The Land What About It?

Dealing with these challenges will demand changes in authorities’ policy, it should take changes in hearts and minds as well. The economies of our neighbors Botswana, Namibia, South Africa, Mozambique, and Zambia have been flourishing for years while that of Zimbabwe crashed. We are told our collapse is as a result of “illegal sanctions” which stopped us from borrowing money which could have fixed the economy. This isn’t true.

We could no longer borrow because we’d not repaid previous borrowings. Our bankers acquired cut us off long before any sanctions were imposed already. Why then are we in that mess when our neighbors are not? What really caused the nagging problems we face but did not influence the surrounding countries? Why has it dragged on for so long that we are now even unable to pay the civil service proper wages?

The answer is the “Fast Track Land Reform Program” (FTLRP).It offers ruined the country’s economy along with our wealth creating abilities.It has been made by it impossible to make any economic progress. Allow us to clarify how wealth is definitely created and just why it is we can no longer do so because of the FTLRP and are thus doomed to keep on falling.

  • Depreciation of property
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All wealth originates from the ground or the oceans. It may come in many forms; minerals, oil, and harvests of fish or crops, forests, wildlife and livestock. It might come from using what has come from the earth and adding value to it, for instance converting metals, plastics, and rubber into automobiles and aircraft.

Or it may result from using manufactured items like plane and vehicles to satisfy and service the needs of holidaymakers who want to move from place to place or even to use machines to add value to a metal or commodity. But eventually all wealth comes from the earth; the bottom line is wealth is created by entrepreneurs or businessman investing in the factors of production. These factors of production are land, l labor, and capital.

Why do we not then just can get on with it and have our business owners combine their skills to the factors of creation which are staring back at us? In this way surely we can go back to being as wealthy as or richer than we were before? The FTLRP has made this impossible, it does not matter which way you look at it.

The FTLRP through the devastation of property privileges has also damaged the factors of production and erased that necessary financial ingredient, confidence. Business owners, those that really matter, having seen that there is no security of tenure, no property rights in Zimbabwe have eliminated. What is more they have taken their capital with them. The administrative center which remained in the back of has been ruined by inflation.

Take twenty-five noughts off even Bill Gates’ fortune, and he too will be penniless like the rest of us. There is now, as Biti has justdiscovered no money, no liquid working capital remaining. Surely there must be lots around. Labor ,especially skilled labor is like money. It is very fluid and mobile.