Zimbabwe’s Silent Neo-Liberal Revolution: From Radical Politics to Thawed Politics

From the late 1990s, Zimbabwe’s economic policies became dominated by radical nationalist politics, that purported to smash the residues of colonial property relations that dominated its body politic. Zimbabwe implemented a very radical Fast Track Land Reform and nationalist economic indigenisation programme that excited many in the Global South and unsettled the citadels of capital in Washington, Paris, Berlin and London. This happened, at a time when the world was becoming flat and at the ascendancy of neo-liberalism.  The question, that has always begged: how sustainable is the path? It seems almost in the 17^th year after Zimbabwe purportedly asserted its sovereignty through the Fast Track Land Reform, she has been disciplined by Capital. The U-turn in economic policy signal a silent neo-liberal revolution that has been taking place either as a result of the whip from Washington or a default process of de-statisation due to limited fiscal space. The net result is default privatisation and commodification of previous perceived public goods and services despite the radical rhetoric of 'indigenise, empower, develop and create employment'.

President Mugabe’s message to Blair, to keep his England while he keeps his Zimbabwe became a hit with many people in the Global South and Developing world who have had to live with the legacies of colonialism and un-transformed societies. President Mugabe became the Last Man standing and for once many believed that the unfinished business of independence will get finality. Some Africanists claimed that Zimbabwe had become a radicalised state or taken back its land and those that opposed the events in Zimbabwe were labelled a polluted and liberal urban based class worried about the privileges of political rights. When Zimbabwe enacted the Indigenisation and Economic Empowerment Act in 2007 and Minister Kasukuwere sought its religious implementation after the establishment of the Government of National Unity (GNU) in 2009, it further cemented the arguments of the Africanists.

The GNU became defined by strong ideological contestations where the Zimbabwe African National Union Patriotic Front (ZANU PF) presented a strong nationalistic policy orientation and the Movement for Democratic Change(s) (MDCs) argued for liberal economics. ZANU PF, tactfully or by default conceded the economic policy making ministries to the MDCs and retained the security related and resources distributing ministries. The Government of National Unity came with the Short-Term Emergency Recovery Programme (STERP) and later a Mid-Term Plan (MTP) economic blueprint managed by the Ministries of Finance and Economic Planning respectively. This represented a thawing of the radical politics that had begun in the late 1990s and marked the beginning of a ‘Silent Neo-Liberal Revolution’ as the ‘Ship of State Sails On’. The government’s policy somersault was further rooted through the policy of dollarisation and re-engagement of the West. To deceive its supporters and mask its policy U-turn ZANU PF, used the Ministries of Land and Indigenisation to present a radical nationalist position, but trapped by the politics of the GNU. The MDC became the Evangelist of Neo-liberal policies in the GNU, a position that they heavily paid for in the GNU. ZANU PF had perfected the art of ‘Talk Left and Walk Right’.

The defeat of the MDCs in the 31^st of July 2013 elections (Warts and all), led to the domination of the state by ZANU PF and naturally, it was expected that more radical economic policies would follow. In addition, ZANU PF’s 2013 elections campaign message, “Taking Back the Economy: Indigenise, Empower, Develop and Create Employment”, presupposed the deepening of radical nationalist politics. However, the need for capital to inject into the economy to continue and maintain the economic stability experienced during the GNU called for pragmatic politics. The defeat of the MDCs had taken away the bogeyman for ZANU PF, yet at the same time to openly advocate for market economics became a bitter pill to swallow. This culminated in policy clashes between the ‘Gamatox’ faction that was perceived to push for business-friendly policies whilst the ‘Weevils’ faction pushed for hard-line and nationalistic economic policies. The expulsion of the ‘Gamatox’ faction didn’t lead to a congruent ideological policy position as the ‘Weevils’ popped into Generation 40 (G40) and Team Lacoste. The fight between Indigenisation Minister Patrick Zhuwao and Chinamasa over the implementation of the Indigenisation policy signified the continuing ideological battles in ZANU PF. Interestingly, Chinamasa’s pro-business position and proposed Lima Debt restructuring got the upper-hand as government desperately sought for new lines of credit to inject capital in the ailing economy.

President Mugabe’s 10-point plan of 2015 on the ease of doing business marked a brief end to ideological ambiguity. This was followed by Supreme Court ruling affording employers common law rights to terminate employment on notice without compensation, thus liberalising labour laws. In addition, the government introduced a 5% excise duty on airtime in 2014 and followed this up with 5% Health Levy in the 2017 Budget Statement as the anticipated international lines of credit and financial support increasingly become illusive. The irony of these policy instruments has been dwindling revenue base as voice call generated revenue declined due to consumers resort to data and social media usage that provided cheaper alternative communication. For instance, Econet’s profits after tax declined by 42% in 2016 as voice call revenues fell against the backdrop of an increase of Broadband revenue’s contribution to its profits.  To address the low revenue base for the government and profiteering margins for the companies, the Postal and Telecommunications Regulatory Authority (POTRAZ) gave a directive to effect floor prices for voice and data. This policy directive gave rise to cost of data by exorbitant margins, causing an outcry that has led to a policy reversal. Yet, the true story behind all this predatory policy practices is the collusion between the state and telecom companies. The state had interest in raising revenue to create more fiscal space given the seemingly endless wait for new lines of credit and cash injection, while telecoms companies had seen an opportunity for profiteering as the logics of neo-liberalism deepens its roots in Zimbabwe. In addition, the government has relaxed its ‘No to Whites on Fast Track Land’ policy and accommodating ex-commercial farmers back onto the land. Anecdotal evidence speaks to black farmers in partnership with Whites getting more inputs under the Command Agriculture scheme. Also, there has been an increasing role of Chinese farmers on the former commercial farms a government shifts from the ‘only blacks on farms’ position. The creation of special economic zones where labour laws have been relaxed signify Zimbabwe’s Damascus moment and return to neo-liberal economics.

These policy positions need to be read in tandem with various policy instruments and positions being adopted by government ever since the establishment of the GNU. Silently and slowly we are sailing towards neo-liberalism as the state keeps rolling back and previously public goods are becoming private. Our health services, water services, passports, current debates on urban tolling, education among the many public goods have become com-modified by default as only those who can pay more can access the services. In all this neo-liberal fiasco, the citizen has retreated to the informal and lost voice giving impunity to the state. Slowly, Zimbabwe has become a private limited company that extracts income from citizens but in return is increasingly privatising almost all public services either deliberately through policy or by default through the government's limited fiscal space.