Zimbabwe govt urged to compensate farmers
An independent report explains how it thinks Zimbabwe's economy could recover
Friday, 11, Dec 2009 12:01
By Anisa Kadri.
An independent report has revealed how it thinks Zimbabwe can recover from the simultaneous hyperinflation and recession that plague its economy.
The dossier, published by The Brooks World Poverty Institute at The University of Manchester, states that the African nation's economy could pick up if the inclusive government gives compensation to the predominantly white farmers whose land was taken from them.
According to the creators of the report, this move would improve bitter relations among the people of Zimbabwe and potentially encourage investment to get the economy back on track.
Lead researcher Dr Admos Chimhowu conceded that this theory was "a controversial idea", continuing: "Donors might be unwilling to pay compensation to the mainly white commercial farmers rather than support poor smallholder farmers.
"However, we know from the cases of Japan, Taiwan and South Korea that it was the investment of compensation payments to dispossessed landowners which helped these economies grow after the second world war.
"Clearly things are different in Zimbabwe, but under certain conditions such compensation could kick start investment in selected areas of the economy and perhaps help with economic recovery."
The report includes other suggestions such as increases in health budgets, reintroductions of state social protection programmes run by the state and improving the state bureaucracy to the level it was at in 1990.
Furthermore, it argues for an agriculture-led revival, which would see farmers gain $1.6 billion and receive fair access to water through reforms.
The report will be communicated by Dr Tendai Biti, Zimbabwe minister of finance at a public lecture at The University of Manchester later today.
Hyperinflation in Zimbabwe reached 500 million in 2008. Meanwhile, in March this year unemployment was at 80 per cent with 72 per cent of the population living off food handouts.