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"Command Economics Will Fail" - Analysts

Analysts have implored the government not to resort to “command economics” in dealing with skyrocketing prices of goods and services saying it “will not work”.

This comes as President Emmerson Mnangagwa recently said the government has had enough of diplomacy as a way of addressing the economic crisis and now is determined to “tackle this wanton abuse in the marketplace.”

Analysts believe if the government resorts to price controls, there would be chaos in the commodities supply chain.

NewsDay’s Tapfumanei Mubaiwa cites University of Zimbabwe economics lecturer Gift Mugano as saying the government should not simply blame business, but deal with its side of the equation. Mugano is quoted as saying:

Businesses are now responding as rational economic agencies to the economy. The government must look at the root cause of this predicament which is money supply.

The government cannot assure the nation that there will be price stability before we talk of arresting money supply. Government must deal with its own fair share and stop any avenue for anyone in business or any economic agent to begin now to respond to safeguard their cash flows and working capital.

Political analyst Vivid Gwede said the obtaining situation demands a political solution. Gwede said:

We don’t know the instruments that the President promises to use, but if it is another resort to command economics, it will fail.

Apart from the tremors from the geopolitical crisis in Ukraine which have made food prices to soar globally, there are domestic problems affecting the Zimbabwean economy.

These require a political solution. Anything short of a reboot of the social contract will be piecemeal and unable to resolve the root problems.

National Consumer Rights Association spokesperson Effie Ncube said price increases were a response to the collapse of the economy which Ncube attributes to Mnangagwa and his administration.

Academic Methuseli Moyo, however, said the statement by Mnangagwa should have been a mere expression of his discomfort over the increase in prices and should not be interpreted as a call for price controls.

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13 Comments

tynic 1 week ago

ndaishaya remuromo


Mvuu 1 week ago

leonard are those who want others to learn what they have not learnt themselves.....ko munoziveiko...muchadzidza zvakawanda


Putin 🇷🇺 2 weeks ago

Nyika inovakwa nevene vayo 🇿🇼🇿🇼🇿🇼🇿🇼🇿🇼🇿🇼🇿🇼🇿🇼 hallelujah God bless you all, nyika inotongwa nevene vayo 🇿🇼 muchingovukura


Da Truth 1 week ago

kuhukura nhai hameno ikoko kuno kwaka Mira bhooo tatosvika so patinoda daiwaiziva zvirikuitika waiti ziiii nekuti iiiii CCC yellow yakatora nyika Kare handiti uripo tichakuvhunza .Watch and learn.

Tete 2 weeks ago

Muzimbabwe masara kunzi command S.E.X.


Tintin 1 week ago

washaya

maHazards 2 weeks ago

comrade ED better you quit. Giving up is not a crime. How many tacktics did you try without success. It shows you have empty brains. If you can't beat them join them. CCC is your answer


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Putin 🇷🇺 2 weeks ago

It has failed and will continue to fail. Failure is not an option.


Blue 💙 2 weeks ago

Surrend, Zimbabweans you love Chamisa for real. He is the man of the moment. But i will continue preaching the gospel of the good on my party for it where my daily life is hanging on

WorldSolution 2 weeks ago

World Come now



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