The impact of mining has been devastating to host communities. When community members present their challenges to mining agencies there is little or no sign of responsiveness. The problem starts with the contracting process, mines investors believe they have a binding arrangement with governments more than host communities and governments apparently have cemented this position and view. The host community is seen as a third party and peripheral to the contracting process where negotiations are made. Perpetual conflict between communities and mining companies have remained due to growing inequality where on one hand; mining corporations have huge sums of money, lawyers, experts, media, government support; on the other hand communities have growing unemployment, growing poverty, multi-faceted environmental and social dangers, anger, frustration and limited access to social services. This kind of inequality is the breeding ground for ‘community-miner’ conflict.

The just ended 10^th Alternative Mining Indaba in Capetown confirmed that mining communities face similar challenges across the African continent – “they are almost predictable wherever you go.”

Commonly, struggles in mining communities emanate from:

• Heavily skewed power relations between mining companies and affected communities.
• Communities with extreme levels of poverty, inequality and marginalization.
• A long history of communities being negatively impacted by mining operations – water, air, noise and soil pollution.
• Weak, slow and inactive government that lacks capacity to effectively deal with challenges bedevilling mining communities.
• An apparent collaboration between mining companies, politicians and traditional leaders side lining the masses.

A multi-pronged approach, with facilitated dialogue at its core, driven by social and economic justice vision which includes the restoration of human dignity where communities are treated as equals on the negotiating table is long overdue. Sustainable developmental solutions that empower communities with outcomes which address poverty and inequality in all its dimensions is required.

As part of the Global Week of Action Against Inequality commemorations, the Zimbabwe Coalition on Debt and Development (ZIMCODD), held a community meeting in Epworth on 24 January 2019 to raise awareness on inequality.

Epworth residents from wards 4, 6 and 7 raised various inequality concerns affecting their localities. Inequality manifests itself and is perpetuated by extortion and corruption particularly in land and housing allocations. Desperate citizens seeking residential stands and houses often fall victims to political heavy weights who randomly “allocate” unofficial residential stands at exorbitant fees. Double allocation of stands is also a common occurrence. This kind of exploitation of the poor has sustained inequality and ensuring that the poor gets poorer while the rich gets richer.

Epworth residents bemoaned poor quality education both in public and private schools with allegations that teachers treat their teaching duty as part-time and prioritise their own businesses during working hours. It was reported that at one Kubatana Primary School (in Overspill), teachers log-in and then leave the school and come back to log-out. Most pupils are left alone playing throughout the day and go back home without learning. Parents bemoaned the future of their children without proper education but do not have an option to take their children to better schools because they cannot afford higher tuition fees demanded by nearby schools in Hatfield, Craneborne and Queensdale suburbs. In addition, to secure placement for Early Childhood Development (ECD) pupils, the corrupt network from the security guard at the gate to the headmaster, demands that parents pay $100.00 which most parents cannot afford. At the end of it all, most children are roaming around the streets as they fail to secure places at most government schools in the area. The teachers have a negative mindset about the kids in Epworth which they take as incompetent and they do not do their job wholeheartedly thereby relegating these children to failure before they even face real life.

Most households in Epworth no-longer afford basic three meals a day, but two (morning and evening) due to economic hardships that have hit the country since the small vending businesses are no longer viable. Some testified that it was now a luxury to buy meat as such mealie-meal and vegetables are the daily priorities. Children’s performance at school has been affected as their performance is undermined every time they go to school on empty stomachs.

Large-scale businesses have also isolated Epworth as not even one big supermarket (for example OK, TM/Pick n Pay) is operating in the area. This has caused small retailers to charge exorbitant prices which most households cannot afford. The rate at which the living standards of the people in Epworth are deteriorating is alarming and the residents are calling upon the government and politicians alike to treat them as humans with the deserved dignity and stop manipulating them for political gain. Comparing their wealth to that of Borrowdale, one participant in Epworth said that their wealth will go more than a thousand times to that of Borrowdale suburb. Government must urgently redress these social and economic imbalances in Epworth community and curb rampant corruption by the Local Board to ensure that every household has equitable access to social services such as healthcare, housing, education, garbage collection and sanitation and hygiene.

