The International Monetary Fund suspended Zimbabwe’s voting rights in
June 2003 as the country’s economy deteriorated and President Robert
Mugabe’s government fell behind on debt repayments.
A new unity government formed by Mugabe and old rival Morgan Tsvangirai
has given Zimbabweans hope of rebuilding the economy but Western
countries are still holding back crucial funding and demanding
political and economic reforms.
The IMF and other foreign donors have in the past halted aid over
policy differences with Harare, including its controversial forcible
redistribution of white-owned farms among blacks
"The IMF stands ready to continue to assist the authorities through
policy advice. Technical and financial assistance from the IMF will
depend on establishing a track record of sound policy implementation,
donor support and a resolution of overdue financial obligations to
official creditors," the IMF said in a statement.
"Going forward, strengthening the investment climate, ensuring
protection of property rights, and maintaining wages at competitive
levels will all be essential for increasing domestic and foreign
investment," it said at the end of a two-week visit to Zimbabwe by an
IMF team.
The IMF says it was owed $89 million at the end of February 2009. The
World Bank says Harare owes it $600 million, and the African
Development Bank says it was owed $429 million as of the end of June
last year.
Tony Hawkins, a professor of business studies at the University of
Zimbabwe, who met the IMF and World Bank mission last week, said the
team had been encouraged by the steps taken by the new government,
including preventing the central bank from running the economy.
"But until the Western governments, who are the main IMF shareholders,
change their attitude, there is no money coming our way any time soon.
They want to see who is really in control and an issue that comes to
mind is that the government says it will not tolerate land invasions
and yet they are still continuing."
Zimbabwe’s economy is in ruins with unemployment at around 90 percent
but data on Tuesday showed consumer prices fell in January and February
after the government let shops use hard currency and abandon the
virtually worthless Zimbabwe dollar.
The government has also launched an economic recovery programme that
envisages political reforms to win back donor aid, although Western
countries remain cautious.
"Making further progress in structural reforms is essential for
reviving economic growth and reducing poverty. A number of positive
steps that are in line with previous IMF recommendations have already
been implemented, including price liberalisation," the IMF said on
Wednesday.
Reuters
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