Zimbabwe: Gender and elections experts discuss 50-50 representation in politics – The Zimbabwean

“This is a ground breaking initiative that needs to be multiplied many times over,” noted the CEO of Gender Links that organised the mission with support from the African Women’s Development Fund, HIVOS and UN Women. “SADC has every possible permutation of electoral system and quotas to show what works. The answer are in our hands.”

The 2018 national elections in Zimbabwe witnessed a decline in women’s political representation at national and local level. Women’s political representation has fluctuated over the past ten years since 2008. Following the adoption of the new Constitution in 2013, the proportion of women in the national assembly increased from 14% to 32% and in the Senate from 33% to 48%, resulting in overall representation of 34% women. In the 2018 elections, this proportion reduced to 31%. Zimbabwe has a 30% proportional representation quota for women at national level which expires in 2023, raising concerns that even the limited gains made over the years may be lost. However, there is no legislated quota for women at local government level presenting a threat to women’s participation. With women occupying only 1 out of 4 political positions worldwide legislated quotas become an important tool to improve women’s representation in politics.

Gender equality is guaranteed in the country’s constitution. Zimbabwe has also committed to gender parity through regional and international instruments it is signatory to. The SADC Protocol on Gender and Development encourages member states to ensure equal and effective representation by women in decision-making in the political, public and private sectors, including the use of special measures.” On the other hand, the Sustainable Development Goals (SDGs) encourage states to “ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.”  It also calls upon states to “adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.”

The gender and elections experts will share lessons learnt from the implementation of the different electoral systems and how they work in their countries.

This meeting seeks to come up with a clear strategy for lobbying and advocacy to increase women’s political representation and participation at both the local and national level.

New Zim dollar triggers horror memories of hyper-inflation

Post published in: Featured

New Zim dollar triggers horror memories of hyper-inflation – The Zimbabwean

Zimbabwe banned the use of foreign currencies this week, demanding that businesses accept only local currency.

This has triggered fears of a return to Robert Mugabe-era inflation, which peaked at over a million percent. That was brought to a sudden end in 2013 when the country allowed trading in foreign currencies, and inflation dropped virtually overnight to under 10%. The decision to allow trade in US dollars, South African rands and Botswana pula was widely credited for stabilising the country’s shambolic economy. The collapse was primarily driven by a massive fiscal deficit and the reckless printing of money by the Reserve Bank of Zimbabwe (RBZ).

Yesterday, the so-called Real Time Gross Settlement (RTGS) dollar strengthened to 11 to the US dollar from a low of 14 earlier in the week, according to some reports. Economist Eddie Cross, one of the architects of the new financial regulations and a former Movement for Democratic Change (MDC) parliamentarian, says the new measures are aimed at reducing the RTGS dollar to around four to the US dollar. That should also bring inflation down from its current level of about 100%.

It was this spiralling inflation, and the inability of ordinary Zimbabweans to survive in a country where hard currency became the preferred legal tender, that prompted the sudden move. Most Zimbabweans struggled to lay their hands on US dollars and rands.

Several measures were announced: the formation of a monetary policy committee similar to that of the SA Reserve Bank to make decisions on interest rates; an increase in short-term lending rates from 17% to 50%; and an increase in forex for trade on the inter-bank market.

Curbing forex opportunists

One of the purposes of these measures is to reduce the massive arbitrage opportunities available to those with access to foreign currency. Because the price of fuel is controlled at Z$3.50 a litre by the state, more than 2 000 heavy duty fuel trucks enter Zimbabwe every day to transit the country to states to the north and east, using the low fuel prices to fill their tanks.

It is reckoned that 2-3 million litres of diesel is being shipped out of Zimbabwe each day because of this pricing gap.

Fuel can be purchased in Zimbabwe for the equivalent of US$0.20 a litre and sold in Botswana for the equivalent of US$1.30 a litre – an easy path to quick riches for thousands of truck owners.

“Many people were borrowing local currency at 17% so they could engage in these arbitrage opportunities, but this had the effect of driving up prices for everybody else,” says Cross. “By hiking short-term interest rates to 50%, this makes it far less attractive for arbitrage. This should result in lower inflation across the board over the next few months. I think these measures are a step in the right direction, and we should see the parallel market rates for the RTGS dollar continue to strengthen.”

