Revisit social contract

He said at most only four companies were operating viably while he stressed that reports of the economy was performing well were far removed from reality.
He argued his views well but what got me thinking was the need for Zimbabwe to come up with a viable social contract for a common redress of challenges bedevilling the economy.
During the 2007-2008 economic crisis social contract or social dialogue had become the catchwords at many a conference but the concept failed to take off despite the historic signing of three agreements by Government, industry and labour on June 1, 2007.
At that point there was too much chaos in the economy and the signed agreements remained good on paper as one partner felt cheated by a decision by the other.
Remember the era of price controls and wage freezes and other such interventions that brought unintended consequences worsening the plight of Zimbabweans.
I remember economist David Mupamhadzi, quipping in one of his weekly articles then that Zimbabwe never fell short when it came to policy formulation but was dismal when it came to implementation.
Sadly, this has largely remained true in many respects. The protocols never saw the light of day.
Back to the social contract.
The interest and excitement exhibited by the three social partners and other observers at the signing ceremony five years ago told a story of how everyone was desperate to have a workable solution that could rid the economy of such challenges as hyperinflation then, the parallel market and the shortage of foreign currency among other challenges that besieged the economy then.
Although the landscape has changed somewhat, the spirit that motivated the three social partners to come to the table then should give impetus to a social contract now.
Presently, business is moaning over the challenging operational environment, labour in both Government and the private sector is finding the going tough while Government has its concerns as regards demands by both business and labour.
This is fertile ground for the establishment of a social contract. One that spreads responsibility across all parties with no one party stepping on another’s toes in the process.
A social contract provides a win-win situation and a common ground from which Zimbabweans can collectively address socio-economic problems in a more harmonious and sustainable manner.
The need for such a framework can never be overemphasised given the challenges in the economy and the hunger by everyone I suppose, to get the economy ticking.
The growth achieved in the last three years should give impetus for the signing of a social contract that will expedite the rate of economic recovery and subsequent growth.
Many economies globally, particularly in Asia, the Americas and Africa are anchored on different dimensions of social contracts which have seen them achieve much in a short space of time.
This, to some extent, explains the phenomenal growth of the Asian tigers as a case in point.
Zimbabwe has a lot of lessons to draw from these economies but the good thing is that Government, business and labour do not need much convincing on the need for a social contract. They are sold to the idea already but what is required is a little something to nudge them into action. The partners need to come round to the table once more, deliberate and put pen to paper.
First and foremost, there is urgent need to revisit the three protocols signed on June 1 to suit the current environment while discarding completely any aspects that have now been rendered irrelevant by the passage of time and the transformation witnessed since 2007.
A lot has happened and a lot has changed but there are some issues that remain outstanding which had been incorporated into the protocols.
With capacity utilisation remaining a challenge today as it was five years ago, the protocol on Restoration of Production Viability is still relevant in most aspects but the wording regarding its provisions and modus operandi may need to be revisited while the one on Incomes and Price Stabilisation also remains critical even under the multiple-currency regime. We have seen prices rising willy-nilly while employees are demanding salaries and wages that take into account the Poverty Datum Line. Employers have also felt shortchanged by workers demanding higher salaries while falling short on productivity.
The matrices have remained complex and need redress.
The Protocol on Mobilisation, Pricing and Management of Foreign Currency may sound irrelevant now at face value but it needs panel-beating to apply to today’s challenges such as the liquidity crisis that has beset the economy since 2009.
Other new or all-encompassing protocols or aspects within the 2007 protocols will be required to deal with a wholesale of challenges that are constraining sustainable economic growth. All these require a symbiotic relationship between the three social partners. The need to renew the impetus around the social contract is critical at this juncture as epitomised by the current and seemingly incongruous voices from business, labour and Government in most cases.
Sustainable economic growth can only come about through an effective and transparent process engendered in social dialogue.
The Tripartite Negotiating Forum, formed in 1998 to bring together Government, business and labour to build consensus on socio-economic development, is naturally the point organisation that should drive the process.
The body has largely remained a talk shop but ongoing efforts to enact an Act of Parliament under which it will operate should yield results.
In the last quarter of 2010 there were reports that the body’s technical committee was revisiting the three 2007 protocols to revive the process but that was the last we heard of it.
We are not privy to efforts behind the scenes at TNF but there is need for transparency and accountability for such a national process. How much progress has been made in this regard and what is being done to foster smart partnership between the three social partners?
We need answers.
In God I trust!