ZIMCODD Guest Writer

PRFT’s Submissions on the Global Week of Action Against Inequality (18- 25^th January 2019)

The Poverty Reduction Forum Trust (PRFT) joined other civil society organizations in campaigning against inequality during the Global Week of Action Against Inequality from the 18th to the 25^th of January 2019. The Global Week of Action Against Inequality coincides with the World Economic Forum (WEF) in Davos, Switzerland, where world leaders gather to discuss global economic prosperity. It is the PRFT’s submission that the global economic prosperity should leave no one behind. In this paper, we share our perspective on the dimensions of inequality in Zimbabwe and what needs to be done to stem the alarming inequality levels in the country.

Fighting inequality should be at the centre of Zimbabwe’s development plan. Globally, attainment of sustainable human development has been undermined by increasing inequality and Zimbabwe is not an exception. There is growing consensus that economic growth is a necessity but not sufficient to reduce poverty if it is not inclusive and if it does not involve the three dimensions of sustainable development – economic, social and environmental.[1] This means that economic growth cannot be celebrated as long as distribution of resources and service delivery is benefiting a smaller segment of the population. These observations necessitated the development of the Agenda 2030 and the 17 Sustainable Development Goals that all countries including Zimbabwe adopted in September 2015.

Inequality in Zimbabwe manifests itself in several forms and dimensions including lack of access to adequate and quality social services (health care and education), uneven allocation and beneficiation of economic resources (land, mineral resources) leading to uneven employment patterns and income disparities.

There is an uneven distribution of basic services with some social groups especially people living with disabilities, being increasingly  excluded from enjoying basic rights such as health and education.The marginalized groups continue to face inequality in form of limited access to justice across the entire human rights spectrum.

The level of access to economic resources is a key determinant to social and economic inequality trends in Zimbabwe. Zimbabwe is endowed with vast natural resources such as land, minerals, water, forest products and recently new forms of energy such as solar and hydro. However, persistent and structural gender inequality in land rights, mining and environmental governance continues to undermine women’s rights and the development potential of the sector. Entrenched gender bias does not only prevent women and youths from engaging with and accessing economic benefits from public resources, but manifests in how private companies and governments engage with communities. Gender-blind policies and practices and decision-making processes give rise to the systematic exclusion of women, a silencing of voices, interests and human rights infringements.

Zimbabwe is currently characterized by a highly informalised economy which in turn has contributed to a widened inequality gap. A number of factors have contributed to the growing inequality in the sector and these include lack of policy, resources, supporting environment, low levels of participation of the sector in decision making, corruption and mismanagement of resources among others. Gender inequality has increased due to a regressive taxation system and harsh municipal by-laws and regulations. The Government’s economic policies have continued to support the dual economy system which implies the notion of an enclave and structural induced inequalities. The informal sector activities and women dominated communal farming are still viewed as less important than the large scale businesses and corporates yet they have become a huge source of food security and employment for many households. The impact of gender blind policies in the informal sector greatly affects women who constitute a large proportion of the informal sector employees.

Inequality in Zimbabwe is also manifesting itself in lack of inclusiveness and equality in the government’s financing development approaches. The government is on a drive to generate resources for economic recovery through attracting Foreign Direct investment (FDI) under the “Zimbabwe is Open for Business” mantra. Lack of participation by the citizens in public policy formulation in Zimbabwe continues to undermine the positive developmental benefits that accrue from these investment deals. This has been a breeding ground for poverty and inequality as most policy decisions being made leave the majority of citizens poorer. The government’s private driven economic policies tend to support the neoliberal agenda, a developmental model that has failed to stem high levels of poverty and inequalities in most countries.

Recommendations

• Tackling inequality requires a holistic approach in addressing barriers to the realization of social and economic rights.
• Concerted effort is required to address issues such as accountability gaps, lack of citizen representation in public policy making and access to information.
• Concrete actions should be taken by all stakeholders in addressing power imbalances in the country.
• The government should consider adopting a sustainable developmental state approach as an alternative model to the neoliberalism agenda. The developmental state model is a balance of market and state approaches to economic development and it puts more emphasis on all stakeholders’ participation in economic development.
• There is also need for a multi sectorial approach in addressing inequality in the country. Partnerships among government institutions, policy makers, private sector, civil society organizations and academia must be fostered and strengthened. 