In February this year finance minister Mthuli Ncube instructed the RBZ to set up an inter-bank market for forex. The reserve bank resisted the instruction until President Emmerson Mnangagwa stepped in and insisted that the bank adhere to the Short Term Stabilisation Programme that had been adopted in 2018.

Tax threshold may be raised to offset the effects

The resurgence of inflation to 100% – though far less frightening than had been the case prior to 2008 – makes it increasingly difficult for families to survive. One of the measures being considered is to raise the threshold for paying income tax from RTGS$500 to RTGS$2 000, which would compensate for the effects of inflation.

Despite the rise in inflation in recent months, Zimbabwe has accumulated forex reserves of about US$1 billion and a fiscal surplus of US$2 billion.

Companies are required to remit 55% of forex earnings to the RBZ, amounting to about US$3 billion a year. Half of these retentions will now be made available on the inter-bank market as part of the package of stabilisation measures.

The RTGS was de-linked from the US dollar in September 2018, after which the exchange rate fell from RTGS$4:US$1 to 14:1 earlier this month. The improvement this week to 11:1 is perhaps an early sign that the measures are working.

‘A plan to hoover up forex’ from business

Other Zimbabweans are not so convinced. James Chidakwa, an opposition MDC member of parliament, says there are suspicions that this is a plan by the RBZ to hoover up all the forex from businesses.

“It will all end in tears for the rest of the people,” he says. “Not so long ago Ncube was asked what we should do about traders who ask for US dollars. His response was that it was perfectly legal for them to do so because we’re in a multi-currency economy.

“We have a two-headed beast running the country. How do businesses price their goods and services let alone replenish their goods?

“Another round of price madness has effectively been promoted. As MPs we are sandbagged with these people [those who run the country’s finances]. Ncube does not know what he is doing. This also reflects badly on the president’s judgement, by hiring someone who failed to run a bank [Ncube was chief economist and vice president of the African Development Bank] to turn around a failed state’s economy.”

The MDC yesterday said the new measures amount to the reintroduction of the dreaded Zim dollar, without addressing the economic fundamentals to support the local currency.

‘Nation ambushed’

“Despite government’s promise that it would introduce a new Zimbabwe currency in the next nine months while it addresses the fundamentals, the regime today just ambushed the nation and reintroduced the Zimbabwean dollar as the only legal tender in local transactions,” said Luke Tamborinyoka, MDC deputy national spokesperson.

“This means that the multi-currency regime, which provided some modicum of decency and predictability, has been thrown out of the window in favour of the volatile local currency that is not backed by adequate gold and foreign currency reserves.”

The trust and confidence that are vital to public willingness to transact in a new currency are not present.

“It remains to be seen how the market will respond to the madness, but the knee-jerk monetary policy introduced in the dead of the night is reminiscent of the rushed decisions of this regime,” said Tamborinyoka.

“The fuel price increases announced by Mnangagwa himself in the dead of night and that caused a furore in the country’s economy are a case in point.”

What Makes A Good Book Of Business?

Ask any partner at any law firm to describe their book of business, and dollars to donuts they’ll give the same answer: a number. The number the lawyer reports will represent the amount of revenue that lawyer believes he or she is responsible for bringing into the firm. That magic “book size” is the industry standard, our shorthand for someone’s business generation success.

When headhunters reach out to lawyers, the first question they ask is, “What’s your portable book?” Generate enough revenue and you’ll make equity partner. Rake in enough revenue and you’ll be courted all over town. These are the numbers our careers rise and fall on. Revenue is the defining statistic of the private legal world.

Despite the legal industry’s obsession with revenue, the truth is revenue tells you very little about the strength of a book of business.

Not all practices are created equal, and not all books are created equal. Some practices command high rates, some low. Some practices get paid on every cent they bill, some have to expect substantial write-offs as a matter of course. Some practices collect on their invoices, others pray.

Most importantly, the amount of money a firm has to spend to get their revenue in the door varies wildly, and isn’t always simple to measure. This rabbit hole goes deep. There are countless books, CLEs, and consultants focused on the topic. But if you’re looking for the quick and dirty version, you take the gross revenue recovered as a direct result of an attorney’s business generation efforts and you subtract the labor costs, overhead, and other costs expended to produce that revenue. It sounds simple, but it’s surprisingly complicated to capture when you get into issues like calculating timekeeper cost rates, controlling for underutilized timekeepers, and fairly allocating overhead.

