MDC AND IT'S POLICIES (MrK)
MDC ECONOMIC POLICIES & LAND REFORM" Economics and Finance
Once the political framework for progress has been put in place, the MDC has a dynamic and progressive programme of economic reforms that it intends to implement in a coordinated and controlled manner. To achieve its socio/economic goals, as more fully described in the “Restart” programme, the MDC will require substantial and ongoing international assistance. For the purpose of this policy review it is accepted that this will in fact be the case should a MDC government be elected following the adoption and implementation of a new constitution. "
Let's stop that nonsense right here. You cannot build a manufacturing industry on top of an agricultural system and mining system that is foreign owned. It is like building a house on quicksand.
" Macro Economic Policies.The basic policies for sound management of a developing economy such as that found in Zimbabwe are well known and developed. Such a policy framework is applied in all progressive and developing economies including many of Zimbabwe’s neighbors. "
Ok, so they are going to emulate Zambia. They are going to cut back government expenditures on social affairs, and have low inflation. Meaning, they are going to suffocate the economy of the country by going for low inflation because DOGMA says that low inflation is good for business.
If they are going to imitate the MMD, that also means they are going to leave the economy to foreigners (like their land ownership), and start becoming enthralled to Australian/Canadian/South African mining interests, while letting the shops be run by the Indians and the Chinese.
" The MDC remains committed to adopting and implementing such policies when it takes power in Zimbabwe. This would include market based managed exchange rate, lifting exchange control as soon as markets stabilized, interest rates that protected and encouraged savings and stringent controls on the fiscal regime. Price controls would never be used by an MDC government to try to reduce inflation as this treats the symptoms rather than the cause. "
In other words, foreign competition for Zimbabwe's business owners, marketeers and subsistence farmers.
Now I have to say that there is a great and superior alternative to price controls. It is called PRODUCTION. Production does several great things at once - it lowers the price of goods, it increases economic activity and it increases wealth held by ordinary people in society. However, the MDC does not say a single word about stimulating and protecting Zimbabwe's own. However, they want to bring down controls and threaten their own economy.
" Instead, an MDC government would foster open competition between firms and ensure that all basic necessities were maintained in free supply. Local monopolies would be required to face import competition if they are unwilling to allow greater competition in local markets. "
Again, I am against monopolies, but their prescription of international competition, instead of stimulating local production is just the same old neoliberal dogma. This is not free competition, it is a recipy for the destruction of Zimbabwe's present and future producing capacity.
" Fiscal Policies.The government would seek to raise tax revenues from the economy and general populace, targeting a collection rate equal to 30 per cent of GDP. "
BOOM!!!!
That's the sound of the explosion of any future businesses operating legitimately in Zimbabwe's economy. Even the MMD only collects around 10% of GDP ($1.1 billion in revenues, from an economy of $10 billion, in 2004.). This 30% of GDP is a real bombshell, and I am surprised no one has mentioned it.
" In the social sector (Education and Health), it would be expected that the targeted levels of service required to meet basic social needs would have to be co-financed with the international community. "
And need we forget, fees would have to be paid for education, healthcare and other services. Has this been a recipe for economic prosperity in Zambia? NO WAY! It has been a recipe for preventable death and suffering.
" The budget deficit, which has been the major source of monetary instability and the massive growth in public debt (now 1000 times the level that existed in 1980), will be held to the generally accepted limit of 3 per cent of GDP or less. "
Generally accepted by whom? All these people want to do, is conform to neoliberal standards. Where is their own intelligence? Where is their looking at Zimbabwe and interpreting the country's own needs on an issue by issue basis. Where is their real intellectual independence?
But, they will not I presume get rid of many of Zimbabwe's 30 some ministries.
How about decentralization?
" Taxation.Under Zanu PF, the taxation system has become increasingly regressive and oppressive. "
But wait a minute, didn't they just suggest taking 30% of GDP out of the economy in taxation?
" An MDC government would simplify the tax system – eliminate all levies and incorporate these into a single tax code that is easier to administer and control. "
But still take 30% out of GDP.
If simplifying taxes to eliminate levies would lead to greater service delivery, then that would be one thing. However, I don't see anything here about government reform, or replacing the monies from these levies by setting aside a substantial piece of national revenues (1/3 to half) for the local government that collects these levies in the first place. In other words, local government would have even less money to spend. That means less education, less healthcare, less road repair, etc. More death, more illiteracy, more road accidents. But, the corporations are free to exploit Zimbabwe's resources.
" The applied rate of the VAT tax will be reduced and the tax base broadened to ensure that all that live and work in Zimbabwe make some sort of contribution to the fiscus. Capital gains tax will be reviewed by a panel of experts and adjusted to make it easier to administer, ensure it does not interfere with the operation of capital markets and is simple to calculate and collect. "
But doesn't the existence of VAT already ensure that everybody who lives in the country is already contributing to taxes?
