Zimdollar Death Shows King Has No Clothes
The death of the Zimbabwean dollar is proof that with all our education, there is something terribly rotten in Simbao (old name for Zimbabwe).
I want to apologize to Sister Fay Chung. Sister Chung argued that Zimbabwe’s colonial education was not good enough for today’s needs. I confess, seeing the most educated minds at the Treasury, and the way they do business, their modus operandi, one has to agree with the sister that their education must have taken away all common sense and replaced it with water in the head.
This, the Minister of Education, Dzingai Mutumbuka, 1980-1987 wanted to change.
The brilliant American scholar Kathleen Eisenstadt (1989) suggested that when collecting research evidence, one should look for those idiosyncratic events that seem to stand out at odds with previously known facts.
If I were to list these known facts, and how the Treasury Musketeers broke every rule in the book, there would be no end.
The death of the “stupid” Zimbabwe dollar (US slang) follows a pattern of already well-known facts that make one wonder why in the world President Emerson Mnangagwa would have been caught in the foreseeable storm.
Eisenstadt’s theory has been shaken and overthrown. The facts are well known, so they are not idiosyncratic. Professor Mthuli Ncube is by no means an ignorant fool, and he ran the Barbican Bank before fleeing the country because of the ruinous monetary policies of Dr Gideon Gono (2007). I am told that the other two Treasury musketeers, George Guvamatanga and Dr John Magundya, are “great people” and they too are by no means morons.
But they do very stupid things.
These “big guys” must have missed Newton’s third law of physics. For every action, there is a reaction of equality and opposition.
Their modus operandi does not take into account that their word is not the only one in the universe and that there are other actors who must be consulted.
Here is a very simple fact. Venezuela has the largest oil reserves in the world. When they came to power in 2018, they assumed that they could, by their own power, create a Zimbabwean dollar without the support of the British and the United States. The price that should have been paid was compensation for the white farmers. Money today is not entirely based on production alone, but on the general goodwill of the actors of the world. In plain English, it will help the economy get on good terms with the United States and Britain.
These are the facts of life, my dear, Dr. Watson.
Our great scholar, Professor Mthuli thinks he can bamboozle Europeans with fine speeches and scholarly presentations. No Siree, Big Brother. Compensation for white farmers is their priority.
I recently learned that in the Kadoma Declaration, 1998, a secret Zanu-PF resolution supported this point.
Without accommodation, there is no agreement.
They completely ignored the fact that there might be a reaction. The dollar fell to 45 to the US dollar after the veteran’s deal.
As we speak, there is another abracadabra scheme to make another payment to 160,000 “alleged” veterans. Again, Zanu-PF thinks they are the only players in the game.
The three Treasury musketeers had to miss their basic economics classes. The summary of Adam Smith’s book Wealth of Nations is that the trader knows better than the government what price he will accept for his product and even where he can get the best price.
Last week, the government ordered police and soldiers to seize bags of maize not intended for the Grain Marketing Board. There are so many examples of similar failures that one wonders why any sane man would even attempt to follow this foolish path.
Kwame Nkrumah from Ghana tried this with the Cocoa Board in Ghana (1961). Cocoa farmers transported their beans through the forests to Côte d’Ivoire.
Our own teacher Gift Mugamu puts it this way. “Don’t tell me the price of tomatoes if you don’t have a farm.”
Former US President Barack Obama had a plaque at the White House with these words written on it. ” Do not do stupid things.
Stupid regulatory texts
Despite their extensive knowledge, I have come to believe that the Treasury brothers provide quintessential examples of stupid practices.
Statutory Instrument 103A is an example of a regulation written by a madman. The IS says a dealership must immediately report the names of its customers to the Reserve Bank. Two days later, the Reserve Bank admitted there were errors in that statement. In any case, the SI was tautological. Banks are already reporting suspicious activity. If the man who wrote the SI had consulted bankers, rather than wanting to appear important, he would have been given this information.
In another example, a “stupid” official, presumably with a doctorate behind his name, woke up and decided to ban all lending operations by banks. It never occurred to him that the banks would fail. Newton’s third law assumes that since there is going to be a reaction, the right way to do things is to consult the banks first.
Their heads are full of water.
They tricked brother ED and embarrassed him when the reaction was too big for them to contain.
Similarly, another “stupid” official dreamed in his sleep that the kombi drivers were a nuisance. It never occurred to him that
20,000 kombi drivers would be unemployed. Now they are calling back the kombi drivers.
Finally, with all the engineers we have in Zimbabwe, road repairs are left to charlatans. Look at the picture.
These brothers have no clothes. They hide behind big words.
Professor Ken Mufuka is starting a lecture tour in East Africa and will be in Zimbabwe from July 1-30. Contact details: Zimbabwe: 77-694-167