Another Tragedy of The Commons

I wrote a few weeks back on how law firms need to get smarter about tracking and allocating internal overhead. When firms turn a blind eye to exorbitant and anomalous uses of firm resources, partners are incentivized to rack up big expenses that benefit individuals far out of proportion to the costs the partnership bears. By ensuring partners have some financial accountability for their decisions, a firm promotes efficiency and profitability for everyone.

Smart cost tracking isn’t just crucial to keeping a firm’s costs down — it’s a necessary component of understanding the true value of a partner’s book of business.

Say you’re running a firm, and you were forced to pick one of two candidates for lateral partnership. Candidate One services a major, publicly traded client, one they’ve had a relationship with for 20 years. This client alone throws off enough work to keep that candidate, a paralegal, and three associates busy full-time. Candidate One’s book of business is a solid $1.5M a year.

Candidate Two runs a practice servicing one-off clients. They keep themselves and a paralegal busy. They’re also going to need $100,000 in marketing support to keep their book of business going, and that book of business is valued at $1M a year.

To most law firms, Candidate One is the clear winner. Their book of business is larger, they have a reliable “big firm” model client, and they’ll keep firm associates busy. They also don’t need a major capital investment to keep their book functional, unlike Candidate Two.

But let’s complicate the example with some figures. Those two associates that Candidate One needs don’t come free, nor do paralegals. If the associates cost the firm $300,000 a year in salary and overhead allocation, and the paralegal an additional $150,000, Candidate One’s book of business is actually only turning a $450K profit off their work, out of which we’ll need to pay Candidate One’s own salary and overhead. In comparison, Candidate Two is only spending $150K on a paralegal and $100K on marketing, leaving their more modest book to generate $750K in profit. Candidate Two wins the profitability fight, despite their smaller and less “impressive” book.

Firms that understand this profitability gap can go out and cherry pick high-value, underpaid partners from around town. Firms that don’t will be stuck overpaying for partners who might turn them a profit, but won’t leave much left over for the firm as a whole.

Getting Smarter

Change is hard, and I don’t expect any law firm to have an easy time shifting its constituents’ focus from a revenue model to a pure profitability model. Nor should they. The truth is that large books of business can have benefits beyond raw profit, including reputation and the fact that big books can cover a significant amount of fixed overhead expenses. So profit is part of the answer, but not the only answer.

Where I have seen firms try to make that change, I’ve often heard the counterargument that profitability models are divisive and dangerous for the partnership. They pit partners against one another in a battle of profit, dividing lawyers into alphas, betas, and don’t-need-yas. They threaten the firm’s “culture,” a trap I’ve written about before. Most of these claims are unfounded and are thrown around as a way to put the brakes on change, which lawyers notoriously loathe.

Every time I’ve seen a firm make the transition to a model that factors in profitability, it’s been for the better. My own firm made the shift several years ago, and it’s been one of the best decisions we’ve made. It’s contributed to double-digit growth in major metrics in the face of an economy where most middle-market firms are struggling to tread water. Better yet, we’ve had so many partners coming up with great, creative ideas about improving the firm’s profits, reducing its expenses, and making it a better place for everyone here. Our culture has become one that fosters innovation. Our attorneys have taken to heart the business-world mindset that’s so often lacking in Biglaw, and we’re so much stronger for it.

Nothing strengthens a sense of culture like success. Who wouldn’t want to be part of a smarter, more efficient, and wealthier business? Take the plunge, do the work, and close the book on outmoded ways of valuing our profession.


James Goodnow

James Goodnow is an attorneycommentator, and Above the Law columnist. He is a graduate of Harvard Law School and is the managing partner of NLJ 250 firm Fennemore Craig. He is the co-author of Motivating Millennials, which hit number one on Amazon in the business management new release category. As a practitioner, he and his colleagues created a tech-based plaintiffs’ practice and business model. You can connect with James on Twitter (@JamesGoodnow) or by emailing him at James@JamesGoodnow.com.

Supreme Court Will Hear DACA Appeal, Just In Time For The Election

(Photo credit: Robyn Beck/AFP/Getty Images)

Welp, I thought the Supreme Court would dodge the DACA issue until after the election. But apparently, some of the justices are feeling feisty.

