Lack of rule of law causes Economic decline

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By MUPONDA GILBERT

Published: November 21, 2009

Harare — THERE is a causal link between Zimbabwe’s economic meltdown and the breakdown of the rule of law. The break down on the rule of law and political instability have discouraged investors to expand their ventures. In addition the lack of rule of law and political instability has resulted in capital flight and brain drain in Zimbabwe. This

ZANU-PF maintains that the real cause of the economic meltdown is the sanctions regime, under which the country has been left with no choice, but to resort to unorthodox economic and political methods.

It is my contention that a link clearly exists between economic performance and the respect of the rule of law. Zimbabwe’s economic decline coincided with the break down in rule of law, political violence and general political instability

The imposition of the will of the ruling party ZANU-PF on the country has taken many forms including the passage of laws that promote and entrench partisanship and the use of state power to interfere with the bill of rights enshrined in the constitution of the country.

This has led to widespread violations of private property rights, which is the cornerstone of any market-based economy.

Throughout human history, there has never been a lawless society that has economically succeeded.

It is unlikely Zimbabwe will be the first to succeed in an environment characterized by abuse of property and human rights. Lawlessness breeds poverty and an unstable economic environment.

The separation of powers doctrine — a fundamental requirement in any constitutional democracy — is no longer applied in contemporary Zimbabwe.

The selective use of the law to punish and reward targeted persons undermines the rule of law, which reduces investment in the economy.

The shocking breakdown of the rule of law has had its own adverse effects on economic performance.

This breakdown was particularly apparent in the destruction of the agricultural sector, which led to widespread disruptions on farms.

While land reform was absolutely necessary, its implementation, accompanied by law breaking and court orders exacerbated the economic decline.

Confidence building is critical to attract investment and restore economic growth. There is need for new investment to increase production and tame Zimbabwe’s record inflation.

Law and order is a basic requirement of any functioning modern society.

Unfortunately, the Ministry of Home Affairs, which has the responsibility of maintaining law and order has done such a bad job that ZANU-PF cannot and should not be entrusted to control this critical portfolio.

A new dimension is imperative if Zimbabwe is going to regain its lost glory due to the reputation and the failure of this ministry  to uphold the rule of law.

The Ministry of Home Affairs has to be under untainted hands if the economy is to attract investors and increase production. The observance of rule of law and political stability are paramount for economic development and prosperity. Many countries in Africa ,in particular Zimbabwe have suffered economic decline due to lack of rule of law in addition to political instability which scares investors and results in brain drain as trained professionals leaving for more stable countries

From around year 2000, economic slide was accompanied by the break down of the rule of law starting with the invasion of productive farms, most of which had not even been gazetted for land resettlement.

During that same period, company invasions also increased leading to the resignation of the then Minister of Industry and Commerce Nko-sana Moyo.

It was clear then that without rule of law, there would never be any economic prosperity.

It is also clear that the ministry needs fresh ideas, focus and redirection. Concerted efforts are required to alert officials in the ministry, of the critical role it will play in Zimbabwe’s economic recovery by creating a conducive business environment through the fair application of the law and maintenance of order.

Foreign direct investment will not increase if there is no rule of law.

Foreign aid, which has been critical in various sectors is unlikely to come if there is no cultural reform and a serious attempt to rebuild confidence in the law enforcement agencies, which are under the Ministry of Home Affairs.

Brain drain has resulted in massive loss of skill and experience.

It is unlikely this will be reversed if the conditions that have been allowed to make Zimbabwe very hostile to skilled and experienced employees are not addressed.

Capital flight will continue as long as there is lawlessness and selective application of the law.

This means the Ministry of Home Affairs needs a culture change and has to be under a different party to manage that change and improve the perception that the law will be applied uniformly.

During the stage-managed anti-corruption campaign of 2003-4, the Ministry of Home Affairs through the Zimbabwe Republic Police (an institution whose credibility is in tatters) facilitated and enabled a massive wealth transfer with several business people either arrested, threatened with arrest or hounded out of the country.

Gilbert Muponda is a Zimbabwean currently based in Toronto ,Canada.He is Founder and CEO of GMRI Capital . www.gmricapital.com