The Post MUGABE ERA –FUNDAMENTALS FOR NATIONAL DEVELOPMENT AND ECONOMIC GROWTH
By Dumisani O. Nkomo
We as Zimbabweans need to get past our fixation with Robert Mugabe and ZANU P.F and begin to forge a very clear path to the future characterized by economic growth ,improvement in service delivery, access to basic services such as health ,education ,water ,energy and yes critically availability of jobs ,steady incomes and housing .We should not allow hatred for individuals and personalities to cloud a shared national vision and defined strategies of how Zimbabwe can emerge from economic stagnation and place herself on the solid path of socio economic growth .
I would like to suggest that in order for the nation to move forward besides addressing the usual governance challenges we need to start reflecting on at least five critical areas or sectors which the government and the nation should focus on in order to catalyze economic growth and development. I would also like to argue that it may not be possible to revive many of Zimbabwe’s ailing industries and instead more effort should be made in facilitating the development of new ,viable and competitive sectors .
In building Zimbabwe’s competitive strengths and advantages it would be essential to focus on building five primary pillars of growth namely rehabilitation of the transport sector ,development of the energy sector ,the extractive sector ,water development and the enhancement of the country’s fiber optic network .
De Industrialization Is A Global Phenomenon
It will be crucial to ask ourselves whether our industries our competitive enough for the global market and to make tough decisions about which sectors we should focus on .Rapid global advancements in technology ,policy inconsistency ,lack of capital ,high operating costs which make the costs of production high are making it increasingly difficult for industry in Zimbabwe. This is accentuated by stiff competition from emerging economies such as China ,Brazil and India which has affected industries even in countries such as the United States of America and Great Britain .In the USA computer giants Dell had to close one of their plants and relocate it to China due to cheaper production costs in that country .Similarly whilst Britain’s POST SECOND WORLD WAR 2 ECONOMY was heavily dependent on manufacturing with manufacturing accounting for over 40 % of the G.D.P the current British economy is heavily dependent on the so called service industry and not actual production .The competition from China and other emerging economies has taken toll on many economies resulting in these countries having to re adjust their competitive advantages to concentrate on their strengths instead of their weaknesses .The big question which i have no answer for is ?can Zimbabwe reverse the tide of industrialization ?Can de industrialization which actually began in the pre Economic Structural Adjustment era be reversed or stopped or should the country focus on industries and sectors that are viable and competitive in the global arena .De industrialization whilst being a global phenomenon has been accentuated in areas such as Bulawayo which have borne the brunt of marginalization in infrastructural development which is essential in attracting investor confidence .
Tough Questions On De Industrialization
The obsession to revive Bulawayo’s industries to what they were thirty years ago is actually misplaced because some of those industries cannot survive in the new global environment .We need to be thinking of what Bulawayo and indeed Zimbabwe will be like in fifty years and which sectors of the economy will enable us to take our place in the sun We should not be merely crying about restoration of old industries but agitating and organizing for new frontiers .The same goes for Harare , Mutare , Gweru ,Masvingo ,Kwekwe ,Chegutu and Kadoma as these places cannot base their future growth on past successes .Critical questions need to be asked about the competitiveness of industries upon which these cities and towns were founded upon Failure to appreciate this could be a case of investing in our weaknesses and not on new opportunities and competitive advantages .
I believe we need to ask ourselves these questions because if we fail to do so we may try and inject a lot of resources into industries that may only be able to survive to subsistence levels .At the same time revival of some of these industries may contribute immensely to the G.D.P and result in phenomenal socio economic transformation .We need as new audacity as a nation that will make us question current economic transformation models and paradigms .This sober introspection will enable us to focus on our strengths and not our weaknesses .Truly speaking some of the industries that closed down may never be able to survive in this harsh global environment epitomized by phenomenal growth in technology and automation .
Nationally whilst the operating environment may be extremely harsh ,the situation may even be more challenging globally .The introduction of tariffs to protect local industry whilst being a very noble initiative may as Professor Tony Hawkins intimated fall short because of other trade agreements at regional and international level which gravitate towards free trading zones and areas .It is for this reason that i would like to suggest that we should then expend our energies on what can give us the most mileage ,benefit and advantage .
I would like to suggest that on abroad level Zimbabwe need to invest in infrastructure and frameworks that provide a sound foundation for the development of the economy .Investing in five key strategic engines of economic growth and these five primary pillars would then build a solid base for the growth of related and inter dependent industries and sectors .
Some of the critical areas are overhaul of the transport sector ,exploring the potential of sustainable alternative energy sources ,development of a sound fiber optic network to boost the country’s I.C.T competence .Critically an enabling environment with incentives for value addition and beneficiation for the extractive sector could unlock mining as the bedrock of the country’s economic growth .Development of water sources for industrial ,commercial and agricultural use will be key .Priority should also be placed on the development of tourism which has a knock on impact for downstream businesses .
Yes we can make it ,lets start thinking differently
Dumisani O .Nkomo is the chief executive officer of Habakkuk Trust and a political analyst
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