The Supreme Court released some orders today, the last day of it’s term. In a surprise move, the Court agreed to hear the government’s appeal over the Deferred Action for Childhood Arrivals program. They’ll hear the case next fall, which means that they’ll probably issue a decision next year. That means [checks calendar] yep, that means DACA, one way or the other, is likely to be decided just before the national party conventions in an election year.

Fun! [Weeps softly].

Like I said, I thought they would dodge. Donald Trump tried to end the DACA program, early in his tenure. The Democrats tried to shut down the government for, like, a day. Then Chuck Schumer cried or folded or folded while crying or did whatever it is that Chuck Schumer does when he loses.

But then the courts stepped in. Federal judges prevented Trump from ending the program. As I’ve written before, DACA exists by executive order, Trump CLEARLY has the power to end the program, as long as he gives a colorable reason for doing so. Judges have called the administration’s decision to end the program “virtually unexplained.” The government has had an appeal to those ruling sitting in front of the Supreme Court for a while now.

The easiest move for the Court would have been to ignore the case until after the election. Either Trump wins and they’ll have to get into it. Or Trump loses and the issue is moot.

But, clearly, something changed. You only need four votes on the Supreme Court to grant cert, and we don’t ever know who the votes are. I feel confident that Chief Justice John Roberts was not one of the four. But beyond that, I really don’t know. Maybe the other four conservative justices are so red-assed about Roberts’s decision in the Census case yesterday, that they want to stick it to the chief. Maybe the progressives are hopeful that the chief now sees that the Trump administration lies and is willing to put a stop to it? Maybe this is the long awaited conservative attack against the nationwide injunction? Maybe four of them think that this is a good election issue, or one side or the other: Trump’s cruelty towards people who have lived a good life after they were brought here through no fault of their own tends to rile up Trump’s sick base, AND the resistance against him. Maybe four justices just got sick of being scared of the issue.

We can all come up with theories about why the Court is taking the case, but the fact is that they are taking the case. Hold onto your butts.

Supreme Court Will Hear ‘Dreamers’ Case [New York Times]


Elie Mystal is the Executive Editor of Above the Law and a contributor at The Nation. He can be reached @ElieNYC on Twitter, or at elie@abovethelaw.com. He will resist.

Morning Docket: 06.28.19

* Apparently greenlighting partisan gerrymandering and severely undermining future protections against openly racist redistricting wasn’t enough. Conservatives are very angry that John Roberts questioned the Trump administration’s rationale for the census simply because there are actual documents that say, “we’re lying about this rationale.” [National Law Journal]

* How the legal academy could learn from the Harry Potter books. Mostly cheaper tuition. [ABA Journal]

* The firms that did the most winning at the Supreme Court this go around. [Law360]

* This case was a real s**t show. [Legal Cheek]

* NY judge says prominent attorney is ruining his reputation in battle with Justin Theroux over roof plots. [NY Daily News]

* Amidst everything else, Paul Manafort pleaded not guilty yesterday. [Courthouse News Service]

* The disturbing history of that statute Castro and Beto fought over. [Washington Post]

Is Zimbabwe’s new leader stifling judicial freedom? – The Zimbabwean

When Zimbabwe’s president unveiled Kumbirai Hodzi as the country’s new Prosecutor General (PG) in January, it came as a surprise to many. This was because Hodzi had placed a distant sixth in the mandatory public interviews to choose a head of public prosecutions two months previously. This vacancy had arisen following the forced resignation of the previous head after only eight months in office.

But to those who have followed Zimbabwe’s recent judicial hiring, Hodzi’s appointment – which is now the subject of a court challenge – wasn’t completely unexpected, as it followed a predictable pattern in which those who score the highest marks in public interviews are simply disqualified from the running.

President Emmerson Mnangagwa has so far appointed eight judges, including a member of the ruling ZANU-PF party, from among a pool of borderline lawyers, including candidates that openly admitted they had never been in a court of law in their professional lives, or could not tell the difference between elementary court procedures such as a court application and a court action.

