ZIMBABWE: AMBITIOUS IMF PROGRAMME RISKS UNDERMINING POLITICAL STABILITY

   Mon, 03 June 2019

The government has agreed an ambitious staff-monitored programme with the IMF in a first step to clear arrears and secure new financing by the end of the year. However, even the Fund is sceptical on the programme’s success as it entails painful austerity measures, public payroll cuts, subsidy removal, and currency reform, without a realistic cushion to absorb subsequent socio-economic shock. The envisaged economic restructuring will not only trigger fresh civil unrest, but also undermine the system of patronage that assures Zimbabwe’s political stability.

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