For comments contact:

Poverty Reduction Forum Trust

59 Mendel Road, Avondale

Harare

Zimbabwe

Tel: +263 242 307 472/3

www.prftzim.org

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[1]https://www.un.org/sustainabledevelopment/inequality/

As the entire world under the progressive banner of the Fight Inequality Alliance commemorated and shared lived experiences across the globe as to how inequality threatens the very survival of human civilization, on Friday 25 January 2019, the residents of Hobhouse, one of Mutare’s poor high density suburbs, organised themselves under the guidance of the Zimbabwe Coalition on Debt and Development (ZIMCODD) to discuss and develop strategies to escalate the struggle and fight against inequality.

Picture: Hobhouse meeting on inequality

From poor service delivery to joblessness, hopelessness and permanent state of despair, Hobhouse residents narrated how terrible their lives are due to the effects of excessive inequality exacerbated by a neo-liberal economic system wherein there is absence of welfare state that cater for the socially vulnerable and the economically marginalised and disadvantaged.

When one gets into Hobhouse, one is greeted by a grotesque picture of uncollected refuse, bumpy and pot-hole infested roads, bad odour that fills the overcrowded and heavily polluted environment and young people seated on bridges, community shebeens and in street corners imbibing illicit alcoholic substances known in local lexicon as “Musombodiya”, at the same time thwarting their depressive moods by smoking the highly dangerous marijuana. The situation in Hobhouse, Mutare is a sad reality of the continuously declining social services in the country.

Hobhouse has three local government wards which are wards 14, 16 and 17. All wards were represented at the meeting by community leaders and members as well as representatives from Community Based Organisations like the Community Crime Watch.

One of the greatest indicators of the scourge of inequality in the area is high unemployment among youths and the middle aged. Residents claimed that high unemployment rate is caused by massive de-industrialisation in Mutare where some big companies closed and others embarked on massive retrenchment.

To make matters worse, residents argued that the discovery and mining of diamonds in Chiadzwa Diamond Fields did not improve the lives of the people in Manicaland Province. They reiterated that up to now there is no meaningful change in the locals’ living conditions despite the availability of the precious mineral in the province.

Residents also dismissed statistics from the 2015 Zimbabwe Poverty Atlas which postulated that 50% of households in Hobhouse are not poor. Residents spoke vehemently against such falsehoods arguing that the situation on the ground is contrary to the above referred document. The people of Hobhouse in their emotional and succinct submissions argued that affluent suburbs in Mutare like Murambi, Greenside, Palmerstone and Morningside are indicative of the levels of income inequalities and disparities that exist in Mutare.

Such inequalities are evident in the size of residential stands, the availability of services like refuse collection, tarred roads, water and street lights which are available in the above mentioned low density suburbs but not in high density suburbs like Hobhouse.

For the residents of Hobhouse, it is an indictment on Zimbabwe’s liberation struggle and independence, that 38 years after political independence, they do not have good schools, vocational training centres, functional youth centers and economic and empowerment opportunities. All this attests to the fact that Zimbabwe in general and Hobhouse in particular remain a reflective evidence of the scourge of inequality which communities must mobilise against and pursue the struggle for an egalitarian and prosperous Zimbabwe.

In summation, if Zimbabwe is to become an Upper Middle Income country by 2030 as espoused in government policies, then this country needs to get back to the drawing board and facilitate an all stake/stockholders conference. At the proposed conference, the ‘Zimbabwe We Want’ initiative must be clearly articulated and agreed upon and the fight against perennial inequality in its various forms must be prioritised as an urgent issue that must be addressed. The impact of inequality on political and social stability of the country cannot be overemphasised, therefore the need for bridging the gap between the haves and the have nots is long overdue.

Aluta Continua…………………….

Nqobizitha Mlambo

For Zimbabwe Coalition on Debt and Development (ZIMCODD)

Introduction

The austerity for prosperity measures outlined in the Transitional Stabilisation Programme (TSP) together with the 2019 National Budget spells more harm than good to the poor as this means renewed “mourning and groaning” in the prevailing economic conundrum. Tightening of the fiscal space amid the huge tax burden has negative redistribution effects on the economy. Although austerity is considered as a ray of hope for economic stabilisation, citizens are skeptical that history might repeat itself mindful of the consequences of the Economic Structural Adjustment Program (ESAP) which left the economy worse off, further marginalizing the poor and vulnerable groups. Already, first days of implementation of the TSP has seen massive macroeconomic recession manifesting through rising inflation from about 4.5% in September 2018 to above 230%[1] in January 2019 and macroeconomic distortions fueled by the mythical 1:1 exchange rate between the Bond Note and United States Dollar. It is disturbing that the government is breaching its own promise of gradually reducing total public debt pursuant to the ongoing re-engagement process with the Finance Minister Honourable Mthuli Ncube vehemently revealing his mission of securing new lines of credit (both bilateral and private) at the World Economic Forum in Davos.