The same also applied when he appointed two judges to the Supreme Court in May last year. The candidates that came top in the public interviews were ignored as the promotions went to those that had performed dismally. For example, Justice Francis Bere, one of the judges promoted to the Supreme Court, had nearly half (43 percent) of his judgments set aside after being found to be unsound during Supreme Court appeal hearings. In comparison, one of the losers, Justice Nicholas Mathonsi, had handed down a record 333 judgments in three years, of which only 22 were appealed against with 21 upheld by the Supreme Court as correct while the remaining one was overturned on account of the judge’s harshness on a litigant whose papers were not in order.

A new Constitution, which came into effect in 2013, requires the Judicial Services Commission (JSC) to interview candidates for all senior judicial appointments publicly. The Constitution says the president can only take his pick from among the top three candidates, but in all these cases, Mnangagwa went out of his way to appoint those that had performed poorly.

Zimbabwe’s new leader, who is proving no better than Robert Mugabe, who he replaced, is not leaving anything to chance as he consolidates his stranglehold on power. He is seen to be packing the bench and other key judicial positions with his cronies while sidelining and or simply moving independent-minded judicial officers out of the way.

It is developments like these that resulted in the country’s lawyers staging a protest earlier this year to demand that the country returns to the rule of law. The lawyers strongly feel that judges only come to court to read decisions made elsewhere.

In mid-May prosecutors also went on strike protesting against what they see as an attack on their independence by the president, who has since set up a parallel special prosecution unit in his office.

Mnangagwa is a long-time former justice minister and most judicial officers were his subordinates until he became president in 2017. Aside from use of violence and brute force, there are more polished methods of controlling a country, and micromanaging the judiciary and all legal processes is certainly one of them. This is what Mnangagwa’s opponents see him doing.

The former PG, Ray Goba, resigned in August last year after a slew of allegations were raised against him, primarily his alleged failure to prosecute “high profile graft cases”. In reality, these cases exclusively involve members of a faction of the ruling ZANU-PF party that remained steadfastly loyal to Mugabe after he was toppled in the November 2007 coup.

For resisting playing a role in this persecution-by-prosecution campaign, Goba was suspended and an investigation into his continued suitability for the post was instituted. This resulted in him resigning.

Both Mnangagwa and current Justice Minister Ziyambi Ziyambi, along with several other top officials, had been expelled from both the government and the ruling ZANU-PF party by the time Mugabe was toppled and are seen to have unfinished business with those that sided with Mugabe in his last days.

“He [Goba] refused to be used to settle scores with those that fell together with Mugabe, so for that, he was targeted and he saw that he could not stand, so he resigned,” a former judge told TRT World.

During the public interviews, Hodzi – who was Acting Prosecutor General – surprised the interviewing panel when he revealed that the National Prosecuting Authority (NPA), which is already fully packed with officers seconded from the armytook orders from the executive on who to prosecute.

The setting up of a special anti-corruption unit in the president’s office has raised eyebrows within the legal fraternity.

Alex Magaisa, a UK-based law lecturer, says the move by Mnangagwa to set up an anti-crime department in his office is a clear violation of the constitution as it usurps the duties of the Zimbabwe Anti-Corruption Commission (ZACC) and the NPA.

“Having diagnosed the problem [of corruption], it is important for Mnangagwa to find the correct solution within the confines of the law. That solution must, therefore, be based on a solid legal foundation. It must be consistent with constitutionalism and the rule of law. It must not undermine the constitution and established constitutional principles and values,” Magaisa said.

He added that in the absence of specific legal authority, “it can be concluded that the special unit has been established by presidential decree, itself a hallmark of arbitrary rule”.

Veritas, a legal and legislative watchdog, also concluded that prosecutors were right in refusing to take orders from the unit in Mnangagwa’s office.

“It seems that the prosecutors are protesting against instructions being given to them by a Special Anti-Corruption Unit, not by the Prosecutor-General and his deputies in the NPA,” Veritas pointed in its weekly legal commentary.

“So if the Unit is a separate body independent of the NPA, then prosecutors can legitimately object to being given instructions by it ‒ indeed they ought to do so because the Constitution says they should take instructions only from the Prosecutor-General,” it added.

Mnangagwa, who for a long time headed a faction that was seen as preparing to take over power from an aged Mugabe, used his position as the country’s justice minister to fill up the judiciary with individuals loyal to him, even it meant they were not the best candidates.

