The Republic of Zimbabwe was formed on April 18, 1980 upon gaining independence from Great Britain (Cain 2015). Zimbabwe is a unitary republic, with the president serving as the head of state. The president is elected to a five year term, and has a two term limit. However, since its inception Zimbabwe has functioned as a single-party state under President Robert Mugabe and Zimbabwe African-Patriotic Front(ZANU-PF) party until the Movement for Democratic Change(MDC) won the election in 2008. As a result, a coalition government was formed and a flimsy power-sharing deal was achieved between the two parties. However, ZANU-PF continues to dominate Zimbabwean politics, increasing its seats in the National Assembly and the MDC boycotted the elections of 2015.
Money plays a central role in Zimbabwe’s political system. The ruling government is closely involved in the nation’s economic institutions and uses money to retain its power. The key actors in the link between money and politics, are President Robert Mugabe, the ruling political party ZANU-PF, and supporters of the political administration including the military and police.
Role of Money in Politics
Money plays a significant role in Zimbabwean politics. Politicians of the ruling party engage in grand corruption via personal enrichment, rent-seeking, and bribery and implement corruption voting to stay in power (Chêne 2015). According to Transparency International’s 2014 Corruption Perceptions Index, Zimbabwe has a score of 21, ranking as the 156th most corrupt country out of the 175 nations examined (Transparency International 2016). This score, classifies Zimbabwe as a high-corruption country.
Money funds ZANU-PF’s strong political patronage system(Chêne 2015). Politicians use state resources to maintain their patronage networks as well as their political seats, through rewarding loyal figures and deterring political opponents. Zimbabwe scores 2.5 on a 1-7 scale of favoritism in government decisions thus quantifying the extent of political patronage. ZANU-PF’s control of state resources and public assets, enables the party to bribe and control political supporters, as well as marginalize political opponents.
Money allows the ruling party to win elections such as presidential and parliamentary elections each term due to ZANU-PF’s command of Zimbabwe’s security forces, particularly the military, police, and central intelligence. Security forces are often used to stifle political opponents, as seen in the 2008 and 2013 elections when MDC supporters were targeted and harassed. The Zimbabwe Electoral Commission which oversees elections is also a partisan group whose support lies with ZANU-PF. The strong patronage system is thus one of the primary ways in which money plays a role in Zimbabwean politics.
Furthermore, politicians in Zimbabwe are involved in grand corruption and rent-seeking behavior(Baker 2014). Money in politics is used as a means of personal enrichment for Zimbabwean politicians especially the party elite. There have been numerous documented cases of the use of state/public resources for personal enrichment. These cases include the embezzlement of the War Victims Compensation Fund, the Diamond Scandals, and the Kondzi Estate Looting (ACT Southern Africa 2013).
Politicians also leverage political connections for personal enrichment. For example, the state owned Posts and Telecommunication Corporation(PTC) is headed by top ZANU-PF officials (Baker, 2014). The government authorized the PTC to have a monopoly over Zimbabwean telecommunications until 1996. The PTC could only provide landline service and had a 10 year waiting list for landline installation . Investors wanting to introduce mobile phones were deterred due to the PTC monopoly and President Mugabe banned mobile phones in order to prevent competition.
How Does Money Enter Politics
Zimbabwe’s economic sector is heavily politicized, as the government oversees key sectors of the economy such as land management, the allocation and extraction of natural resources (Chêne 2015). The government also controls critical ministries and state resources. Money enters politics through both state resources and the central bank, Reserve Bank of Zimbabwe.
The government’s control over natural resources comprises its primary monetary source, particularly in the land and mining sectors. The allotment of land and revenue from mining are key to sustaining the patronage system. For example, 40% of the farms confiscated from white landowners in 2000 is owned by 2,200 top government officials. Revenues from mining fund politician enrichment, as large amounts of revenue fail to be reported. For example in 2011, $300 million of diamond revenue was unaccounted for.
Money also enters the hands of politicians through the misappropriation of public funds. For example, in 1995 ZANU-PF senior officials were caught stealing $12 million from the National Housing Fund in order to fund their own real estate purchases(Gilpin 2008). The politicians involved in this embezzlement case concealed withdrawals from the housing fund by labeling them as loans.
The role of money in the political system has been enabled by lack of transparency over the national budget and the government’s financial activities. Citizens lack the information needed and thus cannot hold the government accountable for mismanagement of public money.
Consequences
The role of money in Zimbabwean has had devastating consequences for both Zimbabwe’s economic development as well as the integrity of its political institutions. Political corruption has also meant interference with the government’s ability to provide much needed goods and services for Zimbabwean citizens, as government funds are diverted to fund grand corruption.
