Zimbabwe's central bank governor in no man's land

Zimbabwe's central bank governor in no man's land

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By Torby Chimhashu

ZIMBABWE'S central bank governor, Gideon Gono -- whose policies have often resonated with Western diplomats and failed to strike a chord with local politicians -- is caught in what they call 'no man's land' in the military.

There is no denying that the ebullient governor has come up a cropper on his plans to resuscitate Zimbabwe's economy.

While it is true that the first three months of his monetary policy which pushed for a holistic approach to solve the eight year-old economic recession have not yielded much, Gono somehow still holds the crucial ace towards re-invigoration of the stuttering economy.

On January 31, 2007, he deflated pressure from industry which called for the devaluation of the Zimbabwe dollar, insisting that devaluation would not bring planeloads of scarce foreign currency.

Gono's argument was that Zimbabwe's economic problems were heavily steeped in bad governance and therefore, were internal, and political in many ways.

It was imperative to shift from looking at him as the sole saviour, he said.

"As governor of the central bank, it pains me every time to see television cameras on me and media hype about my (monetary) statement. I believe we must move away from expecting too much from the governor, without doing much ourselves," Gono told a meeting of diplomats on January 31, 2007, in a separate forum.

"It is true we know what is good for us and we are committed to solving our
problems but as long as we leave it to the governor alone, it will take time. This is the time to take the bull by its horns."

While it is easy to see why Gono has so far failed top get the support he called for in his monetary policy statement, it is difficult to see why he cannot turn the tide of suspicion against the RBZ.

There was a lot of scepticism when the former CBZ boss stated that a social
contract was key to solving the deep economic problems Zimbabwe is currently going through.

The two factions of the divided opposition Movement for Democratic Change (MDC) dismissed his statement in totality. They derided Gono, whose motto of "failure is not an option" was turned into "failure is an option".

Both factions of the MDC see Gono as Zanu PF's last card in a numbers
gamesmanship seen crucial to winning the votes of a restive populace reeling from an overdose of political, economic and social failures.

On one hand, Zanu PF, wittingly or unwittingly, has made Gono's job very difficult by trashing the social contract through its brutal clampdown on political activists, labour and journalists.

It is, therefore, easy to assume that Gono is in no man's land.

Zanu PF, with its deep-seated divisions, has viewed Gono in two very contrasting ways. The faltering liberation party views Gono as an ambitious man whose closeness to President Robert Mugabe places him in a position to succeed the veteran leader.

This particular thinking is aided by Gono's recent renewed interest in fitness that
includes playing tennis, boxing and a six-kilometre jog every morning. On February 17 this year, Gono ran an ambitious 24km from his plush Borrowdale home and left motorists and pedestrians rubbing their eyes in disbelief.

One witness said: "His army of bodyguards struggled to keep pace with him."

To some of his sworn enemies in Zanu PF, this is a sign that Gono is being prepared for the ultimate job in politics.

Others view Gono as the man who can help Zanu PF recapture the hearts of
urbanites who long deserted the party.

Speculation is rife that Gono will bring forward his Monetary Policy statement
for the second time deal with the funding of the presidential and parliamentary elections which are set to be held jointly next year, and solve the impasse between the RBZ and tobacco farmers holding out for higher prices and devaluation of the dollar.

Gono has now left devaluation matters in the hands of the Ministry of Finance.

Zanu PF believes that when it suits the party, Gono can wave a magical wand and breathe life into its stuttering campaigns in a game of numbers against the ever popular MDC, boosted by public disenchantment with Mugabe's government.

Now the warring factions are prepared to support Gono in his efforts to put life in the economy because elections are beckoning.

This is against a background of pressure from the Zanu PF politburo on Mugabe to ditch Gono, a thorn in the flesh for some whose businesses are sustained by corruption.

It remains to be seen how Gono can work himself around the snares of politics that so far have failed to halt him in his relentless march towards pacifying the suffering public.
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