“He personally interviewed most of the judges when he was still justice minister before recommending them to Mugabe for appointment to the bench, so most of them are very loyal to him since he personally invited them to the bench,” a senior lawyer that politely turned down one such invitation told TRT World. 

“Suggestions that Mnangagwa is a ‘legally illiterate lawyer’ are wrong. He is a very astute lawyer, who chooses to do the wrong things when it best suits him,” added the lawyer who requested anonymity for fear of victimisation.

Mnangagwa himself has in the past boasted about how he was the legal brain behind Mugabe’s 2008 comeback after an electoral defeat at the hands of the late opposition leader Morgan Tsvangirai.

A few days before the new constitution came into effect in 2013, Mugabe – on the advice of Mnangagwa – hurriedly appointed six judges to the High Court and another one to the Supreme Court before the clause that require a cumbersome appointment process took effect. A few other loyalists were smuggled on to the bench in 2015 when Mugabe appointed nine judges under the new arrangement that requires the JSC to conduct public interviews for all senior judicial posts.

The appointment of a new Chief Justice in 2017 caused a huge legal uproarafter Mnangagwa unsuccessfully tried to push a candidate of his own choice, current Judge President (head of the High Court) George Chiweshe, to the pinnacle of the country’s judiciary.

The war veteran Judge President (Chiweshe) is a former military judge who continued to get promotions in the army even when he was serving in the judiciary. During the liberation war, in which most relationships were cemented, Chiweshe – under nom de guerre ’Yasser Arafat’ – deputised now Vice President Constantino Chiwenga, the general who led the coup that toppled Mugabe. The controversial judge presided over the 2008 elections fiasco, when he withheld presidential election results for a record five weeks after Mugabe had lost, until Mnangagwa had worked out a legal comeback route for the embattled ruler.

Chiweshe is also one of the two judges that passed judgements which served to sanitise the coup that toppled Mugabe. The other one was Justice Charles Hungwe, also a war veteran, who was the founding chairperson of the Zimbabwe National Liberation War Veterans Association in 1990.

After failing to get Chiweshe appointed Chief Justice, an unhappy Mnangagwa successfully pushed for a constitutional amendment to give the president powers to appoint a person of his choice to head the judiciary. The resulting amendment is being challenged before the Constitutional Court.

The amendment gives him power to handpick the Chief Justice, the Deputy Chief Justice and the Judge President when the current Chief Justice Luke Malaba reaches the fixed retirement age of 70 in 2021. This will be just in time for the 2023 elections.

Mnangagwa and his ZANU-PF appear to have carefully studied Justice Enjoined, a report published by the Robert F. Kennedy Memorial Centre for Human Rights in 1992 on the sorry state of the judiciary in Kenya, and adopted – warts and all – the strategy of former president Daniel arap Moi and his KANU party in their final years in power. It was a strategy that gave Kenya a travesty of a judiciary, which existed primarily to serve the political and economic interests of the executive and the ruling elite.

A predatory elite has brought Zimbabwe to its knees

Post published in: Featured

A predatory elite has brought Zimbabwe to its knees – The Zimbabwean

A woman holds Zimbabwe dollar notes and US dollars in Harare, Zimbabwe on 24 June 2019. (Photo: EPA-EFE / Aaron Ufumeli)

If the Reserve Bank of Zimbabwe was a ship it would be the Titanic, sailing with the patronage of a well-heeled elite with privileged access to the lifeboats towards a deadly iceberg.

The bank’s latest policy move – the return of the Zimbabwe dollar and the banning of the use of foreign currencies – amounts to re-arranging the deckchairs after the iceberg has opened up a wide gash in the ship’s hull.

Monetary loyalty – by force

Like the Titanic, the Reserve Bank is not unsinkable, whatever its political masters like to believe. Now they decree that Zimbabweans shall have but one currency: the reborn Zimbabwe dollar. Thou shalt not pay tribute to foreign monetary systems or at least don’t get caught. The US dollar, the South African rand and the euro are no longer legal tenders in Zimbabwe.

Anyone caught trading the born-again Zimbabwe dollar with foreign currencies will face the full weight of the law, the government says. Zimbabwe’s long-lost national money will become the sole legal tender again by force.

