U.S. to Zimbabwe: No Aid Without Free Market Reforms

Publication Date: June 1992

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Thomas P. Sheehy

Research Area: Economics

Keywords: Middle East

Type: Report

Coverage: Zimbabwe

Abstract:

The U.S. should not follow the short-sighted policies of other donors. Rather, Washington should lead the opposition to Mugabe’s plan. Washington should publicly denounce Zimbabwe’s 1992 Land Acquisition Act and land resettlement program as an attack on private property. It should eliminate bilateral aid md oppose multilateral aid if Mugabe’s government proceeds with its resettlement plans. U.S. bilateral development aid to Zimbabwe is planned at $37 million far this year. If Zimbabwe proceeds with its land resettlement program, Washington should transfer its bilateral development funds from Zimbabwe to Zambia, an African country that is making progress toward a free market economy. To improve its aid policy to Africa in general, the U.S. should assist fewer African countries with development aid and give higher priority to those that score high on the Index of Economic Freedom. Doing this would ensure that American foreign aid goes only to those countries that are moving rapidly toward a free market system.