Zimbabwe has in the last five years all but given up on FDI. Instead, in an unprecedented manner taken more offshore debt than in the last forty years.
China must pay Zim cash for its exports & not offset with onerous debt under the guise of infrastructure & donations.
China must pay Zim cash for its exports & not offset with onerous debt under the guise of infrastructure & donations.
GOZ is awfully inadequate in understanding geopolitics & economics. For example, China grew on savings & FDI. Not debt.
FDI is important for;
(i) Technology transfer
(ii) It’s equity at risk& is more patient.
(iii) Loss is not a burden on greater society
(iv)Global supply chains
FDI is important for;
(i) Technology transfer
(ii) It’s equity at risk& is more patient.
(iii) Loss is not a burden on greater society
(iv)Global supply chains
All these are ideological questions. Socialism quickly runs out of money. Leaves debt & malinvestments. Losses & Debt become a collective responsibility. A child born today is saddled or as the saying goes indentured. All they’ll produce will go to paying off their father’s debt!
So if it’s not debt from the East it’s Aid from the West. Aid is harmful.
How does the West expect GOZ to implement reforms when it has outsourced citizen welfare to the west? Aid results in inappropriate resource allocations.There is a direct link between Aid & fixed Fx rate
How does the West expect GOZ to implement reforms when it has outsourced citizen welfare to the west? Aid results in inappropriate resource allocations.There is a direct link between Aid & fixed Fx rate
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