No belief in born-again dollar

There is a difficulty here. People have no confidence in the born-again money. In February, Finance Minister Mthuli Ncube launched the Real-Time Gross Settlement (RTGS) dollar, a surrogate currency based on electronic transfers to the Reserve Bank and its bond notes, both tied to an official exchange rate with the US dollar.

Last week the local dollars were trading for around half the official exchange rate.

But within days a parallel market emerged, selling the RTGS dollars at a deep discount to US dollars. Last week the official exchange rate was US$1=RTGS$6.2, but the local dollars were trading for around half that on the local market.

New dollars for old problems

What problems are the new dollars meant to solve? First, inflation, which is currently running at over 80%, its highest level for a decade; second, lack of control over interest rates and money supply; third, the lack of physical currency on the market.

This sounds confusing as in 2009 the finance minister, Patrick Chinamasa, announced that the use of the Zimbabwe dollar would be suspended as means to cure hyper-inflation, then running at 500 billion%. Chinamasa pronounced that the US dollar, the South African rand and some other convertible currencies would be legal tender in Zimbabwe.

Back to Biti’s basics

Then, under a new finance minister, Tendai Biti, now a luminary in the opposition Movement for Democratic Change (MDC), a new power-sharing government stabilised the economy.

But a new problem arose, the shortage of US dollars in the country. Followed by all the financial and commercial rigidities that dollarisation imposes on a small economy. In the short-term it helped the coalition – between the MDC and veteran ruling party Zanu-PF – establish a modicum of stability and begin to redress some of the structural problems in Zimbabwe’s economy and politics.

However, the short-term gains were quickly squandered, and with Zanu-PF’s victory in the 2013 elections, it reverted to type with massive opaque payments to the security services and ruling party functionaries and sweetheart deals for foreign mining companies willing to partner with local politicians.

Missing revenues a key failure

Hundreds of millions more were lost to the treasury. President Robert Mugabe admitted some US$15-billion in diamond revenues were unaccounted for. The deadly economic and financial crisis facing the country is government-made. But the government is using the wrong tools to fix it.

The deadly economic and financial crisis facing the country is government-made. But the government is using the wrong tools to fix it.

All the signs of implosion are there. A debilitating economic crisis, shortages of food, medicines, money, fuel, daily electricity blackouts lasting 20 hours, rocketing inflation and a crash in purchasing power.

Once the pride of Africa, Zimbabwe’s public education service is in tatters. A teacher now earns US$35 a month. Unconcerned, the political elite send their children to private schools overseas.

Corruption and bad policy = freefall

At the heart of the crisis is an economic meltdown triggered by politics. Zimbabwe’s economy ceased to be competitive many years back. Corruption and bad decisions are to blame.

  • These include: an unplanned war in the Democratic Republic of Congo, an unbudgeted splurge on war veterans (to compensate for grand looting of their compensation fund by ruling-party bigwigs) and much-needed but badly implemented land reform.

Missed chance for land reform

Land reform was chaotic and violent. It was also corrupt, with ruling party leaders grabbing multiple farms for themselves and their families. Agricultural production, a key driver of the country’s success, plummeted, as did manufacturing. Businesses fled or shut down in response to laws aimed at benefiting the ruling elite.

Predators at the wheel

The trouble with Zimbabwe is a predatory elite that prioritises personal accumulation over public interest and service. Comprised of top ruling party officials, their relatives and friends, this elite has a vested interest in the fuel economy. It controls and is the primary beneficiary of the minerals sector and the retailing businesses.

The same elite diverts public assets for private use, leaving little for services such as education, hospital supplies and medicines. It has manipulated the currency crisis to make money out of a system of arbitrage. It is accountable to no one, relying on coercion to protect its interests.

Skewed priorities

Ask the elite what the country’s problem is: “Western sanctions”, it answers. True, Western sanctions may deter foreign companies from Zimbabwe, but the plunder of public resources has nothing to do with sanctions.

The elite looks oblivious to the suffering of the people as it imports luxury vehicles, hires jets for presidential trips, spending millions on lobbying agencies in the US, sending its own members overseas for treatment while local hospitals lack the essentials.

