms prospered in the liberalised economic environment.

But by 2000, 20 years after Independence, there had been no fundamental changes in the agrarian system. It was still based on a dualist arrangement – large-scale commercial farms contrasting with communal areas (and some resettlement schemes) – and was hiding many tensions and much political discontent.

From the early land invasions in late 1990s, accelerating in 2000 following the Constitutional referendum, there were major changes in land use across Zimbabwe, as people took the land. What later became the fast-track land reform programme (FTLRP), resulted in about 10 million hectares being transferred to about 220,000 households, within just a few years, involving both small-scale (A1) and medium scale (A2) farms.

This was a volatile period, sometimes violent, resulting a huge upheaval, and a loss of much of what was white owned large-scale agriculture. It is a highly varied story, and any simple narrative is simply not possible, as I’ve argued many times before.

Post-land reform livelihoods: three themes

Since 2000, we’ve been tracking what has happened – now in three sites in Masvingo, Mazowe and Matobo. Since the land reform, we have argued it is important to have some solid data on economic, social and political changes in the face of often highly ill-informed commentary and policy debate.

I want to highlight three key themes from our findings.

First, there is a new agrarian structure. As Sam Moyo and others have described, it’s now a trimodal system: small-scale (most), medium scale and large-scale and estates (importantly still present and often involving multinational agribusiness).

Second there has been varied performance in production, and so mixed success, across this trimodal system.

The small-scale A1 farms have done surprisingly well (this is consistent across our sites: production has grown; investment has expanded, involving what we refer to as accumulation from below; some economic growth potentials have been generated, especially linked to small towns; and new value chains and linkages have been created. To my mind, this is an important, unsung agricultural transformation, but with vanishingly little external support

By contrast, the A2 medium-scale farms have done less well. Capital constraints, lack of investment, limited finance/credit have hampered production, but some new joint ventures and contracting arrangements have helped. Unlike the European commercial farms established in colonial era in these same areas, there has been virtually no finance and state support.

In the large-scale and estate sector, the story has been varied. But the sugar estates are continuing, and are increasingly reliant on new outgrower arrangements to assure profits.

Third, there have been shifts in politics, as a result of this reconfiguration of land and its uses. Again, this is reflected in different ways across the trimodal system.

Most of the new A1 farmers were from other rural areas, mostly communal areas, and the urban unemployed. Not all are doing well by any means, but many are – and all aspire to accumulate, as many are managing to do. They have varied links with ruling party (and not all are supporters by any means). They are now demanding services and support from the state/party, which has so far been strikingly absent. As a more educated/younger/connected demographic than their immediate communal area counterparts, they are now demanding more, with increasingly louder voices.

The A2 farmers represent a very different class composition. A professional middle class dominates, with many civil servants gaining land, part of the state’s deal with such class interests. In some sites more than others, there are also members of the security services and others with strong political-business-military connections. Many A2 farmers are now seeking alliances with other investors, including former white farmers, Chinese and others, in order to boost production and offset debt.

Finally, the large-scale farms and estates, often with direct links to international agribusiness have negotiated the political uncertainties with brokered deals with the party-state, providing them some cover for their interests (see our work on the sugar estates, for example).

Thus the new trimodal agrarian system has generated new forms of production and economic relations and with this a new political dynamic. These are different across A1, A2 and large-scale/estate sectors, and represent an important new class dynamic in the countryside, with major implications for the future.

A constrained agrarian setting

Overall, though, the potentials of the new agrarian structure is highly constrained: by failures in the wider economy, lack of rural credit and finance, insecure tenure arrangements, poor land administration, patronage and corruption (as I have discussed many times on this blog – for example, a few weeks back). The failure to pay compensation to former white farmers, in line with the Constitution, has hampered political progress too, as various international ‘restrictive measures’ (aka sanctions) persist.

Within these broad categories in the trimodal system, we must also look at other actors – some of whom lost out significantly from the land reform. These include former farm workers, now becoming incorporated into new farm structure, but on poor terms; women who gained early, but are losing out due to reassertion of patriarchal structures; and youth, who nearly a generation on don’t have a chance of getting like their parents did in 2000, with small subdivisions being offered and resentment building.

Over 17 years, there have been winners and losers from the land reform, and the net result of the wider political-economic impasse in Zimbabwe has been stagnation in the key economic sector of agriculture (although with a much vaunted bumper harvest this year of course). Generally, there’s a deep lack of policy vision of what to do about rural development and agriculture in the post-land reform setting.

Unfortunately, the current debate about land and agriculture in Zimbabwe is hopelessly limited. All political parties repeat same tired old rhetoric – whether ZANU-PF’s nationalistic stance or the opposition’s version of neoliberal policy prescriptions – while donors or others seem to have an extraordinarily limited grasp of the realities on the ground. None have got to grips with the big implications – technical, economic and above all political – of the new agrarian structure.

What next? Three scenarios

So what next? Whatever the outcome of next year’s election, and whatever happens in the on-going soap opera of succession struggles and opposition coalitions formation, there are some big questions that are raised.

