[DEBATE] : (Fwd) Zim econ crisis - no imperial lifeline apparent

[Patrick Bond]

Business Day (SA), 28 April

No aid for Zimbabwe as leaders struggle to overcome political impasse

Dumisani Muleya

Harare – Zimbabwe’s leaders last night failed for the fourth time in a 
fortnight to resolve a series of contentious issues threatening to 
paralyse the country’s shaky coalition government. The crisis talks 
remained deadlocked after long hours of intense discussions, signalling 
a serious political problem besetting the new government. A fierce power 
struggle is raging behind the scenes as President Robert Mugabe and 
Prime Minister Morgan Tsvangirai intensify their battle for political 
control. Informed sources close to the talks said last night the meeting 
ended in a stalemate. "The leaders agreed to meet again today to try and 
break the stalemate," a senior government official said. "It’s proving 
to be very difficult because neither of the leaders want to make any 
concessions." Mugabe, Tsvangirai and Deputy Prime Minister Arthur 
Mutambara met yesterday to sort out issues dividing the government. 
Their meeting followed similar gatherings on Monday and Thursday last 
week and another one on April 16.

So far the four meetings have failed to break the impasse, leaving the 
unity government in a state of crisis. The issues at stake include 
appointment of senior government officials including permanent 
secretaries, the accounting officers of ministries, provincial governors 
and diplomats. There is also the matter of the continued detention of 
opposition Movement for Democratic Change (MDC) officials and activists 
over allegations of trying to overthrow Mugabe, arraignment of MDC 
treasurer and deputy minister Roy Bennett and farm invasions. Mugabe and 
the two MDC faction leaders, Tsvangirai and Mutambara, are also fighting 
over the president’s unilateral seizure of the department of 
communications from Information Communication Technology Minister Nelson 
Chamisa, a member of the MDC. Tsvangirai said last week these issues had 
to be resolved to allow the government deal with the country’s economic 
and social problems. The deadlock came as Finance Minister Tendai Biti 
and his delegation to the International Monetary Fund (IMF) and World 
Bank meetings returned home empty-handed after failing to get a rescue 
package. Zimbabwe needs $10bn to fund its economic recovery programme. 
The IMF said that it was not in a position to bail out Zimbabwe because 
of arrears and financial restrictions.

***

Daily Telegraph (UK), 28 April

Zimbabwe assets face seizure after tribunal rules for farmers

Harare - Air Zimbabwe's passenger jets could be seized at Gatwick 
airport after an international tribunal ruled that the country's assets 
could be confiscated and sold in order to compensate farmers whose land 
has been seized. The decision by the Washington-based International 
Centre for the Settlement of Investment Disputes (ICSID) came after a 
six-year legal battle between a group of Dutch farmers and President 
Robert Mugabe's government. It finally ruled last week that Mr Mugabe's 
government had broken a bilateral investment treaty with the Netherlands 
and awarded the group more than £14 million in compensation. The ICSID 
is part of the World Bank and the judgment can be enforced by seizing 
Zimbabwean state assets - such as Air Zimbabwe's aircraft - in any of 
its more than 100 member countries, which include both Britain and 
America. Embassy buildings, though, are excluded from seizure under the 
Vienna conventions. At a hearing in Paris, which was closed to both the 
public and media, Zimbabwean officials defended the eviction of more 
than 4,000 farmers saying the best agricultural land was taken by white 
"settlers", mostly British, during the colonial era. One of the farmers, 
Ben Funnekotter, 49, born of Dutch parents in Zimbabwe and who now lives 
in Australia, was one of the first forced off by Mr Mugabe's thugs in 
2000. "We need to see if the award will be paid," he said. "If it is 
not, then I will start proceedings to impound any assets belonging to 
the Zimbabwe government." Matthew Coleman, a British lawyer who 
represented the farmers in Paris, said: "We hope this encourages others 
to come forward and bring claims under the bilateral investment treaties."

***

Reuters, 26 April

Zimbabwe needs to do more for financial aid-bank

By Lucia Mutikani

Washington - The African Development Bank said on Sunday Zimbabwe needs 
to do more work before the country's full scale reengagement with the 
global community, a sign that foreign funding to rebuild its shattered 
economy will be tough to secure. ADB President Donald Kaberuka told 
reporters the bank was working together with the International Monetary 
Fund and the World Bank to ensure Zimbabwe normalized its relations with 
the international community. "There are many things to be done for full 
scale reengagement," said Kaberuka, side stepping the issue of whether 
the ADB would step in with some form of funding. Zimbabwe's new unity 
government has asked for international funding to rehabilitate an 
economy, once described by the World Bank as the fastest shrinking 
outside a war zone. Over 90 percent of the country's working population 
is unemployed and the government is broke. Despite the formation of the 
new government early this year by political rivals Robert Mugabe and 
Morgan Tsvangirai, donors remain reluctant to lend money. More worrying, 
farm invasions, at the root of the collapse of the once vibrant economy, 
have continued.

Policy differences with President Mugabe's government, including the 
often violent seizure of white-owned farms for the resettlement of 
landless blacks, have left it without international funding. The land 
seizures started in 2000. The IMF, which suspended Zimbabwe's voting 
rights in 2003, said on Friday the country had to clear its arrears with 
the fund, now amounting to $130 million, before it could get any money. 
The World Bank, which is owed over $600 million, has maintained a 
similar stance. There had been speculation that either the ADB or the 
Southern African Development Community could arrange a bridge loan to 
pay off Zimbabwe's arrears with the IMF. However, Kaberuka's remarks 
appeared to pour cold water on suggestions that a rescue package was in 
the works. "I don't think the strategy of making Zimbabwe dependent on 
foreign aid is the right one. What we need to do with Zimbabwe is to 
work with them to establish business confidence, rehabilitate their 
infrastructure and ensure that skilled Zimbabweans come back to their 
country," he said. "I very much welcome the political arrangement in 
Zimbabwe. It may be imperfect but it represents a chance for that 
country's recovery and return to its previous prosperous status." The US 
has indicated it is not yet ready to give money to Zimbabwe.