Considering that austerity measures are now being introduced against the backdrop of the deep rooted social woes, the outcome may not be desirable as the government cuts national spending to address the falling GDP, foreign currency shortages, unsustainable fiscal and current account deficits as well as huge debt burden. The words of Pier Carlo Padoan, the Chief Economist and Deputy Secretary-General of the OECD are more relevant now than before when he said; ‘There are ways for governments to put their fiscal houses in order, while supporting growth and reducing income inequality at the same time’. However, sins of the past have kept the government wanting, in which it finds itself in a fix due to the increasing social and infrastructure needs amid the unsustainable huge debt overhang.

This blog therefore explores the implications of the austerity measures on social spending and inequality in Zimbabwe in the context of the 2019 National Budget whilst providing recommendations to the government of Zimbabwe before the situation gets out of hand.

Emphasis on austerity undermines social service delivery

The effects of austerity are likely to widen the already high income inequality in the country. There is thus growing fear that fiscal consolidation to address the current economic crisis may worsen social distress in Zimbabwe as the government cuts social spending by 62%, from $213.4 million in 2018 to $81.2 million in 2019. Low income households disproportionately bear the cost of austerity through expenditure cuts on social protection programs which are meant for elderly persons, people with disability and beneficiaries of the Basic Education Assistance Programme (BEAM) and health facilities. Cushioning of these low income households has remained rhetoric. It is ironic that the government prioritised the Ministry of Defense and War Veterans having allocated US$546.9 million which shows a 30% increase from the 2018 budget of US$420.4 million. In the same vain, the Ministry of Home Affairs and Cultural Heritage’s budget increase by 19% from the US$435.5 million in 2018 to US$517.8 in 2019. Such a huge investment is already being felt as the country reformed into a military state characterised by military torture and killing of civilians by the police and army.

Taxation and inequality

The impact of taxation policy on distribution and equality should not be over emphasised.  Whilst owners of capital are being offered several investment incentives under the 2019 National Budget, the citizens are disproportionately affected by the additional 7c and 6.5c per litre of diesel & paraffin and petrol respectively. Implications of the 2c on intermediated money transfer above $10.00 tax are similar. Furthermore, the $10,000 flat tax for transactions above $500,000 is very regressive as it defeats the principle of equity.

Source: ZIMRA 2018

The country relies heavily on indirect taxes, which signifies the repressiveness of the Zimbabwe tax system, where the poor contribute more to tax than the rich. Value Added Tax on imports and local sales combined contributed 30% to tax revenue during the 3rd quarter of 2018. By its nature, VAT is transferable to the final consumer thereby eroding people’s disposable incomes.  Excise duty is the second largest contributor at 21%. Company tax is the fourth contributor at 12%, after individual tax (18%).  The investment regime in Zimbabwe awards excessive tax incentives to Multinational Corporations which has a bearing on the contribution of company tax to total revenue. This will be perpetuated by the quest to attract FDI through issuance of further tax concessions under the Special Economic Zones in particular and the Zimbabwe is open for business mantra.The soft spot approach to corporate taxation especially on the $4.5 billion tax debt does not only undermine tax compliance from other tax payers as it promotes tax dodging, leaving the tax burden in the hands of the majority poor who are taxed on the basis of convenience.

The tax relief measures proposed under the 2019 National Budget are discriminatory in nature, favouring senior public servants at the expense of the general citizenry. The senior civil servants are allowed to import vehicles of their choice duty free as part of their employment package whilst duty for the rest of citizens is levied in foreign currency. This alone, further, increase the rift between the citizens and duty bearers amid high levels of corruption in Zimbabwe.It is no secret that wealth is currently in the hands of the few especially those in public offices. The government’s complacency in dealing with the rampant corruption is a cause for concern.

