diaspora

ECONOMIC RECOVERY EFFORTS: DIASPORA THE FORGOTTEN GROUP

The past decade did a great deal in chasing away professionals, entrepreueners, farmers to mention just a few. As the economic and political environment deteriorated these were forced to settle in lands as far away as UK, USA and South Africa among other countries. However as the economic went into tailspin from 2003 till 2009, it became evident that these expatriates were instrumental to some degree in sustaining the faltering economy. It had been widely predicted back then that the whole country would simply collapse by 2005 as hyperinflation took its toll on the economy and the worsening poverty levels meant the country was on a path towards a full blown conflict. That did not exactly happen because by 2005 the economy was still struggling and it continued struggling until 2009 and many reasons have been proffered for this. However two factors seemed to have standout among the various propositions made, namely the informal sector of the economy and the impact of diaspora remittances during that period. Many people who lost jobs during this period were absorbed by the informal sector whose activities included cross border trading among others. This enabled families to survive during this difficult period. However it is Diaspora remittances back to Zimbabwe during that period which made people suddenly aware of the importance of this forgotten group. Millions of dollars were sent to families back in Zimbabwe thus helping to stem mass starvation and just keep things going. Efforts were then made by the government to harness these remittances but these efforts largely failed because for a long time the government seemed to misunderstand this economically important group. We may all remember the central bank’s homelink program, remittance program made to lure the Diasporas to channel their remittances through government channels and of course this did not succeed. Nonetheless the Diaspora still did sent money back through what was commonly known as the black market and indeed today a lot of people do acknowledge the critical role the Diaspora played in ensuring families back home were fed and that the general economy did not collapse. However since the start of the coalition government this group seems to have been forgotten as efforts to resuscitate the economy now seem to ignore them. It’s not clear if the consultation process which gave birth to the new economic blueprint actually reached out to the Diaspora though the final document does talk of Diaspora re engagement. As mentioned past efforts to use remittances by these to cushion the government from foreign currency shortages failed primarily because the government insisted on an exchange rate which sensationally overvalued the Zimdollar. During that period despite threats the black market was the preferred way of sending money home as the Diaspora avoided the homelink channel which was controlled by the government. Of course since we now use foreign currency as our own, money is now being sent through normal channels. However the diaspora could potentially do more for the economy if the government really listens to their concerns. The economy which has not received significant financial aid is currently in the midst of a gripping liquidity crisis yet we have the Diaspora which could potentially be sitting on a huge cash pile. The Mid Term Plan talks of Diaspora re-engagement an effort which if done sincerely could potentially avail to the economy the much needed liquidity injection. At the centre of the diaspora’s concern or anger is their apparent continued disenfranchisement especially when it comes to the country’s plebiscites. To them participation in economic revival efforts has to be reciprocated with participation or representation in national issues or events and currently that does not appear to be the case as reforms carried so far does not address this. Secondly the Diaspora just like a foreign investor expect or prefer a business environment in which the rights of property holders are respected, a stable socio-political environment and a degree of certainty in government actions.  If anyone in the Diaspora decides to invest, his investment should be accorded its due protection regardless of the investor’s background, colour or creed. Just like the constitution which is non-discriminatory, likewise policies or laws promulgated should reflect this, giving the same treatment to investments made by anyone who is a citizen of this country. If the government comes through on these then it is guaranteed that the Diaspora will certainly come forward to assist in reviving the economy.