Mthuli's Austerity Measures Will "Never" Lead To Economic Recovery - ZCTU

Zimbabwe Congress of Trade Unions president, Peter Mutasa, said that the long term solution to the problems bedevilling the country lies in instituting real economic, social and political reforms.

Mutasa said this during an interview with The Independent reporter Lisa Tazviinga. He argued that is the short term, workers should be paid salaries in US dollars or the equivalent at the interbank rate. Said Mutasa:

The long-term solution requires real economic, social and political reforms. Without structural economic reforms such as ditching the neoliberal austerity policy, the economy will not recover.

We need to come up with a pro-poor economic programme that is inclusive, owned by the citizens and democratically formulated.

There is a better choice for investment and growth than austerity. Austerity is a form of ESAP and will never lead to economic recovery. The Government must also respect the constitution, rule of law and fundamental freedoms of citizens.

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Without widening the democratic space, the country will not be able to attract investment and stability necessary for economic recovery.

However, in the short term, there is no choice than re-dollarisation. Workers must be paid in US dollars or the equivalent at the interbank rate.

The disequilibrium between prices that are pegged in US dollars and salaries that are in RTGS is not sustainable. Workers are struggling and businesses are also folding, there is an urgent need for intervention.

More: The Independent