Response to Reserve Bank of Zimbabwe monetary policy statement

Ambassador Christopher W. Dell

February 7, 2007: Governor Gono’s Monetary Policy Statement of January 31 could mark an important moment in restoring prosperity to Zimbabwe. As I told him that afternoon in his briefing to the diplomatic and business communities, I welcome his courage in speaking out and his recognition that the primary problem in Zimbabwe today is governance. The key to turning around Zimbabwe’s economy, as the Governor said, is the political will needed to implement the market reforms the IMF and others, including the United States, have been recommending for the past few years.

The Governor also deserves commendation for recognizing that Zimbabwe’s problems are of Zimbabwe’s making and are within the power of Zimbabweans to solve. Sanctions have been a convenient excuse but neither the U.S. nor any other country has imposed general sanctions on Zimbabwe. In fact, contrary to recent press reports, U.S. companies, with the support of the U.S. government, continue to do business in Zimbabwe, and Zimbabwe enjoys a trade surplus with the U.S. Instead, what we and others did was to target financial and travel sanctions at the roughly one hundred individuals most responsible for undermining Zimbabwe’s prosperity and democracy.

The Governor’s call echoes the conclusions of a conference held in Harare last October, sponsored by the American Business Association of Zimbabwe. At the conference, economists from southern Africa, from Brazil, and from the U.S. underscored the importance of a free-market economy and security of property to investment and economic growth. The Brazilian economist and the former Finance Minister/former Reserve Bank Governor of Malawi in particular emphasized that the success of economic reforms in their respective countries had depended vitally on the political will to make the difficult decision to embrace tough reforms.

At his briefing, I also told Dr. Gono that if the Zimbabwean government is sincere in its desire to improve governance by embracing economic and political reforms, the US, as well as other donors, will be supportive. I wish Dr. Gono, the Zimbabwean government, and above all the Zimbabwean people success in this regard. The future of your country is in your hands.

Christopher W. Dell
Ambassador of the United States of America