Bottom line: This economic crisis is politically manufactured. It can’t be fixed by financial engineering and the return of a currency in which everyone lost faith. BM

Zimbabwe Says Dehorning Rhinos Paying Off

Post published in: Business

The Biglaw Firm That Takes The Cake In Project Finance

Why Law Firms Are Moving to the Cloud

Why Law Firms Are Moving to the Cloud

Cloud-based practice management software can help meet the growing expectations of clients, staff, and an increasingly competitive legal marketplace. Download the guide here to learn how.

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In Unique Partnership, Two Law Schools and A Private Company Collaborate on Tool to Reduce Evictions | LawSites

A unique collaboration between two law schools and a private company has produced a tool designed to help low-income tenants avoid eviction and seek redress for unsafe living conditions.

The new tool, being unveiled today, is called Hello Landlord, and is designed to help tenants more effectively communicate with their landlords about issues that can lead to eviction.

It was developed largely by law students as part of a semester-long collaboration among the LawX Legal Design Lab at Brigham Young University’s J. Reuben Clark Law School, the Innovation for Justice program at the University of Arizona James E. Rogers College of Law, and SixFifty, the tech subsidiary of the law firm Wilson Sonsini.

I have written several posts about BYU’s LawX, a program in which law students use design thinking to develop solutions to problems in access to justice. Last year, LawX released its first projectSoloSuit.

For the 2018-2019 academic year, as I reported here last August, LawX joined forces with Arizona’s newly launched Innovation for Justice program to explore ways to reduce evictions in their home states. Along the way, they also partnered with SixFifty, which is directed by Kimball D. Parker, who also directs the LawX program.

Yesterday, I spoke with Parker and Stacy Butler, who runs the Arizona program, to learn about what they developed.

Over the course of the semester, the students observed more than 220 eviction court proceedings and spoke with dozens of stakeholders, including judges, landlords, tenants, social services providers, attorneys and journalists.

By the time a tenant is served with an eviction notice, they concluded, the eviction process in both Arizona and Utah is too rapid and rigid to afford an opportunity to stabilize the rental housing at stake.

For that reason, they decided to focus on building a tool that would help tenants avoid court in the first place by helping them to better communicate with their landlords.

The tool they developed, Hello Landlord, is intended to help tenants with two types of problems — threat of eviction due to inability to pay rent and conditions in apartments requiring repairs or affecting habitability.

In either case, Hello Landlord leads the tenant through a series of guided questions and then generates a letter to the landlord that is designed to clearly explain the tenant’s situation and propose a solution.

The tool has both English- and Spanish-language versions, but the ultimate letter is always generated in English. The letter can be produced in either of two formats, Microsoft Word or PDF.

Butler and Parker say they and the students have interviewed a number of landlords in the process of creating this and found that 90 percent say they would be willing to work with a tenant to resolve a matter if they received a similar letter.

“We found that most landlords don’t want to evict tenants and are receptive to working with those who proactively reach out,” said Parker.

Although designed by students in Utah and Arizona, the tool can be used by tenants in any jurisdiction, Butler said. She noted that the application also includes a library of resources to help tenants understand their rights and the eviction process.

One challenge with a tool such as this is making it known to the tenants for whom it is designed. Parker and Butler say they plan a robust public relations campaign to help make tenants aware of it. They are also working with a number of social aid organizations, legal organizations and courts to help get the word out.

The application will be owned by SixFifty, which is committed to keeping it free forever, Parker told me. It was built on the same platform that SixFifty used to create its recently launched SixFifty Privacy, which I wrote about here.

Bottom Line

Hello Landlord is a simple tool with a specific purpose — help tenants create a letter to their landlords that could open a door to better communications and perhaps keep both parties from having to go through the courthouse door.

The challenge for Hello Landlord will be to reach the tenants who could use it, and also to reach them before their problem ends up in court. And, of course, even if a tenant finds the application and creates a letter, there is no guarantee it will achieve results.

That said, the tool appears to have the potential to keep at least some landlord-tenant disputes out of court. In and of itself, that is a laudable achievement.

It is also laudable that these two law schools are developing courses that encourage students to focus on access-to-justice issues and develop design-learning skills. This is training that benefits the students and that benefits the communities in which they live and will someday practice.

SixFifty also deserves recognition for contributing the money and resources to develop, host and support this product.

I asked Parker and Butler if the two law schools would be working together next year on another project. They will not, but both said they hoped to work together again at some point in the future.