Zimbabwe`s Growing DEBT Crisis: A Developmental State Hindrance

Comrades the Zimbabwean economy remains characterised by huge budget deficits, a growing debt stock, and a declining economy which negatively impacts on citizens` livelihoods. 2018 statistics from the Ministry of Finance and Economic Development as well as the Reserve Bank of Zimbabwe indicate serious economic and debt crises.

The country’s budget deficit is US$1.3 Billion dollars, the Current Account deficit is US$1.5 Billion dollars. Compounding this macroeconomic instability is the growing DEBT stock. Domestic Debt is at a staggering US$9.5 Billion dollars, External DEBT is US$7.4 Billion dollars which amounts to a total national DEBT of US$16.9 Billion dollars.

Comrades the economic mess does not end here, we have a Reserve Bank of Zimbabwe Overdraft of US$2.3 Billion dollars which is way above the Statutory limit of US$762, 8 million dollars. To make matters worse, Cumulative Treasury Bill Issuance stands at US$7.6 Billion dollars. Speaking of the toxic Treasury Bills comrades, The Treasury Bills to Gross Domestic Product Ratio is 36.5% and inflation is 4.9 %. Surely the motherland`s economy is in a recession fast tracking itself toward a depression. The economy is refusing to yield to the fake nationalists in Zanu and unlike the July 30 election, this economy is refusing to be rigged.

But we warned these people comrades. We told them that the economy has got its own way of fighting back, of exposing the fake and the uninitiated. We told them to conduct a free, fair, transparent and verifiable election and the masses of our people will have the chance to choose a leadership with the craft competence, the care and the vision to tackle the present challenges. Presently one senses fatigue amongst the class of 2018, indifference, deflation and a sense of structural illiteracy.

Coming back to the DEBT crisis comrades. We continue to call for the unconditional cancellation of Zimbabwe`s debt as a prerequisite in any attempt to resuscitate development in the country.

As long as the issue of DEBT cancellation is not addressed, Zimbabwe`s so called economic recovery plan (T.S.P, Vision 2030 or whatever cosy name they call it) will become a pipe dream if not a perpetual nightmare.

As long as the issue of DEBT cancellation is not adequately addressed, any economic endeavours will be futile because the DEBT burden is the biggest stumbling block to the country’s development and that of the entire African continent.

DEBT is a tool of political control since the lender can dictate conditionalities so there is no way we can take charge of our own destinies when in fact our chronic INDEBTEDNESS surrenders over our future to boardrooms in Washington, Paris, Brussels, London and other imperialist capitals.

Instead of the neo-liberal menu that government is so foolishly bent on pursuing, we submit that what is needed is a shift towards participatory economic models (a democratic developmental state) and a willingness to introduce wide-ranging redistributive mechanisms.

This would involve a developmental state, progressive taxation, a war on corporate sector/elite tax evasion, collective and State ownership of strategic resources and the equitable distribution of land and access to services,,,

This alone will rescue this country from both the DEBT burden and the present economic quagmire,,, Failure to take heed to this advice will be a serious provocation to the DEBT choked Zimbabweans. However, the masses of our people will never accept to live under DEBT and economic-governance forever. After all, it is the duty of the oppressed to revolt.