Government takeover of companies in Zimbabwe to proceed

[Chirios]

http://edition.cnn.com/2011/WORLD/afric ... takeovers/

(CNN) — President Robert Mugabe said Thursday that Zimbabwe will go ahead with the takeover of foreign-owned companies, a scheme that has rattled investors, and warned Western countries to stop interfering in his country’s affairs.

“We proceed with our indigenization and empowerment policy, and programs must be worked out to ensure that our resources are managed by us, they are controlled and exploited by us, and that they benefit the majority of our people,” Mugabe said in an hourlong speech at the burial of the deputy director of the nation’s intelligence organization.

For most of the time, Mugabe, 87, was speaking off the cuff in his vernacular Shona language without reading his prepared speech.

Zimbabwe’s indigenization law, described as ruinous by Mugabe’s partners in the country’s fragile coalition, compels foreign firms to cede at least 51 percent of shareholding to black locals.

The former guerrilla leader said the process will go forward, starting with mines.

The policy has been opposed by his coalition partner and political foe, Prime Minister Morgan Tsvangirai of the Movement for Democratic Change.

The two-year-old coalition government of the resource-rich state published regulations in March giving mining companies 45 days to set out their plans for transferring ownership stakes to “indigenous” Zimbabweans.

“If our economy is controlled by outsiders, similarly the politics will be controlled by outsiders,” added Mugabe, who has been at loggerheads with the West after it imposed targeted sanctions on him and senior officials of his Zanu PF party in 2002, following reports of human rights abuses and rigged elections.

“We don’t worry ourselves about the goings-on in Europe, about the unnatural things happening there, where they turn man-to-man and woman-to-woman,” Mugabe said. “We say, well, it’s their country. If they want to call their country British Gaydom, it’s up to them. That’s not our culture. We condemn that filth. We get alarmed when these countries have the audacity to schedule us as an item to discuss in their parliament.”

He urged his supporters to “unite in opposing and condemning the sanctions” that he blames for the country’s economic freefall.

“We must demonstrate that we are ready to defend our country and sacrifice our lives. The enemy will try by all means to destroy us, but if we are united, we are strong,” he said.

Without mentioning his political rival, Tsvangirai, by name, Mugabe said “some of us” have been asking the West to keep the targeted sanctions in place.

Mugabe’s appearance Thursday was keenly watched by observers after his return at the weekend from his fourth trip to Singapore since the end of December. Officials have confirmed that he has undergone medical treatment there on previous visits.

Reports said that two weeks ago, at a meeting of Southern African leaders in neighboring Zambia, Mugabe was transported around the venue in a golf cart, looking exhausted.

But Thursday, Mugabe appeared energetic for an 87-year-old as he walked to around the gravesite unassisted.

Somebody needs to grab this old man and just bitchslap him whilst screaming: "That's Not How Economics Works!"

[K. A. Pital]

When hyperinflation basically makes money worthless, how else can you support the regime? Take over whatever is left worth anything. *laughs* Though considering Mug went to a magician (uh?) for advice on how to find oil, or something like that, nothing is not too crazy to be true in Zimbabwe.

[Korvan]

Zimbabwe’s indigenization law, described as ruinous by Mugabe’s partners in the country’s fragile coalition, compels foreign firms to cede at least 51 percent of shareholding to black locals.

Why do I get the feeling that black locals is not referring to the average Zimbabwean?

[Korto]

I actually have no philosophical problem with blacks taking land and resources off whites in Zimbabwe. It is, as far as I know, how the original whites got them off the blacks in the first place, and what goes around comes around.*
But the problem is, morally justified or no, he's doing such a bad job of it. There must have been a better way to "repatriate" assets and reward your followers without destroying the country.

And Korvan, maybe because you're not an idiot?

*And no, I wouldn't have a philosophical problem with Aboriginals taking land and assets off us whites here in Australia, before you ask. A personal problem, yes, they'll have to do it over my dead body, but I fully accept their moral right to try.

[Samuel]

I actually have no philosophical problem with blacks taking land and resources off whites in Zimbabwe. It is, as far as I know, how the original whites got them off the blacks in the first place, and what goes around comes around.*

There are economic problems:

1) The new managers tend not to be as efficient. While government organized industries can be efficient, ones organized by a kleptomatic state tend to be run... poorly.
2) Investment drops because people fear you will nationalize their companies.
3) You have short run versus long run problems- namely, people who now have the stocks because the government gave it to them realize they might be given to someone else if they aren't politically loyal. This encourages them to sell off company assets for short term gains (see Russia)

So yeah, bad plan.

[Sarevok]

To be fair the government owning 51 percent of certain foreign investment may be a good idea. When implemented properly it can offer security against corporate exploitation to a developing country. That way in an ideal world oil and mining companies would not be able to get away with their excesses so easily. Of course in reality the corruption means that proceeds from that 51 percent goes to government bigwigs.

It is still a nice idea, if only in theory.

[Iroscato]

My main bugbear is WHY IS THE OLD CUNT NOT DEAD YET? He's 87, he should have been bumped off years ago! He just won't die. He's like a fucking Terminator, except they die when their fuel cells get ripped out. Mugabe's heart shrivelled up decades ago, now it seems the old bastard is running on sheer batshit lunacy.
As you can probably tell, I don't like him. Sorry, rant over.

[Chirios]

My main bugbear is WHY IS THE OLD CUNT NOT DEAD YET? He's 87, he should have been bumped off years ago! He just won't die. He's like a fucking Terminator, except they die when their fuel cells get ripped out. Mugabe's heart shrivelled up decades ago, now it seems the old bastard is running on sheer batshit lunacy.
As you can probably tell, I don't like him. Sorry, rant over.

I hypothesise that he revives himself using the tears of starving Zimbabweans.

[Iroscato]

My main bugbear is WHY IS THE OLD CUNT NOT DEAD YET? He's 87, he should have been bumped off years ago! He just won't die. He's like a fucking Terminator, except they die when their fuel cells get ripped out. Mugabe's heart shrivelled up decades ago, now it seems the old bastard is running on sheer batshit lunacy.
As you can probably tell, I don't like him. Sorry, rant over.

I hypothesise that he revives himself using the tears of starving Zimbabweans.

It makes sense, there's plenty of that to go around.

[Phantasee]

My main bugbear is WHY IS THE OLD CUNT NOT DEAD YET? He's 87, he should have been bumped off years ago!

"Bumped off years ago"? Are you suggesting he should have been assassinated?

[Iroscato]

My main bugbear is WHY IS THE OLD CUNT NOT DEAD YET? He's 87, he should have been bumped off years ago!

"Bumped off years ago"? Are you suggesting he should have been assassinated?

Can I get in trouble if I do? Not bloody likely. He should have either been assassinated, or died of old age at least 15 years ago.

[K. A. Pital]

Hmm... while I'm sure Zimbabwe cops will not come here and ask "What is this?", the general attitude is that calling for the assassination of politicians is not cool. There's plenty of people I'd love to see dead, but I keep that to myself.