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1/11 Here we go. @Jamwanda2. Tack the Thatcher approach to these cartels. Its working to this day UK & has been adopted all over the world. For gas, electricity & other critical bedrocks of the economy, Thatcher privatised & REGULATED these. here& #39;s how it works & what I& #39;d... https://twitter.com/Jamwanda2/status/1265328446135250944">https://twitter.com/Jamwanda2...
2/11 ..recommend. Take Gas/electricity, e.g. in the UK. Ofgem regulates that market bt doesn& #39;t give ANY money to the pvt players. Ofgem sets prices for power/gas taking into account the costs for the pvt players (transport, operating costs etc) PLUS a profit margin, say,
3/11. 10 or 20%. If Zim gvt opened up fuel sector this way & said bring your own fuel in with your own funds & a Zim Ofgem will regulate what you charge, you& #39;d find a lot of takers, BUT for this to work, we can& #39;t have an unstable, ever-changing currency, otherwise...
4/11 ..black market will dictate those prices for u, because these pvt players will need to get it from there since banks are dry, you see? So, here& #39;s where you think I am convoluting issues. For this sound policy to work, the monetary policy issue HAS to also be addressed...
5/11..not in the way we& #39;re doing now, having gvt supply it at a price that is not in sync with what& #39;s happening on the ground, in the streets. The value of the $ZWL can be stabilised, but only through tight, focused monetary policy, with a Central Bank that focuses on this...
6/11..& only this, without playing Godfather?Benefactor to pvt enterprise. This is where the term "holistic comes" in. We can& #39;t put in place an Zim Ofgem if the monetary policy is weak. It can work, it will work, simple! I saw this with my own eyes...
7/11 ..the few months that you & I know RBZ tried to stick to a pure Central Bank role, the rate stabilised, the economy, even stabilised but for all of 4 months! Nothing else had changed, not forex inflows or anything else! Just discipline at RBZ.
8/11 This was when pvt enterprise shld have been weaned off gvt. But our reaction to a drought, hurricane etc was to think we had no option but to print money & abandon the discipline (policy missteps), which led to chaos in other aspects of the economy.
9/11 Try it today: go back to a disciplined RBZ that does nothing but focus on it& #39;s core mandate & when rates stabilise, throw the economy open with a hybrid socialist/capitalist approach like Thatcher& #39;s, regulating critical sectors bt not funding them &, guaranteed, you will...
10/11 ...see several players step up to take up the mantle. Except now they will be backed by a stable currency and controlled by a transparent regulatory authority that says: "it costs this much to buy this overseas, this much to transport it, this much for duty/taxes...,