" The administration of all border posts will be streamlined, border duties reduced wherever possible and the code system simplified. All duties on commercial imports will be assessed at inland ports set up in each town and city to facilitate expedited entry to the country and to reduce standing time at border posts to the minimum. It is expected that this will also help curb corruption at border posts – thought to be endemic at present. "
Which is great for businesses and consumer goods, not for local production. We have all seen the effect of job and income losses because of this particular version of trade liberalisation.
Just in conclusion, I wonder if Zimbabwe is being painted as an economic 'basket case' with '1700% inflation', in order to make the bitter pill of MDC liberalism seem more palatable.
LAND REFORM
Land Reform Agriculture
" A decade ago, agriculture contributed nearly a quarter of all economic output, half of all foreign exchange earnings and a third of all employment. Since then under the so-called “Land Reform Exercise”, the industry has collapsed and output has declined by nearly 80 per cent. For five years now, the country has been unable to feed itself and this situation will not change in 2006. "
Nor will it change under the MMD. Hundreds of thousands of people will be thrown off their land, in an effort to 'restore' ownership to whites.
" An MDC government will have to deal with the emotive issue of land "
For 'emotive', read 'popular'...
" and there is simply no easy way to deal with this if we are to see any sort of recovery in this key sector of the economy. While the MDC has some sympathy with the need for reform in the commercial farm sector "
In other words, they will not represent their own people...
it rejects completely, the illegal and destructive manner in which this reform exercise has been carried out by the regime. "
In other words, these dirtbags are going to turn back land reform. In the servile mind of the MDC, whitey knows best.
" To redress the injustice done to existing land owners "
But not to redress the issue of the injustice done to the African population, who have been starving on bad quality land since it was stolen from them by far more force that mr. Mugabe ever brought to bare... But hey, who would take into account the suffering of African people in Zimbabwe? Not the MDC.
" under the reform process and to start the recovery process in the agricultural industry, the MDC will immediately appoint an independent Land Commission with a 5 year mandate to investigate the situation in respect to farm land, establish ownership and initiate a properly planned and managed reform process in all areas of the country. The mandate of the Commission will include the communal areas, forestry reserves and all commercial land holdings. "
" The MDC will respect all legal land title deeds "
The MDC will ignore all claims of natural justice, which would return at least unused land to the people of Zimbabwe.
" and ensure that the financial and legal rights of such landowners are fully respected and enforced. Existing landowners will be encouraged to resume farming as soon as possible and will be given every assistance to do so. "
So again white farmers will receive state support, but African farmers will not. How is this different from British colonialism again?
" Special Courts will be set up in all major centers to assess compensation claims for losses incurred during the “fast track” land reform operation and the State will be responsible for such claims. These Courts will also deal with disputes over land rights. "
Wow. So that will take another couple of decades to sort out.
" In Communal Areas, every assistance will be provided and a legal basis created to give farmers in these areas greater security over their assets. The exact basis of how this complex and difficult issue is dealt with will be left to the Land Commission and interested parties including the traditional leaders and the farmers themselves. "
What they need is not simply a legal basis for their poverty, but actual assistance in the ordinary process of agricultural production. Mechanization, inputs, marketing, sales, credit, etc.
" In all other respects, agricultural policy will be market driven and based and will focus on enabling farmers to produce products at the lowest cost possible on a sustainable and profitable basis. Special efforts will be made to restore our capacity to feed ourselves and to this end, the negative effects of food aid in all its different forms will be subjected to close scrutiny and review. "
Market driven, meaning they are on their own and their poverty will not be addressed by this 'do nothing' government of neoliberals. And what are the negative effects of food aid, in the absence of stimulating production? Production meaning REAL production, by indigenous farmers?
" Our production for export will also receive attention and here an MDC government would work closely with the private sector to identify and eliminate constraints. "
In the absence of land reform (or it's reversal), this means that white farmers are going to be helped exporting tobacco, coffee, tea and other cash crops for western markets.
" The control, management and operations of all remaining parastatals will be subjected to detailed study and review. The Cold Storage Company taken over by the meat industry ad beef producers and the Grain Marketing Board placed under industry driven control and management. The government will however retain the GMB as an instrument of the State to ensure the smooth and continuous supply of basic foods to the market via the private sector. "
Meaning, they are going to sell off and sell out the parastatals.
" The manufacturing and processing activities of the GMB will be closed down and sold off. "
In other words, no controls, but no alternatives either. This is while in Zambia, Guy Scott is talking about bringing back the Marketing Board.
CONCLUSION
The reason the MMD are so coy about reversing land reform, is that THEY KNOW IT IS EXTREMELEY POPULAR.
The MDC will:
1) Turn back land reform
2) Dismantle parastatal companies
3) Reduce services
4) Increase taxation massively
All in the interest of existing corporations and large land owners.
Stooges, nothing more.
Sources:
MDC Economic Policies
http://www.mdczw.org/index.php?option=com_content&task=view&id=34&Itemid=32
MDC Land Reform Policy
http://www.mdczw.org/index.php?option=com_content&task=view&id=48&Itemid=32
posted by MrK @ 11:37 PM
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