Crumbling empires, lessons for Zimbabwe

Zimbabwe cannot continue to look or seek inspiration from western institutions and philosophies because it will find none.
The growth of the so-called Asian Tigers has been independent of the West.
China has grown phenomenally in 40 years when its very systems of economy and governance have been excoriated in the West.
Tichaona Zindoga
Following the speech by British Prime Minister David Cameron at the World Economic Forum in Davos, Switzerland last week, one would sense the desperation of the captain of a sinking ship.
This is not particularly surprising.
One Chinese paper’s editorial was spot on when it said “the UK is not a big power in the eyes of the Chinese … It is just an old European country apt for travel and study”.
The UK is no longer a big power to many countries, not just the Chinese, except in places where its glorious past is considered with nostalgia and fear.
Cameron’s speech was important in more ways than one, and could provide lessons to countries such as Zimbabwe.
He admitted that Britain and Europe were no longer the big powers they were.
He conceded: “For years the West has been written off. People say that we are facing some sort of inevitable decline.
“They say we can’t make anything anymore.
“Whether it’s the shift from manufacturing to services, or the transfer from manual jobs to machines, the end point is the same dystopian vision; the East wins while the West loses; and the workers lose while the machines win.”
It is because they have not had the “fundamentals of our economies”, are indebted and uncompetitive in light of globalisation.
Then Cameron makes his move.
He begs (in the noble way, of course) for investment in Britain.
“I think there is a chance for Britain to become the ‘Re-Shore Nation’,” says he, by which he means that companies need to invest in Britain rather than locate to areas where the economic fundamentals are right.
The depredations that Europe is facing train a critical eye on the need for countries like Zimbabwe to craft and pursue policies that essentially deal away with the failed models of the West.
Zimbabwe cannot continue to look or seek inspiration from western institutions and philosophies because it will find none.
The growth of the so-called Asian Tigers has been independent of the West.
China has grown phenomenally in 40 years when its very systems of economy and governance have been excoriated in the West.
Of course, the tables have turned and Western companies are now off-shoring to China.
Western governments have also begun looking East, which has been an and unfamiliar and humiliating experience for them, as it has made them recipients of a few unsettling home truths as such Cameron received, alluded to above.
Zimbabwe, in looking East, has two objectives.
First and clearly, is looking for money through loans because that is where the money is nowadays, while the politics could be friendly too.
The second imperative is attracting investments to the country from these moneyed economies.
It may be pointed out that there is nothing inherently wrong in Western corporations’ investments in Zimbabwe.
As long as the politics of the West do not precede the investments.
They often do, however.
This has been even to the detriment of the same western governments as they have lost ground in Africa, for example.
Investment in Zimbabwe, especially in value addition and manufacturing, will give impetus to the economy and create employment.
The other instructive thing from Cameron’s speech relates to how to recover investment ground, “re-shoring” in his old Britain, and how Zimbabwe can attract new investment.
He cites the overall business environment and cheap and predictable sources of energy.
Zimbabwe would do well to strengthen its macro-economic structure, which requires coherent and consistent policies.
The current uncertainty about the indigenisation policy, for example, is needless.
We have noted how inconsistent pronouncements on the matter have been.
The new Indigenisation and Economic Empowerment Minister Francis Nhema has at times appeared to contradict his predecessor Saviour Kasukuwere.
Minister Kasukuwere was once involved in a rather nasty verbal war over the issue of indigenisation of the banking sector.
The issue of indigenisation is about the biggest investment concern today clarity on which should be paramount; nobility of which should not be compromised.
The Zisco-Essar deal is said to have been stalled at some point due to the interpretation of the policy of indigenisation.
Again, this is needless.
The environment would also do with enforced and enforceable regulations that deal with corruption and corporate governance, property rights.
A country, or at least a clique thereof, that requires kickbacks to facilitate mega deals with investors, is a sure turn-off.
On the other hand, Zimbabwe offers an attractive destination because it is well and richly endowed with natural and human resources.
Resources are an attraction in and of themselves, while adding value to them will create employment and a large pool of downward activity.
Zimbabwe has no oil.
However, that should not stop it from utilising other sources of energy namely hydro-power and coal and natural gas.
The challenges that Zimbabwe has faced in relation to the power sector are rather a problem of lack of capacity utilisation, which should be surmounted if the Government commits itself to it partly in seeking partnerships with agreeable foreign companies that can deliver the goods.
Infrastructure development will ensure that Zimbabwe becomes an attractive destination.
The task at hand is not necessarily to build new things.
But simply to repair the existing infrastructure that has crumbled under our watch, due to various reasons.
Repairing and upgrading roads and road networks as well as resuscitating the National Railways of Zimbabwe will make doing business easier. When Zimbabwe addresses the economic fundamentals while also doing the right things, and be seen to do the right things, it will become a good investment destination.
It can again be the bread basket of Africa.
 At any rate, it is even better than old Britain in many respects.