Under-pressure ZANU PF Finance Minister
Speaking to legislators in
"It pitched our cost structure too high. It's like we devalued the US$, where in America a dollar can buy four Cokes, in our case it can only purchase two or one.
"So, in that sense it means that the cost structure is not sustainable, it basically kills aggregate demand which is very necessary for any economy to function."
Chinamasa said the high private sector salaries that were introduced when the new multicurrency regime came into force also betrayed a lack of appreciation of the real value of the US$.
"When you adopt currencies that are not yours you deprive yourself of one strong element of stimulating economic activities, through monetary policies for example.
"Right now the central bank is incapacitated in terms of what it can or can't do to increase or decrease money supply. But the fault is the minister's for not thinking it out clearly when they introduced the multi-currency regime," Mhlanga said.
Mhlanga said what the ruling party should have known was that adopting the US$ was never going to solve
"It is irresponsible for them to blame everyone else except themselves for the predicament that they find themselves in. The fact is there is an absence of an economic environment that is attractive to foreign investors.
Mhlanga said if
"In addition there are issues such as infrastructure and energy that the country needs to address and this is possible through investment, which at the moment can't be found locally.
"ZANU PF is capable of diagnosing and understanding these things but what is lacking is the willingness to accept responsibility and to do the right thing by the economy and Zimbabweans," Mhlanga added.
In the past ZANU PF has blamed targeted sanctions, the whites, and the opposition for the economic collapse. With whites chased out of the country, the opposition in disarray and the easing of the targeted sanction, the ruling party is running out of scapegoats for its failure to deliver.
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