Source: Tendai Biti, People’s Democratic Party
As 2016 draws to an end, the Zimbabwean economy continues to be mired and arrested by a crippling crisis of confidence that is anchored on the structural issues of low productivity, deflation, stagnation and a corrosive macro-economic crisis.
That macro-economic crisis is a trilemma of a fiscal crisis, liquidity crisis and external sector collapse.
The fact of the matter is that Zimbabwe is in the fourth year of a structural economic recession which the authorities do not understand and are incapable of offering sustainable solutions to stem the same.
Zimbabwe thus finds itself on the throes of another sustained long term down-turn.
In this document, we contend that urgent solutions are required to reverse the slide towards an economic depression.
We offer anti-cyclical solutions demanded by the urgency of the situation.
At the end of it all, we are alive to the fact that the crisis of confidence arresting our economy is a political crisis.
Ultimately therefore, the real solution to Zimbabwe’s economic meltdown is a political solution.