IMF is Co-Author of Zimbabwe’s Economic Chaos

IMF came with their ESAPs and forced the Zimbabwe govt to privatise and retrench workers.

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President Mnangagwa and his mentor, former President Robert Mugabe
President Mnangagwa and his mentor, former President Robert Mugabe

They conspired to destroy our economy, albeit in 2 phases. As of 1990 our economy was doing great.

BY Farai Maguwu

Our currency was stable, Approximately over 60% of our people were above the poverty datum line. IMF came with their ESAPs and forced the Zimbabwe govt to privatise and retrench workers.

Currency devaluation was strongly recommended against all logic and best practice in the world. Our purchasing power parity as a nation was eroded. Mugabe became increasingly unpopular whilst in Zimbabwe Kaunda’s long reign came to an end due to the IMF imposed SAP.

Facing growing unrest Mugabe radicalised himself to remain in power, the regime became more and more repressive and unresponsive to demand for public goods.

Zimbabwe ended up defaulting on its arrears to IMF due to the economic meltdown triggered by, among other things, ESAP. Not taking any responsibility for the mess they created, IMF suspended Zimbabwe in 2003, withdrawing its voting rights. This international isolation further radicalized Mugabe and ZANU PF who saw it as part of the regime change agenda aimed at turning public opinion against the government.

ZANU PF took over from where IMF left, utterly destroying what was remaining of the Zimbabwe economy. To therefore expect the IMF to come and give constructive advise to Zimbabwe is as good as Nelson Chamisa expecting Thabo Mbeki to return to Zimbabwe and frame a democratic transition, or less, a fair power sharing deal.

Even though we have no economy to talk about and 3/4 of the population is starving, Zimbabwe has dug deep into its depleted resources to repay the IMF high interest debt. The IMF has also ordered Zimbabwe to pay back loans owed to the African Development Bank, World Bank and the European Development Bank. The odious debt itself is part of grant theft by IMF which keeps giving loans to a government that does not account to its people and reap massive interests from a poor country like Zimbabwe. There is no audit of the loans – how the funds were utilized.

The logical thing to do is to ensure Zimbabwe simply stops borrowing but this throws IMF out of its filthy profitable lending business