The Need for a New Road Map
In 1980 when we came to Independence, one of the first things we did was to join the World Bank and the IMF. Membership of these global financial institutions is accepted as an essential step towards growth and stability. That year two countries were accepted into the club - China and Zimbabwe.
China had a GDP per capita that was half of the GDP per capita of Zimbabwe, did not have a fraction of its natural resources, was half desert and had come out of a long period of political and economic repression that had culminated in the Red Revolution during which tens of millions had died. Agriculture in China was not able to feed its population and millions died of starvation and malnutrition each year. China faced a hostile global community which was determined to isolate the Country and to minimize its influence in the region.
Zimbabwe had 17 PhD graduates in its first Cabinet, virtually no debt, a GDP per capita that was the second highest in Africa, a diverse economy based on agriculture and industry, a small but growing mining sector and a currency that was worth US$2 per Z$1. Its human resource base was excellent with an abundance of skilled and experienced labour. It had just emerged from 15 years of civil war, 13 years of mandatory UN sanctions and over 80 years of settler administration and dominance. It had the unstinting support of the Western world who promptly pledged US$5 billion in aid to the new country.
If this had been the start of a race to see which country would develop, who would you have backed as most likely to succeed? On paper, clearly Zimbabwe had the edge over China.
Today, there simply is no contest, China has the second largest economy in the world and although it is still poor in per capita terms, has lifted half its population out of poverty and created a vast middle class. It has grown steadily at rates that most economists would have said were unobtainable - exceeding 10 per cent each year for over 30 years. It not only feeds itself but has been able to meet growing demand for better foods and a higher quality of life by all its people. Far from being isolated and ignored, China has sound political and economic relations with the whole world and is a highly regarded member in good standing of the IMF and the World Bank.