Foreigners have killed our economy

The World Bank says the 2014 outlook for Zimbabwe’s ailing economy is increasingly uncertain. According to the World Bank’s September economic briefing, the economy faces uncertainty both from expected volatility in the global economy and on the domestic front after the contested July 31 elections amidst worsening macroeconomic indicators and increased vulnerability of the banking sector. Below are excerpts of the outlook report: As the US Federal Reserve Bank starts unwinding the recent expansionary monetary stance, emerging markets may face increased volatility due to expected capital outflows and possible volatility of international commodity prices. Year 2013 global growth is expected to remain slow, at 2,2%, held back by rather weaker high-income countries growth (1,2%). Although financial conditions in high-income countries have generally improved, growth in the Euro area remains subdued by the still weak confidence and continuing banking sector and fiscal consolidations.

The World Bank says the outlook for Zimbabwe’s economy for 2014 remains uncertain due to a number of internal and external factors, including the expected volatility in the global economy. Zimbabwe's increased political repression, descent into economic collapse, and growing international isolation have an impact well beyond the country's borders. Donors, who have been developing strategies for dealing with 'difficult partners,' have been frustrated by their inability to encourage a more positive direction for the country. Some analysts always lie that the future is blooming but the truth is our future lies in the hands of the Chinese hence, the introduction of their currency into our country. On current trends, Zimbabwe’s economy is about five years away from a full gravity-defying recovery.

By the normal laws of economics, Zimbabwe’s government ought to have collapsed – but the global spike in mineral prices has changed things. Suddenly, the diamond mines became more valuable than ever and Chinese investors turned up willing to do business with Mugabe without any of the qualms shown by the West. Instead of being lectured by the International Monetary Fund, he was being offered his gilded place in China’s fast-growing African empire. Even now, officials in the Foreign Office talk about what to do with Africa as if the old colonial master still had substantial clout to wield. Tony Blair has admitted that he laboured under this delusion until he left office, only later realising that China had come from nowhere to be Africa’s biggest single client and most influential ally. That influence can come via Chinese government enterprises. In Zimbabwe, the press is full of signs of China’s growing influence. There is talk of giant television screens being erected in Harare to transmit Chinese news.

But the other old argument for change – that Zimbabwe’s prosperity can only come with the restoration of its old freedoms – has taken a knock in recent years. Mineral mining vies with oil trading as the worst form of capitalism, bringing money without the need for liberty. To grow rich on farming and manufacturing requires the rule of law, education, property rights and economic liberalisation. We just need people who can cut deal with foreigners who want to drill for oil or diamonds.

IF WE JUST LEAVE OUR LIVES’ IN THE HANDS OF THE CHINESE, WE ARE GOING TO REMAIN POOR FOR THE REST OF OUR LIVES.

ZIMBABWEANS WE NEED TO BE WARY!!!!!