The Suicidal Economic Policies of Communist Dictators
A delegation from the International Monetary Fund are currently in Zimbabwe to decide what to do about the Country’s outstanding debt to the fund. Dictators like Robert Mugabe have a knack of running their Country’s economy into the ground by adopting economic policies which is susceptible to political expediency but anti-growth. Seychelles unfortunately was victim to the same disease.
Both Seychelles and Zimbabwe committed economic suicide when they obstinately refused to embrace the virtues of a free market economy which is characterised by Milton Friedman’s “free market, free trade and low taxes” policies. For years Seychelles steadfastly stuck to the Marxist style outdated centrally controlled economy even when the cold war ended. The results are now haunting us today.
Like the Seychelles economy a few years ago, the Zimbabwean economy is poised on the edge of an abyss. The crucial crisis stems from crucial decisions taken by President Mugabe. Although President Michel is now more inclined to ditch the anachronistic economic policies which have crippled the Seychelles economy; progress has been slow and the economic benefits derived will only be apparent several years down the road. The benefits of economic policies are not instant and immediate. Although policies can be changed instantly the result will only be felt after a full economic cycle. The cause and effect relationship is not simultaneous. Thus, the need for President Michel to change the disastrous economic policies now (and not gradually) so that the Country can reap the benefits of economic reforms a few years later. The decision to opt for gradual economic change is therefore a fallacy and should be reviewed.
