There is a small glimmer of hope for an end to Zimbabwe's rapid slide into economic ruin, now that President Robert Mugabe has painfully completed Lesson One (How to Create Massive Shortages by Mandating Large Price Cuts During High Inflation).
Mugabe has apparently been chastened enough to meet with Zimbabwean business leaders to enlist their help in saving the economy. These are some of the same business leaders whom Mugabe has recently been treating as criminals -- literally -- by throwing them in jail for violating Mugabe's impossible price controls.
REPRESENTATIVES of Zimbabwe's embattled business sector this week made a major breakthrough when they met President Robert Mugabe for the first time in years and got him to commit to a set of new economic reforms in a development that might also see his Cabinet taskforce on prices ease its blitz.
Senior government officials disclosed yesterday that President Mugabe, who has of late hardened his stance vis-à-vis business and Vice-President Joice Mujuru on Monday held a meeting with 12 captains of industry, who included chairpersons of key sub-sectors such as manufacturing, mining, milling, and banking.
The meeting, details of which are being kept a closely guarded secret, was held at State House, President Mugabe's residence, and lasted for four hours.
The business leaders, whose constituencies have suffered losses running into trillions of dollars since June 25 when the government ordered a 50 percent price slash, presented a document to the President detailing economic proposals they believe are required to ease tensions sparked by the price war and allow the sector to continue operating viably.
No details have been made available on the proposals, but a "15-point plan" to rescue the economy, a source involved in the negotiations said, has been agreed between the President and the business leaders.
President Mugabe, whose government has ruled the country since independence in 1980, has been on the warpath against the business sector, which he accuses of supporting a regime change agenda allegedly being pursued by the main opposition party and its allies.
Business leaders have denied the charge.
Since the price crackdown was launched on June 25, over 4 000 traders, including company directors, general managers and sales managers, have been arrested.
At the same time, serious shortages of products have resulted in empty shelves in supermarkets and other outlets because most companies cannot replenish their stocks -- spelling potential trouble for the ruling ZANU PF, which will however, face a divided opposition in next year's harmonised polls.
"They (business) presented a confidential letter to the President, and it will activate a lot of things. The document outlines the short-term, medium-term and long-term solutions to rescue the economy," said the source.
At the meeting, it is understood that President Mugabe urged his government to consider proposals crafted by business.
"The President was really receptive to the proposals made by business. The way forward agreed was that government should negotiate with business and work on the proposals," the sources said.
As the story reports, Robert Mugabe was "really receptive to the proposals." In plain English, that means that he has realized that the economy will collapse if he keeps it up. Therefore, it has been agreed that "the government should negotiate with business and work on the proposals."
A promsing development, but not a complete cure.
After all, "negotiations" with the government is not exactly a treat for Zimbabwean business owners to look forward to. Having been practically driven to the verge of bankruptcy, they now get to "negotiate" with the government to try to salvage what's left of their businesses. Even better, this process will loom indefinitely. If they ever start showing a healthy profit again, Mugabe will no doubt want a piece of that action.
All in all, it's still not a good time to be a business owner in Zimbabwe. And what that means for the people of Zimbabwe is continued needless suffering.
Free markets work if you let them work. They bring goods and services efficiently and reliably to those who need and want them. But tinker with free markets too much -- or take a hammer to them -- and you begin to have bizarre and unwelcome economic results and needless suffering.
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