Maravi

(HERALD) Investment, indigenisation two sides of the same coin

Investment, indigenisation two sides of the same coin
By Golden Guvamatanga

ZIMBABWE’S strategic position as one of the economic powerhouses of the region has long been recognised, but with little attention paid to locals who have watered this potential with their sweat, blood and vision.

The talk of indigenisation is swiftly rubbished. In many instances, we have had responses via international media from these people who claim to hold the keys to the economic development of, not only this nation, but of the world at large.

These people use organisations such as the World Bank and International Monetary Fund to dictate the pace of development in such countries as Zimbabwe through economic bullying, manipulation and domination, such as the sanctions imposed on Zimbabwe for capacitating its people through the Land Reform Programme and the black empowerment.

They have mostly grossly misrepresented Zimbabwe’s case as that of cheap politicking, poor governance and poor economic policies by President Mugabe and Zanu-PF.

But going further with the debate, and in light of the current global economic trends in which the economic crunch has hit mostly the masters of the manipulation, one certainly sides with President Mugabe when he tries to enlighten the world about the great need to capacitate locals through setting up platforms for equal participation in politics economics.

The Americans have responded to the financial crisis by bailing out such giants as the American International Group (AIG).

Such questions would be asked: if AIG was foreign- -owned would the American government bail them out?

The answer would be obvious. This again is in light of the just--ended Zimbabwe International Investment Conference designed to showcase Zimbabwe’s potential as a tourist and business investment destination of choice.

The conference, which was attended by more than 400 delegates drawn from across the globe, presented potential investors with the opportunity to assess areas of possible investment through interacting with Zimbabweans themselves.

President Mugabe made important remarks on both the conference and indigenisation when he said the Zimbabwe International Investment Conference was one of Government’s strategies to attract potential investors "with a view to stimulating investment into the country".

This is in line with the Government’s Short-Term Emergency Recovery Programme, which is aimed at stabilising the economy.

"Such investment is welcome, especially when it is tailor-made to work in co-operation with indigenous entrepreneurs. All this is possible under our investment law."

This is the thrust that the President has always alluded to as key to, not only Zimbabwe’s, but Africa’s economic independence and development.

Zimbabweans and indeed the country can only develop if there is greater and equal participation in the political economics of this country by the locals for social and economic development.

We welcome with open arms investment that not only have locals as partners but one that benefits them so that the unprecedented levels of poverty caused by the Western-imposed economic sanctions can be reduced.

This means the upliftment and upholding of such noble policies as the much-criticised Indigenisation and Economic Empowerment Act, which is aimed at economically benefiting locals by capacitating them so that development can be achieved even at the grassroots level.

Sadly, the media campaign has sought to dismiss the importance of this move by portraying it as a hindrance to investment to Zimbabwe and as one of President Mugabe’s poor economic policies.

But the real truth is that the enactment of such a policy is a slap in the face of the Western powers. It defeats their sole goal of grabbing all the country’s resources, and feed them into their own already well-established economies.

At the same time, the process further condemns us into an abyss of unprecedented poverty and hunger.

The result of this initiative is a huge disparity in terms of economic development, yet we are the main producers of the raw materials, which drive their economies, leaving us moving around the world with begging bowls.

The outcomes of such a sad trend is political and economic domination and unbalanced market trade, which leave Africa, the main producers of raw materials poorer.

Zimbabwe and the developing world are then rewarded with either humanitarian aid which is wiped off by consumption without any economic activity or "development aid" which, when we are given, carries with it strict conditionalities that make it difficult for Zimbabwe and the developing world to economically develop themselves.

This is when and why we give credit to luminaries such as President Mugabe for trying to close down this huge economic disparity by coming up with the Indigenisation and Economic Empowerment Act. By any means, such measures should be seen as platforms for Africa’s economic independence. They boost our sense of ownership, pride and total control of our resources.

The Indigenisation and Economic Empowerment Act should not be seen as a hindrance to investment promotion, but a chance to empower indigenous Zimbabweans.

President Mugabe said as much when he said "such policies as the Indigenisation and Economic Empowerment Act should not be viewed as obstacles to investment promotion".

He added that the importance of participation by the locals was key to development.

"Rather, they should be welcomed as promotive of the greater participation of our people in the economy, indeed, as the democratisation of our economic activity that builds up to good business returns for the investor."

Local participation is the key driver in the economic development paradigm as it lingers on the ultimate objectives of national development which are economic development, equitable distribution of facilities, resources and benefits, equal distribution of social and economic benefits, information and education.

All this should be coupled with popular participation in economic development planning and execution accompanied by decentralisation of activities at the social level, which is key in this thrust of economically empowering the locals through their equal economic participation.

Commenting on the need to have a locally driven economy, in The Herald July 6, 2009), Michael Gomo brought about two important issues which are key to economic development for the country.

The first was about the exclusion of the majority in the current debate on the resuscitation of the country.

"Debate around the resuscitation of Zimbabwe’s economy seems to be centred on a capitalist model that excludes the majority as important players to development."

This exclusion is not healthy for the country’s social and political well-being as it translates to pronounced levels of poverty and hunger which then transcends to rioting and instability which the West so craves.

The second issue he raised was the manipulation by the global market through the calls for the revision of indigenisation laws, to which he said:

"Calls for the revision of indigenisation laws are not only myopic and one-sided, but are purely capitalistic in nature and will have dire consequences for the ordinary people of Zimbabwe."

To this end, he called for the adoption of a family-based economic development system. This is a concept which he says is of utmost importance to the individuals concerned because "each family member has a responsibility to ensure the business succeeds, not only for purposes of creating wealth but also for improved quality of life for the family".

This is the kind of investment that we need, as it moves the country forward by empowering locals.

The 15,4 million euro deal recently signed by the Government and the Food and Agriculture Organisation and is intended to benefit about 150 000 small-holder farmers under which qualifying rural households will access inputs for the 2009/10 agriculture season is a welcome move.

As the dust settles on the Zimbabwe international Investment Conference, it is our hope that the delegates will tell their people that Zimbabwe has always been ready to receive investors.

But whatever investment is made, it should benefit the locals and their communities if we are to realise President Mugabe’s dream of economic empowerment for the people of Zimbabwe through total control and extensive exploitation of our resources.

We continue to pray for our Zimbabwe so that some of us can see the light.

Labels: CEE, CEEC, ECONOMIC EMPOWERMENT, NEOCOLONIALISM, NEOLIBERALISM

posted by MrK @ 4:43 PM