The answer to the question of how Zimbabwe’s economy has fared under its unity government lies somewhere between its much improved economic data, and the growing frustration of the country’s workers.
The statistics tell a story of a remarkable recovery from years of decay, but a crippling strike by government workers shows how little that recovery is being felt on the ground.
Zimbabwe’s once horrifying economic statistics have looked good over the past year. Inflation, which had peaked at 500 billion %, slowed to 7,7% after the new government abandoned the Zimbabwe dollar. Industry capacity utilisation is up to as high as 45%, according to latest central bank data, compared to a low of 10% before the unity government.
After shrinking by 40% over the past decade, Zimbabwe’s economy grew by a better-than-expected 4,7 % in 2009. While world markets are heading south, Zimbabwe’s stock market is expected to rise over 30% this year, according to Russian fund Renaissance Capital.
But the big boom in investment and donor aid many had expected never came.
“The corner has been turned but it’s going to be a long-haul,” says Tony Hawkins, professor of business at the University of Zimbabwe.
Much of the world remains sceptical of Mugabe, and the bickering leaves questions as to how long the coalition can hold.
The unity government has plodded along for a year with no real foreign aid, getting by on improved revenue collections. But these have not been enough to create a recovery felt by all.
“The people are agitated. They have lost their patience,” said Cecilia Alexander, head of the Public Service Association, a union of government workers.
On the government’s first anniversary, civil servants have gone on strike, frustrated after living on US$100 a month for most of the past year. Anger has grown steadily as workers watched their welfare ignored as ministers fought over perks and power.
At a rally for government workers in central Harare last Friday, unionist Tendai Chikowore was cheered when she criticised the government for focusing on their “personal lifestyle” while ignoring the poor.
“When the unity government was formed, we all rejoiced thinking this was the end of all our problems. But there is a lot of bickering about this and that, and nothing about our welfare,” Chikowore said.
Last year, the government spent $20-million on overseas trips, more than five times more than what it spent on salaries for its workers.
Expectations had been high that a new breed of opposition ministers would arrive in government to sweep away the greed of Mugabe’s cronies. But much time has been spent instead in fights for places at the feeding trough.
Last year, after public alarm after government ordered 4x4s and Mercs for each of the over 70 ministers, the MDC’s Nelson Chamisa retorted that bling was necessary show who was boss: “It (a luxury vehicle) is a symbol of authority and power. If you don’t have it, people will think you don’t have power.”
Senior officials still jostle for endless foreign trips, on which they get hefty allowances. Last week, in a token gesture, government issued an order to ministers to cut down on the size of their delegations on foreign trips. But that token gesture might not be enough to soothe the hungry masses.