Wednesday 25 July 2012

An Appraisal of the Medium Term Plan within the Context of the 2012 Mid-year Fiscal Policy Review


The recent pronouncements in the Mid-Term Fiscal Policy review are framed with the framework of Medium Term Plan (MTP) which was enacted by the Government in 2011. The legal provisions of Section 103 of the Constitution of Zimbabwe read together with Section 7 of the Public Finance Management Act oblige the Minister responsible for Finance to provide full and transparent accounts before Parliament indicating the current and projected state of the economy, the public resources of Zimbabwe and the fiscal policy of the Government.  In that regard, the fiscal policy review becomes a critical benchmark to measure and monitor the progress that has been made by the government in upholding the set objectives of the plan. The NYDT as a youth focused organisation is very much interested in this review offering bias on the efforts by the government towards youth empowerment. This commentary examines the current policy review and juxtaposes this with the pronouncements made under the MTP.

According to the report by Minister Tendai Biti on the mid- year Fiscal Policy review on the issues concerning the youths and women, the government has instituted policies that, "Enable women and youths participation in the mainstream economic activities for example, National Youth Policy, National Gender Policy, Mining Policy, Land Policy and Small to Medium Enterprises Policy."


The report further indicated that as a drive to support such policies, the government has instituted funding facilities such as the Indigenisation and Empowerment Fund, Youth Development Fund, Mining Industry Loan Fund, Women Development Fund and SME Fund that are meant to “facilitate indigenisation, youth and 
women’s access to skills training and affordable credit as well as expand employment opportunities”.

Sober inspection into this report presents some challenges that cannot be ignored at all. It should be noted that one of the critical components of the MTP was the drive up until 2015 to promote youth and women participation in policy related issues. The mentioned policies can be viewed as a clear discord to this proclamation. For example the National Youth Policy is clear testimony in lack of a consultative drive by the Ministry of Youth, Empowerment and Indigenisation. Critical to note has been the levels of information sharing between the policy makers and the youths as well as women. 

Research conducted by the NYDT indicates that a significant population of the youths are not aware of these policies and how they have a direct and indirect effect on them. This occurs two (02) years after the enactment of the MTP, which crystallised the use of developmental journalism as a tool to ensure that youths and women in particular are fully aware of these and other policies. Interestingly, this initiative has not been promoted in the public media. The NYDT in its commentary in 2011 applauded the use of developmental journalism and cited the need for the government to be proactive so as to ensure that all citizens are equally equipped on policy related issues. The organisation further raised issues of financial constraints that are largely associated with such an initiative. The state of affairs therefore has led to most youths and women failing to relate to the policy review and have failed to generate the hype and excitement it deserves. It is on such reality that the NYDT policy commentary based its criticisms. It is such a gap that needs to be addressed through strategic partnerships that are outlined by the Medium Term Plan (MTP).

In the report, the issue of empowerment funds is a highly contentious issue. Issues of consultation availability, administration and selection criterion have been subject to debate. Under the youth fund there is still a backlog of proposal reviews, with the responsible bank currently looking into proposals submitted as of December 2011. It is such cases that have dampened the zeal of most youths that have and those that are yet to apply.  Additionally, this has raised suspicion on the selection criterion of the fund with some pointing out that the fund is largely partisan. According to the Zimbabwe Youth Council (ZYC), 44, 1 percent of the youths that have managed to visit their website have noted that the youth fund is inaccessible, whilst a minute 15 percent have indicated the opposite. It is such challenges which youths face that necessitates the need to delve deeper on the issue of youth funds.

 Rightfully, the report points out the challenges of administration, capabilities and planning that have somehow affected the effectiveness of the fund. It is from this context that the Minister of Finance points out that, economic empowerment issues remain an unfinished agenda in view of these challenges. Suggestions that have been proffered by members of the NYDT have been that the fund needs to harness the potential of youths in ICT as well attempt to educate the youths. It is such suggestions that cannot be totally ignored. Also, the stringent conditions associated with all these funds should be relaxed so as to benefit its rightful target. It is from this and other basis that the NYDT together with other stakeholders has been raising such issues.

The fiscal policy failed to map its provisions within the set targets of the MTP. The MTP stated that it will strive to reduce the unemployment levels from 80 percent to 55 percent by 2015. Amongst other initiatives to accomplish this mammoth task, the plan had indicated that it will help in the construction and overall rehabilitation of close to 25 000 vocational training centres in Zimbabwe. However, from the fiscal policy review, the minister made no mention of this fact and failed somehow to relate to the set objectives of the MTP. This clear omission of these facts becomes a major concern and shows how the fiscal policy review just like MTP is not being implemented fully by the government. 

As an aside, the fact that the Fiscal policy only views solution to unemployment rate as funds shows a clear lack of the visionary element and total ignorance of the youths that are the majority of this country. It is in this vein therefore, that calls should be made on the next budget consultative meetings that the youth component be more pronounced and efforts are made to ensure that woes of unemployment are diligently dealt with as outline in the Medium Term Plan. Such a move will further ensure that Zimbabwe desist from formulating policies that are sound and fail to implement them for the benefit of the people.

Additionally, it should be noted that the MTP underlined the need for youths to be involved in the policy formulation initiatives. To enable this component to succeed the information drive needs to be established to promote elements of critical debating. This critical issue has failed to materialise owing to the centralisation of information and lack of zeal in engaging strategic partnerships to promote this noble idea. It is with hope therefore, that the government will position itself strategically to ensure that the set objectives of the MTP are clearly established. Finally, the fiscal policy has not been critical in ensuring that the youths and women in general are clearly empowered.

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