(TALKZIMBABWE) Gono shames the West

Gono shames the West
Felix Makanza (pseudonym) - Opinion
Sat, 10 Oct 2009 19:02:00 +0000

THE Brussels-based Bruegel research group urged European Union finance ministers to set a deadline for member states to withdraw credit guarantees for banks to spur them to raise new capital and write off bad loans. This is a policy akin to that advocated in Zimbabwe by Reserve Bank Governor Dr. Gideon Gono.

“Bank recapitalization and restructuring should be completed in all EU countries as a matter of urgency,” the institute said in a report on post-crisis exit strategies.

The European Central Bank head Jean-Claude Trichet on Thursday told a news conference that EU Banks should strengthen their capital bases, and take advantage of governments measures, particularly in recapitalization.

It is very important for the western community to acknowledge that Dr. Gono was the first governor of a reserve bank to propose recapitalization of banks.

This policy recommendation is now widely accepted in the UK and USA for lending to small firms and individuals.

Yet the same people criticise Dr. Gono.

It is clear that these people usefully employ double standards. They hate academics and practitioners who are competent, in favour of people like finance minister Tendai Biti and Prime Minister Morgan Tsvangirai.

Western reports suggest that the financial crisis is likely to be overcome as a result of the implementation of 'Gonomics'.

Aganist this backdrop, Zimbabweans should realise that western countries are cunning. The success of Zimbabawe is not good for them.

In this world, the known fact is that countries compete with one another. If developing countries progress to industrialisation, there will be no more organic food in the "obese UK and USA".

Dr. Gono should stay. Zimbabweans should be wary to set the wrong precedent. Terminating employment contracts for indviduals beacuse of political pressure should never be tollerated in Zimbabwe. If former US president GW Bush remained in power for killing innocent Iraqis, now Afghans, and British PM Gordon Brown continue to be there, then Dr. Gono should stay.