WHILE- Reserve Bank governor Dr Gideon Gono’s policies may be applauded by some, and religiously so by the Herald, I think there is something amiss about his policies and the way he runs the central bank.
n anyone point out one policy that has borne sustainable economic fruits at a national level since he stepped into office?
I am not talking about the many Zanu PF kleptomaniacs who have since made millions (revalued) by spinning the generous agricultural loans he dished out through non-agricultural and illicit activities.
I believe policies should stand the test of time if proper thinking and planning is done and consultations made.
Thanks to Gono’s wayward thinking, we are now subjected to disruptive policy changes in his attempt to please President Mugabe while economics and market forces are ignored. The result has been an economic circus.
The world-wide practice of having independent reserve banks which focus on monetary issues was not crafted by imbeciles as Gono and Mugabe would want us to believe.
It’s a tried and tested method that brings sanity to the world’s economies.
One “success” I can attribute to Gono, which he performed with ruthless efficiency, was the elimination of some of the best financial and economic brains in the country through his trumped-up externalisation charges and other Zanu PF mafia-type antics.
Project Sunrise was like an over-played record which drained resources only to bring the convenience of carrying fewer dollars.
The reason for over-playing it was to divert attention from dismal failure on the inflation front.
If one were to do a simple cost-benefit analysis of the RBZ function under Gono, the result will show that the RBZ has become a white elephant.
It is well-known that RBZ senior officials are among the highest paid on the land. How is that for a non-productive parastatal whose record of missing its own set targets of inflation reduction, money supply, etc is startling?
Even more sickening is the governor’s mantra of “failure is not an option” when all around him there are signs of failure: industrial production is at its lowest, agricultural output is low, poverty and the number one enemy — inflation — are playing havoc.
What a failed economy in a failed state!
Another abrupt policy shift dubbed the “Fine tuning of monetary policy” is again misdirected as the productive sector will still bleed while inflation runs amok.
Trying to intervene in everything including the functioning of the stock exchange under the guise of exposing money launderers or fictitious terrorists is madness. People need investments with returns that make sense in this hyperinflationary economy.
Simple free market practice is too much for this “guvnor” hey!
History will surely judge him for having presided over an economy with the highest inflation level on the planet, and his tenure will provide a good case study of the most inconsistent and myopic monetary policies ever.
Failure is not an option but a certainty.
Don Sahayi (Snr),