I want to outline three possible scenarios for the future (see also Toendepi Shonhe’s very thoughtful scenario discussion in Gravitas recently, which has some echoes):

Scenario 1: Status quo, impasse and conflict. Under this scenario, a political stalemate emerges post 2018, and with this a failure to address outstanding compensation issues, address security of tenure challenges, and the refinancing of agriculture doesn’t happen. Under this scenario, A1 smallholders continue as now – they will be doing OK, but not reaching their potential. And discontent with lack of state support will build. Among the A2 farms, a few elite enterprises with external finance will prosper, but little else and the pattern of underutilisation will continue. A long-term demand for land continues from youth, former farm workers and others, in the absence of the growth of the wider economy. But without economic dynamism more broadly, linking the agricultural sector with the wider economy, there will be few prospects for most. This is I am afraid is the default scenario, and currently, sadly the most likely.

Scenario 2. Elite capture. A political change (of some sort – in whatever permutation) results in a flood of capital from outside the country for investment in commercial farming. New joint ventures are established particularly in medium-scale A2 farms and estates (including on parastatal land), adding to a trend that has already begun. Pushed by international finance institutions, donors and global capital, this will lead to a process of consolidation, squeezing out small-scale production. Elite pacts will be struck between the state, connected land reform beneficiaries and external capital (including donors), around a narrative of economic growth and modernisation. Selective accumulation will occur among those with A2 farms, and the result will be a reversion to a large-scale commercial farming trajectory, benefiting a few, but excluding many.

Scenario 3. Smallholder led transformation. This is my favoured, ideal scenario (as you may well guess). In this scenario, A1 accumulators in particular – existing now in large numbers and electorally significant, in alliance with other rural producers – will demand support from the state (under whatever regime), gaining greater political voice. They will push for example for transfers of land from underutilised A2 areas to extend A1 resettlements, accommodating youth and others. They will demand more effective and appropriate rural finance arrangements, and service support, including infrastructural investment (as European farmers did so effectively during the colonial period). Building on an existing dynamic of accumulation from below, a smallholder led agricultural and economic transformation extends, with ripple effects on employment and local economic development. This is made possible by support from new political configurations, but these would require policy vision and commitment, seemingly currently unlikely until a new political settlement is reached, and all parties realise how important rural questions are.

Final thoughts

While land reform happened in a way that was far from ideal, it was certainly necessary. The question is what happens now, rather than harking back to past mistakes and misdeeds. And thinking this through needs evidence-informed policy planning that in my view envisages an agriculture that is productive but also equitable, with the real potentials of land reform – centred on a transformatory smallholder vision – at the core, and rejects both the depressing scenario of the status quo or the scenario of elite capture. Time, as they say, will tell.

This post was written by Ian Scoones and appeared on Zimbabweland

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#Hashtag activism: will it make a difference in Zimbabwe?

zimbabwe-protests

Over the last few months a new type of politics has been brewing in Zimbabwe. Fed up with the mainstream parties, people have been taking to social media to express their demands. The most prominent has been the #ThisFlag movement, adopting the national flag as the symbol to rally around.

Led by a pastor – Evan Mawarire – it has generated massive interest, both in Zimbabwe and in the diaspora, and resulted in a successful stay-away in early July. Other movements, linked by social media, include: Occupy Africa Unity Square and Tajamuka/Sesjikile, as well as numerous bloggers, Twitter commentators, Youtube channels and Facebook accounts. Will this make a difference?

Some say this is the start of a ‘Zimbabwean spring’, echoing the movements that toppled governments in the Arab world a few years ago. But we need to be cautious about such parallels. There have been some excellent, reflective commentaries on this emerging phenomenon from Alex Magaisa, Miles Tendi and Brian Raftopolous in recent weeks. Let me highlight some key points made.

Genuine grievances are being expressed as the economy nosedives

Corruption, repression and lack of economic opportunity certainly are real concerns in Zimbabwe today, particularly among youth and urbanites. The riots discussed last week were an expression of this among vendors, taxi operators and others working hard to make a living in the ‘informal economy’

On Twitter, the core demands are stated, thus: “#ThisFlag will continue to be a civil rights movement driven by its citizens against: Poverty, Injustice, Corruption”. Most would sign up to this. But how does it translate into a political project, beyond the demands? This requires reaching out to wider constituencies.

This is an urban phenomenon, but Zimbabwe is largely rural

Only 34 percent of Zimbabwe’s population is classified as urban by the World Bank. This is far less than say Tunisia where the Arab spring started, where 68 percent is urban. This makes a big difference, as Twitter, Facebook and other social media are not active in many rural areas. People are of course engaging through multiple routes, and Whatsapp connections reach further. But most activists live in the major towns and are young, and hashtag activism doesn’t reach older generations, or people in rural areas where the majority live.

Rural people certainly have grievances against the government, but they are different. Many got land during the land reform, but they want state support to help make their farms productive and their rural economies grow. These are different demands, and different people; coalitions across the whole electorate will be vital in any future election. ZANU-PF, by both fair and foul means, have been past masters at assuring a vote.

