This collapse of industry has been a knock-on effect of the collapse of agriculture: as agriculture
diminished, so did consumer spending on industrial outputs; as some industries consequently
produced less, the demand by these industries on others diminished. Run away inflation
combined with unviable price controls, poor fiscal policies and an artificial foreign exchange
rate have also crippled industry. Government statements of intention to seize industries and a
few ad hoc “invasions” of companies have reduced confidence of potential investors.
The IMF closed its Harare office in September 2004, after releasing a report that noted that the
fall in Zimbabwe’s GDP of 30% in the last five years, with a further fall of 4,5% forecast for
2004, was the result of “inadequate economic policies".40 It noted that "disorderly
implementation" of the land reform programme has "sharply reduced" agricultural production.
According to the IMF, the economic decline has had "dire social consequences"; unemployment
is high and increasing, social indicators have deteriorated and the HIV/Aids pandemic remains
"largely unchecked". "Severe food shortages" have caused a "vicious cycle of malnourishment
and disease".
The IMF cites issues of governance, the rule of law, human rights and property rights that have
"severely damaged confidence, discouraged investment and promoted capital flight and
emigration". Citing the "disruptive effects" of land reform, the IMF quotes an official report that
found that actual resettlement of 134 452 families and 6,4m ha fell far short of government's
claimed 350 000 families and 11m ha. Independent reports estimate unemployed farm workers
and their families at more than 1m people, or about 9% of the population.41
The government has recently expressed an intention to indigenise 50% of all mining ventures,
sending insecurity through this sector. The President of the Mining Association has warned that
statements from government are jeopardising six projects that would involve substantial
investment and job creation. Aquarius Platinum, a major investor in Zimbabwe has warned
shareholders of the intended government grab. It is unlikely that major companies will continue
with investment in new projects, in the wake of the land invasions, and in the face of looming
nationalisation or forced giving of shares to indigenous Zimbabweans.42
The government intends to force through parliament before the end of 2004, an NGO Act that
will force all NGOs to register with a government council. This Act bans foreign funding for
NGOs involved in human rights and governance, and forbids NGOs with any foreigner on their
Board from registering. Apart from the serious implications of this for democracy, around
10,000 jobs in the NGO sector hang in the balance.
It is usual in the definition of who should be given refugee status, to exclude those considered
“economic refugees”. Yet the evidence in Zimbabwe is so glaring that the demise of the
economy has been wilfully induced by the ruling party, which has knowingly destroyed a
functioning nation in order to extend its own reign of power, that the international community
should be considering recognising as political refugees those who now flood out of Zimbabwe
into the region for fear of not being able to feed, clothe and educate their children. Around a
million farm workers and their families have been deliberately deprived of their livelihoods,
their homes and their entire infrastructure. Hundreds of thousands of industrial workers and their
40
The Financial Mail, (SA), IMF’s strange mouthings hit Bob, 1 October 2004, for all references to the IMF report
in this paragraph.
41
Ibid.
42
IDEX (USA), Zimbabwe aiming for 50% black ownership of mines, 4 October 2004; Mineweb, (SA), Aquarius
warns of Zim mine grab, 6 October 2004.
28
Select target paragraph3
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