Enrichment of the Private Sector depriving citizens

The government is replicating mistakes of the 1990s and expecting different results. The visibly failed commercialization and privatisation policy is being smuggled into the fiscal policy under the Zimbabwe is open for business mantra and the partial privatisation of state owned enterprises. Similar to ESAP, income opportunities for the urban middle income and working class will dwindle, while marginalizing the poor further especially women and children. Privatisation coupled with the proposed labour market reforms under the Special Economic Zones, further exposes labour to exploitation. On the other hand, the Public Private Partnership model especially in public hospitals led to segregation and deepening inequality between the “haves and the have nots.” Patients who were admitted in private wards at Chitungwiza hospital were reportedly treated with maximum care whilst those in general wards were relegated and sometimes doctors were not available to attend to them[2].

Policy Recommendations

It is not too late for the government to review the macroeconomic framework in consultation with the various stakeholders.  The macroeconomic framework should simultaneously support economic recovery whilst reducing inequality. The current social and economic crises in Zimbabwe require policies that do not compromise the wellbeing of low-income households,considering the current levels of deprivation and poverty. One therefore proposes the following key policy options;

1. The government should review the 2019 National Budget and increase resources towards social services. This can be done through targeted expenditures towards the marginalised groups.
2. Both ZIMRA and the Ministry of Finance should employ innovative measures for recovering the tax debt.This will go a long way in restoring confidence among other tax payers which is a prerequisite for tax compliancy. This will be coupled by the restoration of the social contract between the government and its citizens.
3. The government should enhance direct taxation and efficiency on tax administration to address tax related inequalities. Reducing tax incentives given to multinational corporations is a first step towards an equitable tax system.
4. The government should upscale its implementation of the transfer pricing rules introduced in 2016 to prevent tax evasion and avoidance by the multinational corporations who should be the main contributor to revenue.
5. The government should introduce and implement home grown policies in consultation with various stakeholders. Government dependence on the World Bank and International Monetary Fund prescribed policies undermines ownership of national development processes.

By Tafadzwa Chikumbu

ZIMCODD Socio-Economic Analyst

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[1]Steve Hanke, a renowned United States Economist, 2019

[2] ZIMCODD (2017) Impacts of Public Private Partnership Agreements to the Realisation of the Right to Health:The Case of Chitungwiza Central Hospital

Inequality refers to the unfair situation in society whereby some people have more opportunities and better lifestyles than others. One can also say it is lack of equality or fair treatment in the sharing of wealth and opportunities. A shona saying says “Kudiridzira rugare rwenyu nemisodzi yedu” (watering your good living with our tears). This is evident in Zimbabwe as there is a huge gap between the few rich and the majority poor .Distribution of wealth and resources tips the equality scale against the majority poor citizenry. Inequality in Zimbabwe has persisted through ages, gender, social, political and economic status dictating lifestyles for the haves and the have not. From colonial times the “them and us” syndrome has persisted into the post independence era with the white colonial masters replaced by powerful black political elites and the citizens continued with their suffering. The promise of the Biblical Canaan never materialized for the majority of the people but emancipation from poverty remained an elusive dream.

As we commemorate the Global Week of Action Against Inequality, citizens of Zimbabwe are mobilising themselves under the banner of #FightInequality demanding an end to the Age of Greed. The collective actions by the people speak to the fact that solutions to the problems of poverty and inequality do not come from the political and business elites gathered in Davos for the World Economic Forum, but rather from the people. The way to tackle inequality is through strengthening the power of ordinary people through a concerted effort to unite for change and offer their solutions to combat the scourge of #inequality. Citizens should strengthen their voice and participation in economic governance issues and organise themselves into vibrant social movements that lobby for the improvement of their welfare.

Inequality in Zimbabwe plays a pivotal role in the collapse of the economy. Concentration of power and wealth in a few hands coupled with lack of transparency and accountability has led to perpetual abuse of power and public resources at the expense of the majority poor. Inequality has manifested in the form of lifestyle disparities with extremes on both ends such that while the few and affluent live in extravagancy of public spending and show off, the majority poor are struggling for survival. Dealers and moguls such as Wicknel, Ginimbi and Philip C among other showy public figures spend thrift while there are families struggling for a meal a day in neighbouring suburbs of Harare such as Hatcliff and Epworth with generally sordid way of life.