The commentaries make this point, but only in passing. Miles Tendi asks: “where are the voices of Zimbabwe’s rural youth, who despite their numerical majority, have played a marginal role in online activism? Alex Magaisa comments: “The new citizens’ movement which has made waves in recent weeks has been concentrated in the urban areas. In this regard therefore, it is not very different from the traditional political opposition and organised civil society.”

To my mind this is the crucial issue, meaning this will remain a protest movement, but not one that brings change, unless wider alliances are built and a rural agenda is forged – something that opposition groupings coming from trade union backgrounds have singularly failed to do in the past. A failure to engage with rural politics by the urban and diaspora commentariat along with activist organisers is a big mistake.

If hashtag activism is not linked to civic movements and structures on the ground it will not result in change

Raftopolous comments on the new type of politics: “This movement is different to earlier forms of civic activism in a number of ways. First, it does not appear to be driven by any particular political party. Second, since the demise of the structures of the labour movement in the first decade of the 2000s, the forms of organisation in the informal sector have become much more fluid. The result is that this form of activism is more difficult for the state to track, but it also makes such interventions more fragile and more difficult to sustain. Third, the modality of protest appears to have drawn from forms used in South African protest movements. These include the burning of buildings, such as the torching of the Zimbabwe Revenue Service building at the Beitbridge border between South Africa and Zimbabwe, and the burning of tyres in the streets”.

Raftopolous argues that we may be witnessing “a change in the idea of citizenship” in Zimbabwe, as new people engage in politics. But Tendi argues, “These predictions of Mugabe’s imminent downfall are wrong….. social media activism can never substitute for organized political activity on the ground”. He continues: “it is not enough for Zimbabwe’s urban youth to simply oppose the status quo through social media. Let’s say that a successful youth uprising were to remove Mugabe from power tomorrow: Who would take over in his wake? What sort of political and economic agenda would this new leader have? Most of Zimbabwe’s social media activists have yet to give lucid answers to these important questions, while the few who do are plagued by a lack of consensus about who would lead a post-Mugabe Zimbabwe and what that leadership’s agenda should be….If social media activists want to make a successful contribution to political change in Zimbabwe, they need to work in sync with traditional civil society groups and, crucially, effective opposition political parties”.

The problem, as Alex Magaisa, comments is that opposition parties are not effective, and civic movements are poorly funded and have over the years fallen into “the rigid confines of donor-demarcated programmes”.

The opposition parties are in turmoil

Alex Magaisa’s always-informative Big Saturday Read this week has dissected the recent announcements of the MDC-T president, Morgan Tsvangarai, with two additional vice-presidents appointed in the party. This was spun as preparing for the next election, but does it represent an attempt to control an unseemly succession struggle, or a clever route to cooption of different factions? Tsvangirai has revealed that he has colon cancer, so the party requires a new strategy. A recent statement tried to link itself to the #ThisFlag movement, but the connections through to local party structures are not clear. The wider movement has a broad political base, rooted in disaffection with the status quo, rather than any particular party loyalty, so it may be difficult to connect new citizen activism to opposition politics and votes.

Repression and control of social media and protest is likely

ZANU-PF has always been effective at suppressing dissent, both within the party and within the country. It has used violent means in the past, and will do so again. And of course there’s tweeter-in-chief, Prof. Jonathan Moyo MP, Minister of Higher and Tertiary Education, Science and Technology Development, with an impressive 78k followers. Cyber security has risen up the agenda, and there will be attempts to monitor and restrict social media for sure. The Central Intelligence Organisation has had much advice from Israel and others, and blocking online activism is certainly possible.

As Magaisa argues: “We are likely to see more arrests of activists in the citizens’ movement. Ordinary members of the public will also be arrested and prosecuted as examples to others. There will also be new laws to criminalise conduct on social media and other similar spaces. There will be further statements and warnings from the coercive elements of the state, all designed to deter and scare people from using social media to challenge government. In this regard, the citizens’ movement will find that its struggle is really not very different from the struggle which the traditional opposition parties and organized civil society have faced in the past. The question is whether this new citizens’ movement has devised new tools to overcome or get around these impediments”.

Key to the unfolding story, as Tendi explains, will be the role of the military. Also divided but held in check by webs of patronage and control, if any group breaks loose, then the dynamic changes immediately. Not paying the army on time is clearly unwise. But as Tendi says the hashtag activists have no route into these military-security networks, and have paid such issues little thought, a “fateful omission”, he argues. He explains, “Mugabe maintains his hold on power largely because of the army’s internal divisions, particularly among the senior officers….. He has also used the intelligence services to sow divisions and maintain surveillance among the generals. Unless Mugabe’s opponents can develop a strategy to bring a decisive majority of senior military officers over to their side, even the most effective social media campaign will be for naught”.

Looking forward

Tendi concludes his Foreign Affairs piece, looking forward: “Young people, urban and rural, do not seem to be discussing among themselves whom they should support in the 2018 election, or what sort of political and economic agenda they want to see for their country. What Zimbabwe needs now, most of all, is a well-thought-out and pragmatic approach to the 2018 election — one that will unite civil society, the opposition parties, online activists, and urban and rural youth. That is the key to finding a new path ahead”.

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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