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(TALKZIMBABWE) IMF criticised over 'staff monitoring programme' for Zim

IMF criticised over 'staff monitoring programme' for Zim
By: TZG, VOA, sources
Posted: Friday, June 4, 2010 9:28 am

THE IMF executive board has been criticized for its proposals to institute a "staff-monitored programme" in Zimbabwe in return for debt-forgiveness.

Wrapping up a so-called Article IV consultation with Zimbabwe last month, the Bretton Woods institution concluded that Harare "must adhere to strict economic policies to attract foreign direct investment".

Zimbabwe's inclusive Government is divided along party lines over the proposal by the International Monetary Fund to launch the programme.

The country has some US$7.2 billion dollars in external debt, the IMF recently said.

The Zanu-PF party of President Mugabe says agreeing to IMF "staff monitoring" would erode the country’s independence and leads to more economic mayhem. Zanu-PF rejects reliance on foreign investment, instead urging Planning Minister Elton Mangoma to tap domestic resources to fund capital requirements estimated at US$11 billion.

The Movement for Democratic Change formation of Prime Minister Morgan Tsvangirai, which initially wanted Zimbabwe declared a Highly Indebted Poor Country, unsurprisingly welcomed the IMF recommendations despite having not worked anywhere else in the world.

Staff monitored programmes have been put in place in Chad, Sudan, Togo, Liberia and the Democratic Republic of Congo, as well as Macedonia, with disastrous outcomes.

Planning Minister Mangoma said Cabinet is still discussing the way forward on the economy and the IMF role in debt relief and reconstruction.

Meanwhile Wednesday, business leaders from Ghana and Zimbabwe were meeting in Accra, Ghana, aiming to bolster trade relations.

Deputy Prime Minister Arthur Mutambara led a delegation of ministers and Zimbabwean business leaders to the Zimbabwe-Ghana Business Forum and Exhibition.

About 50 Zimbabwean and 400 Ghanaian companies are taking part in the forum as Zimbabwe seeks a larger share of the $18 billion that Ghana spends annually on imports.

DPM Mutambara said the forum offers a platform for investors from both countries to identify opportunities to increase trade in both directions.

"In Zimbabwe we have the land, agriculture, mining and all so Ghana can tap our rich experience in the agriculture sector while we can also learn from Ghana's banking sector which has seen a lot of reforms and is very good," DPM Mutambara said.

Ghanaian Deputy Trade Minister Mahama Ayariga told journalists: "The best way forward for African countries is to trade among themselves and the initiative by Zimbabwe is a step in the right direction."

Asked by journalists in Ghana about new elections in Zimbabwe, Mutambara said Zimbabwe will not rush things. "We are busy working on electoral reforms, economic, political reforms and constitutional reforms that will make our elections free and fair," he said.

"In Zimbabwe the question should not be about how soon elections should be held, it should be how to organize quality elections. There will be no elections until such time that we are ready."

Asked when elections were likely to be held, DPM Mutambara responded: "It will not go beyond 2013. We want to make sure that everything is set before elections are held."

Labels: ARTHUR MUTAMBARA, GHANA, IMF, NEOCOLONIALISM, PANAFRICANISM

posted by MrK @ 8:32 PM