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(TALKZIMBABWE) UK and MDC worst kept secret: not so ’smart’ sanctions

UK and MDC worst kept secret: not so ’smart’ sanctions
Dr Martyn Tiemba – Opinion
Thu, 06 Nov 2008 02:53:00 +0000

THE impending formation of government will soon have politicians, pundits and propagandists from both sides of the political divide zeroing in on one key issue, that of sanctions.

If Zanu PF is to be believed then the illegal sanctions are the principle cause of the nation’s economic hardship, making the Movement for Democratic Change’s cheerleading for them particularly deplorable.

However, if the MDC is correct then blaming sanctions is merely a convenient excuse for the regime’s misrule and besides, the sanctions are too ‘smart’ to hurt the average Zimbabwean.

The reality lies somewhere in-between and sanctions are a major, even if not principal cause of the economic crisis and unfortunately are not ’smart’ enough to avoid severely impacting on the average Zimbabwean.

However, fortunately for the MDC sanctions are smart enough to conform to the notion that propaganda is most effective when it reinforces already held ideas and beliefs. People already hold ideas and beliefs about the supposedly inconsequential nature of sanctions because of distortion within media coverage.

Despite such media reports to the contrary the sanctions that the MDC have virtually helped draft, are still pushing for, refuse to denounce and yet bizarrely, don’t recognise the existence of are as follows.

Financial and Trade Sanctions

The most significant and damaging sanctions are financial sanctions which impede financial flows such as aid and short and long term loans which reduce foreign exchange flows into Zimbabwe.

Financial sanctions also interrupt commercial and trade finance, through reduction of both Government and private sector access to foreign loans.

This in turn leads the Government and private sector to seek credit internally which exacerbates inflationary pressures.

A subset of this form of sanctions includes the far less significant, infamous so called ‘smart sanctions’ which refine the effectiveness of other sanctions through disguised means and impose travel bans and freeze the foreign assets of certain individuals.

Trade barriers such as embargoes and quantitative restrictions are also imposed on Zimbabwe in order to limit the country’s exports and restrict its imports.

European Union Sanctions

On February 18, 2002, the European Union formally imposed sanctions against Zimbabwe. The specific terms of sanctions made it such that all financial and technical assistance would be "reoriented in support of the population, in particular in the social sectors, democratization, respect for human rights and the rule of law."

The EU then suspended the budgetary support it previously provided and terminated "financial support for all projects" apart from "those in direct support of the population."

It is somewhat paradoxical that the EU has "reoriented" its support to the "population" which will inevitably be hurt by its "suspension of budgetary support and termination of financial support for all projects".

The Delegation of the European Union to Zimbabwe flatly denies that it is ‘imposing economic or trade sanctions against Zimbabwe,’

Zimbabwe Democracy and Economic Recovery Act 2001

On December 21, 2001, US President George W. Bush signed into law the Zimbabwe Democracy and Economic Recovery Act 2001. The main thrust of the act ‘directs U.S. executive directors of multilateral development banks and international financial institutions to propose review of, the cancellation or reduction of indebtedness owed by, or the extension of loans, credit, or guarantees to, the Government of Zimbabwe.’

President George W. Bush mentioned that he hoped that ‘’the provisions of this important legislation will support the people of Zimbabwe in their struggle to effect peaceful democratic change and achieve economic growth.’’

Given this aspect of the legislation one could be understood for believing that only the former of the President’s two aforementioned objectives was truly intended, in so far as the legislation is having a direct negative impact on the latter.

Arrears triggered Sanctions and withdrawal of Balance of Payments

Since 1999, the Bretton Woods Institutions, including the IMF and World Bank have suspended balance of payment support and technical assistance as a result of Zimbabwe’s inability to honour its financial obligations to these institutions.

The Land Reform Programme in 2000 brought about the following sanctions by Multilateral Financial Institutions:

Suspension of Balance of Payments Support;
Suspension of technical assistance;
Suspension of voting and related rights by IMF; and
Declaration of ineligibility to access Fund resources.

Undeclared Sanctions

Undeclared sanctions are sanctions which are not explicitly announced but are implied from the actions of the nations imposing sanctions.

For example, certain Non - Governmental Organizations have moved their operations out of the country, since the enactment of the Zimbabwe Democracy and Economic Recovery Act of 2001.

Similarly there have been reports from naval officials in Mozambique of instances whereby shipments of fuel and other imports destined for Zimbabwe have been payed-off at a premium and told to return from whence they came.

Number 10’s Dilemma

There will interestingly come a time when Mr. Tsvangirai’s chickens will come home to roost and both he and his handlers will be faced with a purely self induced dilemma. This dilemma can best be expressed by envisaging a time in the not too distant future when the Zimbabwean Prime Minister flies to the UK to meet his counterpart in order to plead for the lifting of the very sanctions he publicly called for.

His counterpart knowing full well that if such a request is granted the Zimbabwean Prime Minister will have to report the good news back to the Zimbabwean Head of State and Head of Government whose hand he will have just strengthened immeasurably.

His counterpart will also know full well that should he not grant such a request the Zimbabwean Prime Minister will face insurmountable pressure from MDC and Zanu PF members and supporters alike, thus strengthening the President’s hand immeasurably.

Labels: SANCTIONS, ZIMBABWE

posted by MrK @ 5:42 PM