A decline in economic index

Whenever people are talking about economy, they have associated it with money concepts. however the term itself is broad to include how scarce resources are to be delivered and disbarsed throughout a population . Even if a country has so much money, that will not put it at abetter position. it is true that poverty is different   according to region and what those people are lacking but when it comes to money, it just makes things better for other  people but not everyone will have it to buy what ever they need to use for their daily lives. Many countries suffer from different problems from the political to the social and cultural issues that sometimes affect development and infrastructure growth some how.

overthe past 20 years history of freedom index, Zim's  economy has dropped by 13 points. and this is a sign that things are not flowing in the country. Instead of showing a growth in the economic sector, everything is just down. Despite many donors who are coming to the country with so much to offer, most of these projects suffer risks of failure because they are not being drafted  by the people. It is not the people who are calling for them but its these donors who are sort of imposing these projects on us. If anything is imposed on people, seriously,how do we expect these projects to function normally and succeed at the end of the day, when some times people are given things that they do not even need? Am not against the idea of relief aids but it is always best  first to research on the targeted people then take it from there. If this is not done, it is obvious that the projects will not workout.

The situation today did not start yesterday, it was there from the beginning. Poor external policies have costed the country and it has never recovered from the situation that left the currency weak as they sent out troops to help out maintain peace in the DRC. And many people would ask what we were getting in exchange?was it oil, diamonds? if that was so, then why is it that the economy sharply dropped during this period of 1999-2001?

 More to this, years of hyper inflation have crippled enteprenual activity and undermined realisation of the country's economic potential. Adding to the drastic decline of the economic freedom is the inefficient judicial system and general lack of transparency

many areremoved but noone replaces them

With the prevailing economic situation in the country, all the employees of governmental institutions face a risk of losing their jobs every day. Firms are not doing very well despite the use of multi-currency. When the whole system was introduced, everyone thought that things would get better for everyone but actually the truth is that things have gone from better to worse.  It’s a few people who are living on more than a dollar and having more than three meals per day. And most of the firms are closing yet six months ago, the Affirmative Action Group (AAG) was having conferences in most of the cities trying t revamp the industries but all their efforts were in vain. Not so long ago, Meikles in Gweru closed down and Dairy board retrenched its workers. Bata Shoe Company has long since closed down and the retrenched workers have not yet been given their money.

As if that is not enough, the workers in Mutare face danger of losing their jobs, if the council does not do anything about it. Many organisations face problems with paying their workers because of low productions that are not producing enough profits for the companies to pay their employees.  Also, workers are not being paid properly because of the bosses who squander money and benefit themselves. Corruption has also contributed mainly to the collapsing and shutting down of many organisations.

Council management is citing low revenue inflows against a high wage bill as their reason for the proposed retrenchment and the councilors are against this idea because they fear that it would compromise service deliver and throw many on the streets. At least these councilors are thinking of what the tomorrows of these retrenched workers would be like if they are denied a way to earn some living. Instead of retrenching workers, why cannot all these companies find solutions that do not require having to terminate the contracts. It is of no use really to terminate contracts then at the end of the day, no one comes in and do the work that was supposed to be done by that worker whom you retrench. And after retrenching workers, do they expect the situation and the company’s performance to change?

I do not think that the way to go about it. Many companies have closed down after retrenching workers because of low production and low profits and too much competition. So the management teams must come together and have one spirit of coming up with new ideas that help them to generate revenue. They can even start projects that are so different from what they specialize in then these projects would generate more money for them to pay their companies and debts. The only thing that is needed is a company that is run by people who are not greedy and are able to think outside of the box when facing huge challenges. Also new blood must be employed in the management teams. By young blood l mean the youths, they must be given the chances to explore and expose what they have and the management must take them into consideration.

cold storage misuses a received boost from goverment

THE beef processing firm owns five abattoirs in Chinhoyi, Bulawayo, Masvingo, Marondera and Kadoma. A canning plant whose production is mainly for export operates from Bulawayo. The Bulawayo, Chinhoyi, Marondera and Masvingo abattoirs and the canning plant have been approved by the EU. CSC owns seven ranches and feedlots which are strategically positioned in the cattle producing areas of the country.

