Tuesday, 30 June 2020

Zanu Pf’s Shadow Boxing with Private Capital.


By Takura Zhangazha*

Presidential spokesperson for the Zimbabwean government, George Charamba this week made what would be relatively startling remarks.  Quoted in a story carried by the Herald newspaper titled. ‘Plot to Destabilise Economy Exposed’, Charamba is, inter alia, reported to have said,

“ We have realised that there is a clear nexus between runaway market activities and runaway opposition politics, that more and more, the security threat to this country, the destabilisation to this country is finding expressing through the market, so there is heightened smuggling of gold, there is heightened transactions, there is release of precious foreign currency into the black market, all to create a generalised instability which have the effect of creating disenchantment on the part of the Government..”

While it read like a familiar script from state officials against the mainstream political opposition in Zimbabwe, it has a different tone of tongue lashing.  Especially where he goes further to reportedly state,  “The politics are being shaped from the market…you will realise that we are in a phase where destabilisation has assumed a market form. The calculation was a health sector led generalised public strike, we are aware of such plots.”

I have quoted his statements at length because they reflect either a sense of panic at the top of the government (presidency) or a new found intention at redefining the relationship between private capital and the ruling Zanu Pf party via the state. 

In both likely circumstances, Charamba is not speaking for himself.  Even if his words may also betray his personal opinions on the matter to a keen reader. 

It would however be easier, if not popular(list), to view his comments as reflective of a sense of panic in the ruling establishment.  All happening in a national political economy in which the political elite and private capital/ big businesses are panicking over control of mobile money, foreign currency exchange rates and the suspension of the symbol of global financial capital, the Zimbabwe Stock Exchange (ZSE). 

It is a narrative that fits into a neo-liberal framework of anticipating that where a government acts arbitrarily against what would be private capital (in this immediate case, components of Masiyiwa’s empire: Econet and Cassava), a national economy collapses.  

So the ‘market’ that Charamba refers to here is probably comprised of three key players. The state (and its regulators), domestic fixed and financial private capital (local big business) and thirdly, the latter’s global financialised off-shoot as represented by the ZSE. Including what would be considered its hegemonic outfits in the form of political parties, consumers and other forms of Gramscian civil society.   All being together in an axis of and for profit. 

In all of this there are those who would hope that the ‘economy screams’ in the hope that Zanu PF loses its hold on political power in the country. Hence the accusations of plots to destabilize the country.  While on the other hand those sympathetic with Mnangagwa hope he can keep not only power but his own party and its patronage system somehow intact. 

Hence anyone sensing a panicking within Mnangagwa’s government cannot be considered off the mark.  Even if they may sound conspiratorial about coups, potential coups and foreign interventions in Zimbabwe’s domestic political affairs. 

Where one takes the view that Charamba’s statements are indicative of a potential changing of the rules of the relationship between the state and private capital (market), it is probably a more ideological view of matters. 

In this, it would be clear that what is not going to change is the open for business free market policy of central government. At least not in ideological intention.  Instead what appears to be an issue is the assumed dishonesty by private capital toward the olive branch that Mnangagwa had been offering since assuming and retaining power thus far.  Coming from Mugabe’s purportedly radical indigenisation programme, his successor thought he had private capital in his palm. It turns out big business would want to have its unfettered financialised and extractive profit more than seek to help him retain power. 

Hence, if one reads between the lines of Charamba’s reported comments, there would be both a warning and intention of a new approach to government’s neo-liberal project. It would be a change that most likely would be characterized by a reconfiguration of who the state does business with or allows to extract more profit from state wealth.  And this would, academically at least, take the form of state capitalism i.e a neoliberalism that follows the free market, but with the state/government parceling out profit motivated opportunities of the same. 

So there is probably an attempt in central government to redraw the rules of doing business in Zimbabwe.  But because they are courting global private capital, it is least likely that this change of the relationship between the state and business will be more significant beyond regulatory warnings and threats.  Fundamentally, established domestic capital and global financialised capital are looking at this as a storm in a tea cup.  All the while angling for better concessions from the state to continue to open up national wealth for their profit motivated pillaging of the same.  Almost as though the state is inviting them to the dinner table and saying, ‘let’s play nice, we can all eat together’.  And in this, as long as Zanu Pf insists on neo-liberal economics as a panacea to Zimbabwe's economic challenges, it is least likely to win against private capital. Or those that it thinks are conspiring with the latter. 
*Takura Zhangazha writes here in his personal capacity (takura-zhangazha.blogspot.com)

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