A leading economist has said the inclusive government is struggling to attract international aid, but this has more to do with distrust of Robert Mugabe than donor fatigue or concern about the MDC.Western donors remain sceptical about a government still headed by
Mugabe, and say money will be provided only when reforms are
implemented.
Luke Zunga, a South African based Zimbabwean economist, told us the
lack of funding is expected to hamper plans to meet the humanitarian
needs of millions of Zimbabweans and help in the early recovery
programmes.
Although the world is going through financial turmoil, western
countries have the resources and ability to kick-start the country's
recovery programme. But there are human obstacles standing in the way,'
Zunga said.
The lack of funding is a vote of no confidence by the donor community
against Mugabe and his security and military leaders, notorious for
their history of oppression, corruption and the destruction of what had
once been a thriving economy.
The international community has not forgotten Zimbabwe. The money has
not come in because there is a lack of transparency, accountability and
lack of the rule of law. What makes it worse is that Mugabe has not
repented and continues to use combative language instead of urging
reforms,' Zunga said.
Meanwhile, it's reported South Africa is considering opening credit lines to help the Zimbabwe rebuild it's shattered economy.
The South African Financial Mail quotes Finance Minister Trevor Manuel
as saying credit lines made sense, given that most of the goods needed
in Zimbabwe would be bought in South Africa.
Zunga pointed out that while a credit line will not solve the country's
funding problems, it will allow private banks to lend money to
wholesalers, retailers and producers to purchase goods using credit,
and ultimately give millions of poor Zimbabweans easier access to
essential products.
Finance Minister Tendai Biti said the country needs US$1 billion now to
get farms, schools and hospitals working, and another $5 billion later
to fully rebuild the economy. Food and fuel are scarce and the currency
virtually worthless, leading to widespread use of the U.S. dollar and
South African rand.
A high-level International Monetary Fund mission will visit the country
next week, after a two year break, to assess the economic situation and
humanitarian crisis.
The visit is not expected to lead to financial aid, but will give
lenders an idea of the direction of the government's economic policy.
SW Radio Africa
Post published in: News