Furthermore, the role of money in politics in Zimbabwe has made the cost of doing business high and deterred investment, thus hampering economic growth(Cain 2015). The case of the PTC monopoly exemplifies the struggles of doing business in Zimbabwe, as other telecommunication companies were unable to invest in mobile phones services. High tax rates also deter economic development, as the embezzlement of public funds and high government spending makes high taxes for businesses a necessity. The government’s high influence over the nation’s banking institutions helped lead to the hyperinflation which rendered Zimbabwe’s currency worthless. The devastation of the economy and the currency was largely due to unrestrained government spending and harmful policy decisions including price control and fixed exchange rates. Inflation soared to an annual rate of 100,000% between 2006 to 2008 making it the highest hyperinflation rate in the world at the time(Cain 2015). The high degree of government intervention in the economic sector makes unchecked political corruption especially harmful to the Zimbabwean economy. The role of money in politics enabled as well as contributed to the significant budget deficit and irresponsible government spending.
Additionally, the lack of political accountability also diminished the confidence of potential business investors and also enabled substantial embezzlement of government funds and misuse of resources, further devastating the economy.
Furthermore, political and economic policy reform is rendered difficult due to the desire of the political elite to maintain the status quo. Politicians have access to money and power which enables their maintenance of the status quo, regardless of the implications for average citizens(Chêne 2015). Money in politics has enabled Zimbabwe to become a single-party nation and prevents the judicial system from holding politicians accountable. Money has compromised Zimbabwe’s democratic values and the legitimacy of its political system.
The extensive patronage system has also led to increased government spending on politically beneficial sectors such as the military and the public sector. The money used to bribe patrons and supporters has come from ‘quasi-fiscal activities’, in which the central bank is used to finance subsidies, reimburse exporters for exchange rate losses, and underwrite the losses of government owned corporations and entities(Gilpin 2008). The International Monetary Fund(IMF) has suggested that the Reserve Bank of Zimbabwe must divert attention to the private sector and cease involvement in quasi-fiscal activities in order to aid economic recovery (Cain 2015).
Another consequence of money in Zimbabwean politics, is the subsequent lack of investment in other sectors critical for the population such as education, health, and infrastructure (Chêne 2015). The misallocation of funds and resources means that the delivery of goods and services is interrupted which has harmful real life implications for the population, who are in dire need of such resources.
Limiting the effect of money and politics
Efforts to limit the effect of money and politics have primarily centered around investigative commissions and auditing powers such as the Zimbabwe Anti-Corruption Commission and the National Prosecuting Authority, both formed in 2005 (Chêne 2015). However, these bodies often fall under political influence and lack the power to enforce reform measures. There are also legislations in place aimed to limit the effect of money on politics however, such as the Prevention of Corruption Ac(1983), Anti-Corruption Commission Act(2004), and the Public Finance Management Act(2010) . However these legislations are generally ineffective and rarely enforced.
Judiciary institutions are also compromised as its members are also a part of the patronage network. For example, the government has installed its supporters in the Supreme Court. The international community due to its removal from Zimbabwean politics has had more success in trying to limit the effect of money in politics. The international community has instilled measures such as implementing sanctions, and targeting individuals by freezing assets and enforcing travel bans.
Policy Recommendations
Specific policies must be instituted and observed in order to limit the effect of money in politics. Due to the nature of money in politics, transparency must become required of politicians. The assets of politicians must be declared, before they take office as well as during their time in office in order to prevent personal enrichment through corrupt means. The assets of the supporters of politicians such as military and police members should also be disclosed. Politicians involved in previous corruption scandals must be expelled from office and tried in court. This will help in increasing accountability and dissolving the current patronage network under President Mugabe. Stricter punishment and heavy monitoring are absolutely crucial for limiting the effect of money in Zimbabwean politics. The legal repercussions for engaging in corruption should become stricter, and monitoring agencies should be established.
Limiting government interference in economic institutions and relinquishing control of state resources will remove the majority of the money in politics. The economy must be completely opened up to the market. Businesses should be given contracts based on investment as opposed to connection. There must be strict regulation of the state and its economic institutions.
Also, elections must be monitored, preferably by an international institution, in order to ensure free and fair elections. Freedom of speech must be protected so that information about money in politics can be received by citizens who can vote accordingly. Public shame and media exposure can be used as tools to deter politicians from engaging in corruption.
Overall, corruption is a significant issue in Zimbabwe due to the role that money plays in politics. Money and politics in Zimbabwe are inextricably linked, and the lines between the two are blurred as a result. The negative affects of money in politics can be seen in Zimbabwe, as economic and political development are undermined by the movement of money in politics.