Zimbabwe is falling deeper into economic and social misery as a result of poor governance and corruption in the African nation, the International Monetary Fund (IMF) said on Friday.
In its annual review of the country’s economy, the IMF notes that conditions in Zimbabwe ”have continued to deteriorate”, with the economy and social conditions suffering from poor governance and a lack of respect for rule of law.
The report blames the country’s deepening ills directly on President Robert Mugabe’s government.
IMF directors ”saw the crisis as resulting mainly from inappropriate macroeconomic and structural policies, including weak financial management, distortionary controls and regulations, and the disorderly implementation of the fast-track land reform,” the report says.
”More broadly, directors regretted that weak governance, corruption and the lack of respect for the rule of law have undermined confidence and led to capital flight and emigration, with negative spillover effects on neighbouring countries.
”Unemployment is very high and increasing, social indicators have worsened and the adults are HIV-positive.
”Severe food shortages have necessitated massive food imports and donor assistance.”
IMF executive board members ”expressed grave concern over the continued sharp economic decline and high inflation in Zimbabwe, which are having dire consequences for the country’s population, notably rising unemployment and the rapid deterioration of social indicators, that in the past were among the best in Africa”.
The IMF said a ”disorderly implementation” of the government’s land-reform programme contributed to a sharp reduction in agricultural production and that ”the continued lack of clarity about property rights … severely damaged confidence, discouraged investment and promoted capital flight and emigration, thus contributing to the economic decline”.
The government embarked in 2000 on land reforms that saw veterans of the liberation war along with pro-government supporters invading white-owned farms.
The IMF said Zimbabwe’s economy declined by 9,3% in 2003 and ”another broad-based decline is projected this year”, while inflation reached 600% between November 2003 and February 2004.
The IMF, which had in the past supported the Harare regime, said in July the country had six months to pay its arrears or face expulsion from the international organisation.
The country owed about $288-million to the IMF in April 2004.
To address the most urgent needs, IMF officials recommended that authorities ”address the impediments to improving food security, including by replacing the monopoly of the Grain Marketing Board with well-targeted basic food subsidies”.
It noted that Zimbabwe’s refusal to cooperate with the World Food Programme could leave the country ”without a basis for a timely appeal for food aid, with serious humanitarian consequences should the crop fall short of the government’s ambitious estimates”.
Based on Zimbabwe’s request, the IMF will maintain technical assistance to the government, including ”policy advice to help the authorities formulate and implement a comprehensive and consistent package of measures”. — Sapa-AFP