 The company’s strategy was to procure heifers and exchange them for slaughter stock with farmers. This was expected to bolster the growth of the national herd by accelerating the calving rate.

CSC has been facing difficulties in the past decade caused by among other factors, the depletion of the national herd and the emergence of vibrant private abattoirs since the liberalisation of the sector about a decade ago.Hence government has provided a US$1 million grant to the struggling meat processor, the Cold Storage Company Limited (CSC) for rebuilding the depleted national herd, official records showed this week, indicating that the programme has been ongoing since 2011. The grant was also expected to address throughput shortcomings in the short to long-term

 The viability of the company also suffered a major setback when the European Union (EU) suspended beef imports from Zimbabwe in 2001 following an outbreak of foot-and-mouth disease.

To improve its product offering, the Zimbabwe-Botswana joint disease control programme along the common border of the two countries, coupled with the commercial agreement with Botswana Meat Commission, started a programme where Zimbabwe would import 29 306 head of cattle from Botswana for direct slaughter. CSC said this arrangement only improved capacity at its Harare and Bulawayo operations. 

The Zimbabwe-Botswana cattle deal, however, later collapsed when CSC reportedly misappropriated the funds and ended up failing to pay the Botswana Meat Commission. Recently media in Botswana reported that the exportation of cattle to Zimbabwe had stalled because Zimbabwe still owed Botswana Meat Commission one million Pula. It has also been reported that Zimbabwe was reviewing its live cattle importation policy.

civil servants on the rise

TALKS between government and unions representing civil servants have failed to change the material position of government workers, many of whom are wallowing in abject poverty.Pressure is piling on ZANU-PF to tackle a cocktail of economic challenges that threaten to bring business operations and the economy to a halt.
ever since the new elected government have been elected into power, not half of the  promise for a better managed economy have been met so far. It seems that the victorious ZANU-PF administration is struggling to find solutions to the economic free fall and hence continues to dither over its promises.

Civil servants are waiting in the shadows for pay increments. There has been no clear indications that the increments would materialise as the powers-that-be are pleading bankruptcy. Civil servants gobble up nearly three quaters of government’s monthly revenue, hence the promised salary increments would further erode the  State’s meagre resources.

Failure to rise money for the civil servants due to limited resources, government shifted pay dates for the bulk of the civil servants as Treasury makes final attempts to finance its budget. this move might seem as a good one for the mean time, but as time go on, this will create   fertile conditions for a showdown between government and its employees, which might paralyse the economy. Civil servants’ unions have warned that they will not allow government to continue taking them for a joyride, after protracted wage negotiations that began at the end of last year.

u.s refuse with their coins

ZIMBABWE’S sour relations with the U.S has also affected the implemented plans of alleviating currency shortages. this comes after the failure of coming to agree on one thing on asking the U.S to give its coins to the government for usage.the multi currency economic system which seems to have stabilised n terms of inflation will continue depending on the South African rand coins.  

The ministry of finance were shocked at the turn around of the group of delegates whom they were making the deals with, when they refused after assuming to be making progress. of course the relationship between these two countries was never good since back in time and l do not think this had something to do with the relationship but maybe the U.S saw the impacts this will have on their own economy.

Most people put the blame on sanctions, for the poor economy of the country but thereare so many other countries that have sanctons iposed on them but they are still doingvery well. look at the Asian countries who do not eat from the same table with the European countoes but their economies are far much better that ours.

 it is true though that hyperinflation, forced Zimbabwe to abandon its own currency in 2009 in favour of a multi-currency regime anchored around the US dollar and later on, the South African rand.

Too much travelling had occured in the past three years to the U.S.  And despite the refusal of the American US Federal Reserve bank, had this deal gone through, the country was going to take out some money for the transportation of then coins, not by air but by ship.