The citizens of Zimbabwe demonstrated against the fuel price hikes and unaffordable costs of bus fares which had risen from a $1 to $3-$5 and it has become difficult to go to work on a daily basis for the ordinary working men and women. It is difficult because their salaries are meagre at a time when basic commodity prices are rising at catastrophic levels.  The exchange rate between the bond note and the United States dollar continues to rise drastically and not everyone can afford to buy the United States dollar on the parallel market to buy basic goods.

Furthermore, Inequality has led to high unemployment for it has led to constraints that prevent the poor from investing in education and health. Many people have engaged themselves in entrepreneurial jobs as the government has failed to create jobs for the people. Industries have closed and others still are winding down operations due to unfavourable macroeconomic conditions in the country and it is the majority poor who are hardest hit by the economic meltdown. Limited economic opportunities for young people have exacerbated the inequality gap, as corruption and nepotism continues to relegate those from poor backgrounds to the marginal end of the economy. This further deepens the already high levels of inequality between the rich and the poor in our society. These youth end up doing drugs as their lives are idle. The government of Zimbabwe has the mandate to create an enabling environment which promotes equal opportunities for all its citizens as provided for the preamble of our national constitution. #FightInequality

By Batsirai Magocha

Inequality relates to variations in living standards across a given population.[1] Inequality is related to poverty, which is a multi-dimensional concept that seeks to measure levels of deprivation encountered by a person, household or community.[2] The choice of poverty indicators are dependent on the context in which the deprivation is being considered and these may include, but not limited to income, assets, food, clothing and access to shelter. In development discourse, this deprivation can interchangeably be referred to as social exclusion and vulnerability. The spatial distribution of violence and conflict experienced in Zimbabwe recently tells a bigger story in relation to the income inequalities.  It not by coincidence that uprisings and protests were experienced in low income, high density areas such as Budiriro, Epworth, Dzivarasekwa, Chitungwiza, Hatcliff suburbs of Harare while the low density leafy suburbs such as Borrowdale, Hellensvale, Crowhill, Glen Lorne and Mt. Pleasant never experienced similar violent protests. Every conflict has its deep seated roots, and in dealing with such there is need to address these structural issues and not the symptoms only.

It is paradoxical that the people of Zimbabwe embarked on civil protests just a week before the Week of Action Against Inequality (19-26 January 2019), where citizens mobilise themselves globally to show the world that people will not tolerate today’s age of greed. Citizens have, time and again, showed that the answers to the global challenges do not come from the elites and political leaders who actually are making inequality worse. Hence the only way to tackle inequality is through strengthening the power of ordinary people by uniting for change and listening to their solutions.

The Preamble of the Constitution of Zimbabwe says “We the people of Zimbabwe, United in our diversity by our common desire for freedom, justice and equality, …, Cherishing freedom, equality, peace, justice, tolerance, prosperity and patriotism in search of new frontiers under common destiny, …”. However, the desire for equality by the majority of ordinary citizens has always been a deferred dream whilst cherishing equality is only by the handful business and political elite.

The pursuit of a neo-liberal agenda particularly in the past one and half years has worsened the plight of the poor (vendors, smallholder farmers, rural folk, youth, disabled and other vulnerable groups) of our Zimbabwean community. Despite the cash shortages that had long hit the country even during the time pre-November 17 2018, the long-standing equal exchange rate between the Bond and United States Dollar (USD) started to crumble gradually. The new dispensation’s liberalisation gear had been engaged and the black market started to proliferate. The four-tier transaction payment system thrived until the Government itself in the 2019 National Budget declared that duty for imported vehicle will be paid in USD as well as other selected transactions.

Despite this technical acknowledgement that the Bond was not equal to the USD as the market had been left to determine market exchange rates, the Government remained adamant and till today it continues to say that the Bond equals USD. The introduction by the Government to reject the Bond on other transactions resulted in most traders openly refusing any other form of payment except the USD. Whether a person if formally or informally employed, the majority are scavenging the USD to acquire some crucial goods and services such as medical drugs as most pharmacies do not accept any other forms of payment. Basic commodities’ prices have increased significantly since the new Government took over and inflation is currently estimated to be over 300%, though officially the figures are unbelievably low at around 24%, a clear indication that the Government is living in denial of their failure to govern our beloved country. Transport fares went up as well and the majority poor households are sweating it out to commute to and from work, with the students alike.

