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whether waiting for elections to solve this global crisis of unemployment is the best option?
Here in Zimbabwe, we have an inclusive Government, which has failed, in three years to solve the crisis of unemployment. The major casualty of unemployment is the age group between 18 years and 30 years. The world average of unemployment in this age group is about 40 percent. It is greater in developing countries. Governments and economists have advanced the reasons for unemployment. In developed countries the crisis has been attributed to the loss of manufacturing where factories have relocated mainly to Asian countries where costs of production are low.
Why in the first place factories closed in developed countries has been blamed on trade unions who were demanding higher wages for workers which made the manufactured goods more expensive on the global markets. Many countries have been forced to cut wages and benefits to deal with the financial crisis for failing to pay back debts to creditors.
In Zimbabwe, we are being told that the major reasons for unemployment have been caused by sanctions that were imposed by Western countries to punish the country for embarking on the land resettlement programme. The other reasons have been due to the lack of liquidity in the financial markets.
We are told by financial authorities that the liquidity problems arose when imports were greater than what the country exported. The reasons given were that the manufacturing industry and other export related activities nose-dived from year 2000 to 2008.
What is being left out in the equation is the unprecedented printing of money which had no value and which could not be supported by any appreciable financial reserves causing high inflation. In other words, the economy just collapsed until it was rescued by the introduction of the multicurrency system.
The problem now is that the multicurrency system does not allow the Government to print extra money to deal with the liquidity crisis. All the money circulating in the economy has to be earned through exports and other financial inflows from investments.
Recently, top Government officials were in South Africa trying to persuade investors to come to Zimbabwe. But, the crisis of unemployment has also affected South Africa itself. There, the powerful trade unions are blaming their government for the crisis for allowing cheap manufactured goods to flood the country while locally manufactured goods cannot compete with imports especially from Asian countries. This has caused factories to close throwing over a million workers out of employment.
The same has caused factories to close in Zimbabwe. Supermarkets are full of imported food items, which were being manufactured in Zimbabwe, only a few years ago. Some cite the lack of capitalisation of farming operations, which should supply factories with locally produced inputs.
What is being questioned is whether elections can solve the unemployment crisis? If the inclusive Government has failed to deal with the crisis, which has contributed to many citizens leaving the country in search of employment in the region and abroad, can making unemployment an election issue be the answer to the problem?
A survey of young people at shopping centres and growth points has revealed that, many young people are faced with despair for the future. While some have resorted to selling air time at these centres, ideally they aspire to get jobs in factories or to use their hands in making products for the local markets.
Why is it difficult to face the truth that sanctions have been devastating in reducing investment and budgetary support without which no African country can sustain economic development? Who can come to invest in an economy which is under sanctions?
The European countries have found themselves in difficulties where the leeway of printing money has been taken away by the introduction of the single currency system. Every economic decision is now decided by the European Central Bank. The austerity measures that have been forced on governments have caused untold suffering by throwing thousands of workers out of employment.
What then is the solution to the unemployment crisis? Sanctions have to be removed. The multicurrency system has to be maintained. At least it has stabilised the economy but it will take sometime for the economy to respond to the building of business confidence. Elections should not be used as a panacea for solving the economic crisis. Elections are necessary to enhance the democratic process.
What maybe of concern is the prevalence of violence whenever elections are contemplated. It is necessary to renew the mandate of government. Solving economic problems should be the concern of the people as a whole no matter who wins the elections.
Unemployment does not know any political party. Business confidence does not know any political party. If all political parties have the national interest at heart, unemployment crisis can be tackled successfully for the benefit of the people and to enhance economic development.