Indigenisation: Empowering to dis-empower
Last Updated on Wednesday, 11 July 2012 15:29 Written by Administrator Wednesday, 11 July 2012 15:18
Fissures have emerged in the inclusive government over the proposed indigenisation of private schools. A government notice issued last week by empowerment minister Saviour Kasukuwere gave all crèches, primary, secondary and universities with an asset value of a mere $1 a year to comply with the controversial indigenisation policy which requires 51% shareholding by indigenous people. The regulations are said to be targeted at learning institutions with multi-racial students and elite suburban private colleges.
The effort by the government of Zimbabwe to redress historically generated economic imbalances by colonialism is welcome. But the ZANU PF backed policy has, in the name of empowerment, done the opposite: to disempower.
In the recent years, private schools have been sprouting countrywide to fill the void created by government owned schools that lacked learning materials and the standard of education has lowered over the years . The Indigenisation and Empowerment policy stipulates that Zimbabweans own the majority of any business in the country; so care is needed when the policy is applied to education, which is generally not a business but a service. Most schools in Zimbabwe not owned by the State, either through central government or local government, are mission schools and trust schools. In effect such schools own and were set up to provide a service, not give anyone an income. Another large group of mission and private schools were established by religious communities. While many have been converted to non-profit trusts some are still owned by the religious community, we cannot imagine that the Indigenisation regulations apply to these schools, since they are not businesses, and truly, ZANU-PF is clearly trying to make political points.
Apparently, with everything that gives a picture of huge amounts of money in Zimbabwe, ZANU-PF wants its fingers on it. But it is however unfortunate that what the party lays its hands on is destroyed. This explains why once highly productive farms have since stopped producing, this also explains why the industrial production rates have gone down, with many industries being shut down because of lack of input. Zanu PF should not be allowed to destroy the education sector just as they should lay off the banks. For, why should one share in something they never helped one make?.
Very loosely indigenisation provides quick fix solutions, but fails to enrich the individual in the long term. Implementation of the indigenisation policy is ill timed, it comes at a time when the inclusive government is battling to resuscitate the economy as well as restore lost confidence among investors, local and international. Most schools are struggling to rebuild what was once prided as the best education system in Africa. It is also questionable whether locals have the capacity to generate the required capital investments to buy shares or another case of enriching the few who are already empowered. Indigenisation should begin with honest intent, goodwill, followed by due diligence of all parties involved. For the last 30 years or so, government has only paid lip-service to those issues. But now suddenly they are fast tracking to beat the elections deadline.
Government is not an entrepreneur and has no business in business. Its role is as the regulator, crafting legislation for posterity, not tailor-making roles for power pundits. Government must utilise a regulatory framework that is all encompassing, inclusive of all stakeholders, that delivers genuine success not just to some people, but to all the people in the country. The Zimbabwean brand of indigenisation "selectively" deals with the issues, whereas regulation "un-selectively" deals with all of the issues. Indeed, there is a constitutional crisis with the indigenization policies but the bottom line is that the objectives are well-intended and look sound, just the implementation agenda is weak and pathetic. We embrace the principle and spirit of genuine empowerment of the people of Zimbabwe. In any language it is a very noble concept indeed. Indigenization laws should effectively and impartially redress economic imbalances.
Professors Daron Acemoglu and James Robinson book, "Why nations fail" clearly spells out why some countries get rich and why others remain poor. And their one word answer is "politics". They refer to a regime such as ours as an "extractive regime", because politicians extract to survive, which explains the collapse of companies and ultimately the nation. The views of such governments and that of its people do not coincide because their agendas are different. And most interestingly, of the successful countries, none are underpinned by an indigenisation exercise! In a nutshell, Zimbabwe can sing about indigenisation but without correct and sustainable economic policies, there will be no economic prosperity.