Maravi

Biti warns of unrest in Zimbabwe if no aid comes

Biti warns of unrest in Zimbabwe if no aid comes
Written by Kingsley Kaswende in Harare
Saturday, March 28, 2009 5:48:59 AM

Finance minister Tendai Biti has warned of possible unrest in Zimbabwe if the international community does not come to the aid of the country.

Biti has previously said foreign investment would be crucial to rebuilding the country's economy but he has now warned of possible violent civil unrest if the donor community does not come to Zimbabwe's aid.

He said the inclusive government needed international financial backup to work successfully.

"The consequences of it (unity government) not working are drastic, it will lead to a failure of the state, a collapse of the state and all the civil unrest that follows the failure of a state," Biti said at a joint press conference in with the visiting Norwegian International Development Minister, Erik Solheim.

Most donor countries have mounted a "wait-and-see" approach on the inclusive government before they can commit their funds. Most of them have said they will maintain humanitarian aid, with minimal pledges for non-humanitarian aid.

Western countries feel Zimbabwe first has to implement genuine and comprehensive political and economic reforms, before they can lift sanctions or provide direct financial support to the government..

The United States has gone even further by demanding a new and democratic constitution in Zimbabwe within the next 18 months, followed by fresh elections, before it lifts sanctions or provides significant financial support.

The International Monetary Fund (IMF) has made it clear, in a statement released on Wednesday that it was cautiously holding back on investment in Zimbabwe until such a time that the government can produce "a track record of sound policy implementation, donor support and a resolution of overdue financial obligations to official creditors.."

Most countries that have pledged money to Zimbabwe in recent weeks have only done so by channelling money into humanitarian agencies working on the ground rather than for balance of payment support.

Labels: DONORS, TENDAI BITI, ZIMBABWE

posted by MrK @ 5:49 AM