adminA new constitution is a prerequisite of holding elections under the Global Political Agreement that was signed by three principals from Zanu-PF and the two Movement for Democratic Change parties in 2008.
Indeed, it has been a month of voting in Africa and other parts of the world with Kenyans going to the polls in which Uhuru Kenyatta prevailed over Raila Odinga.
In the Falkland Islands, which is an archipelago on the south coast of the Atlantic, the people voted for retaining British autonomy with a 99 percent vote.
In the Vatican more than 12 billion Catholics are watching closely as cardinals meet in the Papal Enclave to vote to choose the new head of the Catholic Church.
Coming back to Zimbabwe and the upcoming referendum, it is critical that the process is done properly.
This is because the outcome of the referendum and how it is perceived has a bearing on investment inflows into the country.
Serious investors tend to shy away from those countries that do not follow proper channels or their own laws.
If investors are not confident about the tenets of the constitution in terms of property rights, constitutionalism, public finance management, right to diversity even in languages and also checks and balances in the utilisation of natural resources which include land, they will take their investment elsewhere.
All companies in a country without a sound constitution will not promote innovation and entrepreneurship regardless of how steadfast and particular company practices maybe — they will still suffer the consequences.
Markets honour the constitutional principles as they tend to exist by the grace of investors.
It really serves us well to appreciate that no market has a divine right to investor’s capital.
By implication, all our natural endowments, which include diamonds, platinum, flora and fauna, will amount to nothing if there is no sound legal framework to attract their exploitation.
It is commendable that since 1980, Zimbabweans have been in agreement on coming up with a fine document of this sort, it clearly spells out the need for a well-resourced anti-corruption commission, a land commission, the rights to empowerment for the youth, the elderly, women and the disadvantaged.
It is not vague like the Lancaster House on same sex marriage while in the same vein emphasising transparency in financial management with debt ceiling mechanisms being clearly pronounced.
Chapter 17 of the draft relates to public finance management, the Parliament as a pillar of the State is given prominence on how public funds are to be accounted for which is a modern-day of embracing financial democracy.
In the US, last year ended on a heated note with the Republicans pushing for a debt ceiling level which was not in line with the Obama administration’s policies.
A compromise was eventually reached following weeks of deadlock.
Zimbabwean legislators have not been that active in enforcing fiscal discipline as most of the outstanding debates in august House had been mainly to do with human rights and other politically convenient matters. The new constitution sets a limit on the borrowings of the State, the public debt and also debt and obligations whose payment or repayment is guaranteed by the State.
The Finance Minister is obliged to continue being accountable to the National Assembly on the performance of the loans raised and guaranteed by the State.
Currently, very few if any policymakers have full knowledge of the size of the public debt, which had left every proverbial analyst throwing a figure to an argument without specific basis.
The most convenient route to solving the external debt issue can only arise when such a Bill is protected and respected.
The idea that Zimbabwe should apply to be classified as a Highly Indebted Poor Country status is being promoted by those who lack stamina on how to manage the country’s debts before they worsen.
The implications of attaining a HIPC status may be disastrous.
Under the new constitution, the Reserve Bank of Zimbabwe will remain as it is with its functions of regulating the monetary system, protecting the currency of Zimbabwe in the interests of balanced and sustainable economic growth and also to formulate and implement the monetary policy.
I am not sure whether the current set-up and structure will remain effective.
My humble opinion was to make the central bank more independent and shedding off some of its responsibility either through creating financial service authority board or a governor who might be appointed from within its structures too.
The Anti-Corruption Commission’s chairperson will be appointed by the President with eight members to support its cause.
One of its functions will be to promote honesty, financial discipline and transparency in the public and private sectors.
It is true that corruption is costing this economy an estimated US$800 million per annum in all sectors of the economy.
What will be of significance in this regard is constitutionalism, not the constitution itself. There is need for determined implementation of the constitutional mandates by the commission without fear or favour.
Another independent body, which will support economic growth, is the land commission.
Since it is clearly enunciated that the land reform process is irreversible, any covert or overt strategies to overturn the applecart might not live to witness the new day.
This is not a Zanu-PF or MDC constitution, which means the land matters must be viewed with an inclusive perspective.
Any political party with a diverse manifesto on how it views the programme might be pursuing a constitutional coup if it is to pronounce a different way of handling the land subject.
The commission is expected to carry out audits where unutilised land will be repossessed and redistributed among those who have potential to farm but have no land. The land tenure policies are expected to make the commodity bankable as any property that cannot be used as collateral in borrowings essentially has no market value.
Land audits will expose greedy citizens and politicians who had compromised the potential of the Government in feeding its citizens, what could be the rationale of possessing three farms when it is the same status which led the Zimbabweans to take up arms and fight the erstwhile colonisers.
It remains one of the national objectives of Zimbabwe as enunciated in the draft constitution to see to it that there is free and compulsory basic education for children with higher and tertiary education being uplifted.
The improved and sound education policy is a rich background to productivity in any economy. Let us embrace the draft constitution, it is good for the nation.
Christopher Takunda Mugaga is an economist. He is the Head of Research for Econometer Global Capital, a regional finance and economics research firm. He can be contacted on: [email protected] or + 263 772 340 353 / +263 776 266 062.
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