Maravi

(TALKZIMBABWE) Biti storms out of Cabinet as pressure mounts

Biti storms out of Cabinet as pressure mounts
By: Ralph Mutema
Posted: Friday, June 18, 2010 8:40 pm

FINANCE Minister Tendai Biti stormed out of a Cabinet meeting this week as his plans to have an International Monetary Fund (IMF) staff-monitoring programme (MTP) for Zimbabwe hit snag.

The IMF is considering introducing an MTP for Zimbabwe, after efforts to declare it a Highly Indebted Poor Country (HIPC) were met with resistance by the government. Mr Biti, who was also in favour of the discredited HIPC programme, is said to be in favour of MTP.

An IMF mission visited Harare during June 2-10, 2010 to "review recent economic developments" under the banner of "technical assistance". Mr Biti also wanted the IMF to assist his ministry in the preparation of the Mid-Year Budget statement.

The team met with Mr Biti, Minister of Economic Development Mr Elton Mangoma, Minister of Youth and Indigenization Saviour Kasukuwere, Minister of Mines and Mining Development Obert Mpofu, Reserve Bank of Zimbabwe (RBZ) Governor Dr Gideon Gono, and other senior government officials, as well as representatives of the business and diplomatic communities.

Sources in the inclusive Government say Mr Biti was the only official who felt that Zimbabwe needed to invite IMF officials to "help" with formulating strategies for Zimbabwe's debt restructuring.

Former Acting Finance Minister and now Minister of Justice Patrick Chinamasa and Foreign Affairs Minister Simbarashe Mumbengegwi vehemently opposed Biti's plan to "mortgage our country's resources to international financial institutions".

Mr Biti is said to have come under extreme pressure to justify his affinity for IMF policies and stormed out of the meeting.

Cabinet members, especially from Zanu-PF, are said to be opposed to the idea of including an IMF team as the IMF-sponsored Economic Structural Adjustment Programme of the 1990s was a total failure.

Zanu-PF ministers say as the economy has grown about 4 percent last year and consumer prices fell about 8 percent, and bank deposits tripled, there is no need to have Zimbabwe declared a HIPC country and there is no need to adopt IMF reform policies. They are happy with IMF providing only "technical assistance", and nothing more.

Mr Biti is reportedly also under pressure from IMF bosses who met with him last month in Washington to come up with a programme that includes the IMF.

Minister Chinamasa argued that an SMP would see Harare surrendering to the Bretton Woods institution some, if not all, of its independence in economic formulation and implementation. Similar programmes have been introduced in countries such as Sudan, Togo, Liberia, Republic of Congo and the Former Yugoslav Republic of Macedonia.

According to Chinamasa, Zimbabwe is not at the stage that these countries were and is endowed with many natural resources that can help the country develop. He said the illegally imposed western sanctions have to be removed so that Zimbabwe can develop.

President Mugabe, who was surprised by Mr Biti's behaviour, was said to have remained calm and continued with chairing the weekly meeting.

Labels: HIPC, IMF, MDC, NEOCOLONIALISM, NEOLIBERALISM, TENDAI BITI

posted by MrK @ 4:39 PM