Every currency performs three main functions. Firstly without money, we would have to exchange goods and services directly for other goods and services, that is, to engage in barter. Money is accepted by everyone and simplifies trade.
Secondly money enables us to compare the value of different goods and services. It is the standard used to express their prices.
It also makes it possible to compare costs, incomes and profits over time. It is thus the basis of accounting, a system which enables us to plan and take economic decisions.
Thirdly money is used to accumulate savings. Money is the “liquid” reserve par excellence, capable of being converted easily and quickly into any type of good or service.
Good money must have at least six characteristics, and these require the money to be (i) divisible, (ii) hard to counterfeit, (iii) durable, (iv) acceptable, (v) portable and (vi) stable in value.
Although the Zimbabwean dollar before it was suspended from the country’s monetary system managed to have the first three characteristics, it nevertheless fall short in attaining the last three characteristics.
Given that the last characteristics are the most important features required in any money system, the majority citizens were forced to reject it due to its rapid decline in its real value as well as the fact that it was increasingly becoming non-portable to use in transactions, with one having to carry trillions of Zimbabwean dollars to buy just a few groceries.
It was this situation that made the public to continually lose confidence not only in the Zimbabwean dollar but also in the country’s ability to sustain a stable and dependable currency.
As Zimbabwe tries to go back to the time when it had its own currency the government has to prove beyond reasonable doubt that it is not only ready for but has the ability to sustain a local currency.
The generality of the public a skeptical as to the objective and sustainability of having a local currency in the backdrop of corruption and unproductive economy lacking a viable local manufacturing sector.
CONCLUSION
Going forward there is need for the Mnangagwa regime to embark on radical reforms whose objective is not only to root out corruption but also to restore public confidence in government and the Banking sector. The reforms should not only focus on fiscus but cut across all sectors of the economy and governance.
The issue of the parallel market should be dealt with definitively. Money laundering in the streets and high offices should be rooted out. Price distortions and the issue of multiple prizing has to be addressed.
Corruption especially by senior government official, business people and organised syndicates and cartel should be dealt with. Salaries in all production sectors including civil service should be raised to regional levels.
Production especially in agriculture, agribusiness, mining and the manufacturing sectors should be promoted by sensitive government policies which not only bring about ease of doing business but allow these sectors to be competitive and attract meaningful investment. The issue of land reform should be looked at objectively with the view to make the land bankable and to promote commercialization of the sector.
Government should come up with a clear policy position regarding the issue of compensating former colonial farmers. In the mining sector the issue of value addition should be taken seriously and backed by clear policy positions.
In international relations we should come up with policies which foster meaningful international engagements meant to benefit Zimbabwe. We should also pay all the foreign debts and try to minimise borrowing.
On international trade Zimbabwe should try to create a favourable balance of trade with the main focus being on export of primary products while gradually moving towards value added products. We should reduce the importation of second hand goods especially vehicles.
With regards to our diaspora citizens the government should put in place policies that favour the bringing back of remittances by our people. Zimbabwe should also adopt a policy of exporting qualified labour especially to the first world countries targeting Europe and China.
On the issue of parastatals government should consider rebranding and remodeling and restructuring some of them and also retire staff in order to bring in a new work culture.
In the field of education there is need of an overhaul of the education system in order to make the education system responsive to global trends and industrial needs. The time when children need to have five levels is now past.
What we need is to produce technicians’ right from primary school. The civil service has also to be overhauled. There is no need to continue investing in the military. Instead we should have just a sizeable professional army.
Police service and other civil service functions should be left to the local authorities.
The age of retirement should be reduced to fifty years while national service should become mandatory upon completion of college education.
Pensioners should be given living wage so that it becomes attractive to retire. Public works programmes should be introduced and the issuing of free food handout and farm inputs discontinued.
Public construction should focus on productive infrastructure (Mining, Agriculture, Industry, Energy, Tourism etc) and the provisions of social services (health care, transport, housing and Education).
The government should come up with policies that protect workers and clarify labour relations.
The prison system should be modeled in such a way that inmates become productive and earn an income while in prison.
There should be strict supervision of the work of local authorizes so that they contribute to regional development.
Growth of rural service centres should be prioritized to reduce urban primacy. All major roads should be privatized to reduce government expenditure in that area.
There should be clear regulations governing the operation of political parties and civil society organisations.
There should be a minimum education requirement for one to be appointed to be a Councillor, a legislator or a senator.
Sydney Muyambi (LEAD Secretary General)