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MDC demands pro-poor fiscal policies
Movement for Democratic Change
July 13, 2010

Tomorrow's 2010 Mid-Term Fiscal Policy to be presented by Finance Minister Hon. Tendai Biti must be people-orientated, pro-poor, pro-growth and should deal with inflationary pressures. We strongly believe that that the minister will announce measures that show pragmatism from economic stabilisation to economic growth.

The MDC hopes that the fiscal policy statement will be pro-poor while at the same time tackling the issue of declining business production in the country and the stabilisation of prices of basic commodities. The new measures must enable the majority of Zimbabweans to afford basics services such as power, food, health and education. The MDC hopes the minister will announce measures that will protect the majority of the country's workers most of whom have no decent pay while at the same time reviewing the salaries of all civil servants who are struggling to make ends meet.

Our expectation goes beyond releasing further cash disbursements to ministries and parastatals. The government should deal with distortions of prices and wages on the market. We anticipate further economic relief to the ordinary person through austere economic policies that reduce resurgent inflationary pressures, wage/prices parity, creation of new jobs, enhancement of production levels, investment attraction and infrastructure development.

Minister Biti should look on how best to assist small-scale farmers so that they are able to return to their fields after facing another disastrous farming season. This will see ordinary Zimbabweans in the villages and on the farms receiving government assistance, in a non-partisan manner so that Zimbabwe reclaims its position as the bread-basket of the SADC region.

The MDC expects the Finance minister to call for transparency in the mining and sale of diamonds at the Chiadzwa diamond fields in Marange. We note with concern the high level of secrecy and the human rights abuses that shroud the mining deals in Chiadzwa as corrupt individuals loot and plunder national resources. We believe that transparency on the diamonds in Marange will result in increased government revenue which must enable the inclusive government to deal with civil servants' salaries and other pressing government commitments. We hope the Minister will come clean on the independent diamond verification and valuation and to state how much the State expects to gain in monetary terms so as to bring back people's confidence on the diamonds sales.

As a party, the MDC also believes that investment growth in the country can only be guaranteed if all political parties and leaders adhere to the letter and spirit of the Global Political Agreement (GPA) signed in 2008. There can be no meaningful investment nor foreign direct investment in an economy where leaders do not respect agreements which they signed with neither force nor coercion. Our financial predicament as a country, with no meaningful revenue and a famine in investment, is greatly linked to our political crisis.

Zanu PF has simply refused to allow the nation to build on the hope spawned by the formation of the inclusive government. They have refused to move away from the politics of violence, intimidation, seizure of private property and barbaric investment laws such as the anti-investment regulations which they tried to push through. Empowerment and indigenisation are good principles, but should not be ill-begotten and ill-timed.

With the limited political latitude that he has, the MDC hopes that the Finance Minister will announce measures that will give hope to the country's workers, civil servants, business and the majority of the people in the villages who demand and deserve real change.

Email mdcnewsbrief@gmail.com, mdcpress@mweb.co.zw

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