Mugabe hints on launching suspicious economic policy

By Henry Makiwa
3 October 2007

Robert Mugabe’s government on Wednesday, amid much scepticism presented to governors, legislators and journalists in Harare its latest scheme to arrest the world’s highest inflation.
Mugabe announced last November that he would be introducing the Zimbabwe Economic Development Strategy (ZEDS). The plan aimed to run between 2008 and 2010 sets out to “create wealth and reduce poverty among the indigenous people.” In what many dismissed as the ageing despot’s attempt to buy in favours, Mugabe said the strategy would have the backing of SADC and the civil and business society in Zimbabwe.

On Wednesday, Judith Kateera, the permanent secretary in the Ministry of Finance, expressed much optimism that Mugabe’s latest economic plan will end the country's economic crisis, despite already having sanctioned more than half a dozen previous blueprints that all failed.
Of much interest, observers note, is how the government is willing to run the reform plan only once next year's elections are out of the way. This suggests that the planned programme includes reforms that could be painful for ordinary Zimbabweans.
Analysts are however sceptical that the plan will deliver the goods where it’s other predecessors have faltered.

Journalist Kumbirai Mafunda said: “The strategy is unlikely to achieve much. At least it will further compound the evident differences between Reserve bank head Gideon Gono and Finance minister Samuel Mumbengegwi. At most, it will go down as another high-sounding nothing as none of the government’s plans have ever been followed through to the end.”
Zimbabwe's annual inflation tops an estimated 7000 percent, the highest in the world. The country's economy has shrunk by almost a third since 2000. And there are regular shortages of everything from fuel to basic food staples.

Mugabe however lays blame on the western sanctions and trans-national businesses for sabotaging the economy. He has recently been on the warpath against the business sector, which he accuses of supporting a regime change agenda allegedly being pursued by the main opposition party and its allies.
Business leaders have denied the charge.