Zim to withdraw aid for black farmers

[duncan drennan]

Zim's central bank governor has announced that black farmers are going to be weaned of subsidies....

President Robert Mugabe's government will soon withdraw financial support for black-owned commercial farms resettled under Zimbabwe's controversial land reform policy, state media reported on Monday.

The move follows charges by central bank governor Gideon Gono during a parliamentary meeting last week that the reforms had caused chronic food shortages in the one-time food exporter.
________

"It is now seven years since we reclaimed our land but we continue looking at government for support," Gono said. "Next season we will wean off all A2 [black] farmers as they are now grown-ups."

Gono accused large-scale farmers of selling subsidies received from the government and failing to repay loans.

He, however, said the government would continue supporting small-scale, subsistence farmers.

Full story, "Zim to withdraw aid for black farmers" on M&G Online

[Dave A]

He, however, said the government would continue supporting small-scale, subsistence farmers.

Reward the subsistence farmer, penalise the commercial farmer?
What gets rewarded gets done. Is this sending out the right message?

[duncan drennan]

Reward the subsistence farmer, penalise the commercial farmer?
What gets rewarded gets done. Is this sending out the right message?

Maybe he read your thread on protection causing laziness?

[Dave A]

Maybe he read your thread on protection causing laziness?

I believe that I was quoting our esteemed Trevor Manuel. Talk about an incentive for laziness though. Watch all the "commercial" farmers become subsistence farmers.

[duncan drennan]

Other than the obvious they clearly have a problem though, which is summarised in this statement,

Gono accused large-scale farmers of selling subsidies received from the government and failing to repay loans.

Farming subsidies are nothing unusual, but it would seem the issue is what is happening to them.

But this makes me think....what are the similarities between Zim's land reform, and SA's BEE policies? The key to both is the redistribution of property, but BEE is certainly more subtle (and therefore possibly more insipid). If Zim is not suffering from the "unintended consequences" of their actions, what are the consequences of ours?

I just noted on the news that the tender for the new lotto operator has been declared flawed due to the involvement of a number of ANC officials, will the current BEE beneficiaries one day be the people, "selling subsidies received from the government and failing to repay loans?"

Maybe my brain is just firing off random synapses...

[duncan drennan]

There is another article on Gono's views,

He told the parliamentary group he received desperate calls daily from state food and petrol distributors, the national airline, and the state railway and power utility -- all demanding hard currency for imports. An official from the power utility called at dusk saying: “If you don’t give us money, the nation will be in darkness.”

But he said the bank’s priority was to allocate hard currency for imports of maize, Zimbabwe’s staple grain, to avert a looming food crisis. He admitted currency had been diverted from almost every government department to buy food.

This is what REALLY blew me away though,

“If we were talking about local currency, I would say, ‘Don’t worry, in the next 30 minutes we will print money,’” he said, but added that he could not print US dollars or British pounds.

Does Mr. Gono possibly need a lesson in the effects of money supply? What's that in the crowd?? Did I hear someone say inflation?

Eish....and this guy is the reserve bank governor