Blood, land and sanctions’ part 4

By Mahmood Mamdani

This is the last of a four-part series in which renowned Ugandan scholar Professor Mahmood Mamdani examines the historical causes of Zimbabwe’s crisis.

Besides drought and reform, there is a third cause of declining production: the targeted donor boycott. Zimbabwe has been the target of Western sanctions twice in the last 50 years: once after UDI in 1965 (very ‘soft’ sanctions, which did not stop the country becoming the second most industrialised in sub-Saharan Africa by the mid-1970s) and again after Zimbabwe’s entry into the Congo war in August 1998. Zimbabwe’s involvement in the war was not well received in the West. Participants in the donor conference for Zimbabwe that year were decidedly lukewarm about committing funds. Britain announced a review of arms sales to Zimbabwe and, after the conference, again disclaimed any responsibility for funding land reform.

The following year the IMF suspended lending to Zimbabwe, while the US and the UK decided to fund the labour movement, led by the ZCTU, first to oppose constitutional change and then to launch the MDC as a full-fledged opposition party. Its enemies have claimed that, by the late 1990s, the ZCTU was dependent on foreign sources for two-thirds of its income. Once ‘fast-track’ land reform began in 2000, the Western donor community shut the door on Zimbabwe.

The sanctions regime, led by the US and Britain, was elaborate, tested during the first Iraq war and then against Iran. In 2001 Jesse Helms, previously a supporter of UDI, sponsored the Zimbabwe Democracy and Economic Recovery bill (another sponsor was Hillary Clinton) and it became law in December that year. Part of the act was a formal injunction on US officials in international financial institutions to ‘oppose and vote against any extension by the respective institution of any loan, credit or guarantee to the government of Zimbabwe’. In autumn 2001 the IMF had declared Zimbabwe ‘ineligible to use the general resources of the IMF’ and removed it from the list of countries that could borrow from its Poverty and Growth Facility. In 2002, it issued a formal declaration of non-co-operation with Zimbabwe and suspended all technical assistance. The US legislation also authorised Bush to fund ‘an independent and free press and electronic media in Zimbabwe’ and to allocate six million dollars for ‘democracy and governance programmes’. This was fighting talk, Cold War vintage. The normative language of sanctions focuses less on the issues that prompted them in the first place ‘” Zimbabwe’s intervention in the Congo war and the introduction of fast-track reform ‘” than on the need for ‘good governance’. In citing the absence of this as a reason for its imposition of sanctions in 2002, the EU violated Article 98 of the Cotonou Agreement, which requires that disputes between African, Caribbean and Pacific (ACP) countries and the EU be resolved by the joint EU-ACP Council of Ministers.

Clearly, the old paradigm of sanctions ‘” isolation ‘” has given way to a more interventionist model, which combines punishment of the regime with subsidies for the opposition. So-called ‘smart’ sanctions are intended to target the government and its key supporters. In 2002, the US, Britain and the EU began freezing the assets of state officials and imposing travel bans. Only four days after the EU imposed sanctions, the US expanded the list of targeted individuals to include prominent businessmen and even church leaders, such as the pro-regime Anglican bishop, Nolbert Kunonga.

Nonetheless, sanctions mainly affect the lives of ordinary people. Gideon Gono, governor of the Reserve Bank of Zimbabwe, wrote recently that the country’s foreign exchange reserves had declined from $830 million, representing three months’ import cover in 1996, to less than one month’s cover by 2006. Total foreign payments arrears increased from $109 million at the end of 1999 to $2.5 billion at the end of 2006. Foreign direct investment had shrunk from $444.3 million in 1998 to $50 million in 2006. Donor support, even to sectors vital to popular welfare, such as health and education, was at an all-time low. Danish support for the health sector, $29.7 million in 2000, was suspended. Swedish support for education was also suspended. The US issued travel warnings, blocked food aid during the heyday of land reform and opposed Zimbabwe’s application to the Global Fund to Fight Aids ‘” the country has the fourth highest infection rate in the world. Though it was renewed in 2005, the Zimbabwe grant is meagre. Agriculture has been affected too: scale matters, but no one disputes that subsidies are vital for agriculture to be sustainable, and sanctions have made it more difficult to put a proper credit regime in place.