A huge inequality gap is being witnessed as one group, just a handful, has unlimited access to the USD whilst the majority do not have this privilege. To make matters worse, President E. D. Mnangagwa sharply increased fuel pricesfrom an average of $1.30 to $3.11 for diesel and $1.35 to $3.33 for petrol. The move was uninformed as the reaction by the citizens witnessed on the 14^th to 16^th of January 2019. All of a sudden, public transport operators had hiked prices once again to unattainable levels and the only solution by citizens within their means was torevolt against this kind of manipulation.

On average, more than 80% of Zimbabweans earn about $400 per month and considering that bus-fares for high-density suburbs are relatively high than those for low-density areas, a person would need $5/day to and from town and at least $100/month just for transport. Literally 25% of a household’s monthly income would cover for transport only, how ridiculous. During the week of the civil unrest, most casualties were from high-density areas and the majority of these people had to go home (e.g. Chitungwiza, Mabvuku/Tafara) on foot as they could not get public transport. In contrast, leafy suburbs like Borrowdale were actually shocked on the demonstrations that were going on in the high-density suburbs. They do not rely on public transport and their homes are secured by razor-wires and electric gate where the brutal soldiers cannot easily access and ravage the people.

It is not surprising that the current economic inequality in Zimbabwe rages around 90%. This should stop and the Government of Zimbabwe, led by President E. D. Mnangagwa should, with immediate effect, resolve the currency issue. Zimbabweans should not continue to suffer as the Reserve Bank of Zimbabwe is protecting the interests of looter-preneurs who are holding the economy at ransom at the expense of the current and future Zimbabwe. Viva Social and Economic Justice and Equity in Our Life Time!

By Confidence Tendai Bobo

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[1]https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/3804.pdf, Accessed 22/01/2019.

[2]http://devinit.org/wp-content/uploads/2016/07/Definitions-and-measures-of-poverty.pdf, Accessed 22/01/2019.

The old saying that the rich are getting richer and the poor poorer continues to manifest itself today in Zimbabwe.

This phenomenon of widening inequality has been particularly evident in Zimbabwe’s economy which reflect among the world’s highest Gini coefficients. A Gini coefficient is a measure of the gap between the rich and the poor. A Gini value of zero represents absolute equality, a Gini of 100 represents absolute inequality. In Zimbabwe we have a Gini value of a shocking 60 making our country one of the most unequal society in the world.

The challenge of inequality in our country today is in a way that wherein those in power have abused their positions to accumulate wealth for themselves, widening the income gap.

Increasing inequality is potentially dangerous for any economy over the long-term for it kills the middle class and destabilises the social cohesion within a society. The recent demonstrations by Zimbabweans in low income high density suburbs is a reflection of this truism.

Some neo-liberal and far right economists will argue that an increase in wealth among the rich is better for all as investment and spending by the rich a trickle-down effect that results in job creation and better livelihoodsfor the poor. However,

pro-poor movements have argued that the rich and affluent spend their money largely on goods and services that disproportionately benefit them and thus entrenching their position and further widening the gap between the rich and the poor.

They also have the added advantage of being able to minimise their effective tax rate through often much lower capital gains taxes, elaborate tax avoidance schemes and more often than not, through their ability to influence policy makers. This ultimately results in much of the tax burden being borne by the poor and the middle class.

The current income disparities in the economy have served to perpetuate inequality. Sharp increases in the prices of basic commodities have eroded the buying power of the working class. Furthermore, the three tier pricing system has also widened the gap between those with access to hard currency and those who do not have similar access.Many basic commodities are now sold in USD while employers including government, which is the largest employer in the country, have continued to pay salaries in bond notes and RTGS.

The population is largely educated, but the environment continues to be skewed in the favour of the rich and those in authority, and provide very few opportunities for the poor to rise to the limits of their talents and create wealth.

Industry continues to struggle to create formal employment. While most people have now taken up micro-entreprenuership for survival, the middle class is being squeezed thin.

The ultimate result will hence be sluggish economic growth for as long as there isn’t a robust and thriving middle class that drives demand and supports industry.

As we commemorate the Global Week of Action Against Inequality, as Zimbabweans it is prudent that we take cognisance of the words of the 44^th President of the United States of America Barrack Hussein Obama, who in 2013 said, “Inequality is the defining challenge of our time.”

Thanks for joining me!

Good company in a journey makes the way seem shorter. — Izaak Walton