‘Zimbabwe, Guatemala y Venezuela among world’s worst economic performers’

5/27/03 3:08:31 AM (GMT +2) The Daily News-Business Reporter

THE payment of bribes to further business interests has increased in the last three years in Zimbabwe, which has been ranked 78th out of 80 countries in the World Economic Forum (WEF)’s 2002-2003 Global Competitiveness Report.

The southern African nation is ranked ahead of Venezuela and Guatamela, both facing severe economic crises.

Zimbabwe lagged far behind its closest neighbours Botswana and South Africa, who are ranked 24 and 53 respectively.

On a scale of one to seven, with one indicating a significant increase in bribery and seven a decline, Zimbabwe scored 2,4. It was slightly ahead of Venezuela, which scored 2,1 and Guatamela, with 2,0.

In terms of growth competitiveness, Zimbabwe was ranked 79 out of 80 in 2002, sliping from 75 in 2001.

“One of the worst performers (in economic competitiveness) remains Zimbabwe, where the economic downturn accelerated substantially in 2001 and 2002,” the WEF report said.

According to the report, Zimbabwe is ranked 76 out of 80 countries where companies had to make “undocumented extra payments or bribes” connected with the issuing of public contracts.

When deciding upon policies and contracts, government officials in Zimbabwe are said to favour well connected firms and individuals.

Zimbabwe government tenders for multi billion dollar projects have in the past five years been controversially awarded, resulting in some companies seeking the intervention of the courts to reverse the contracts.

Some contracts have been reversed, but as recently as 2001, crucial documents for a Japanese tender for the digitilastion of the country’s telephone network disappeared and have not been found.

According to the WEF report, Zimbabwe is also among the top five nations where insider trading is prevalent on the stock market.

However, allegations of insider trading have not been proved because of the absence of a legal framework to deal with such a practise.

Out of the 80 countries surveyed by the WEF, Zimbabwe is ranked 77, making it one of the economies where financial assets and wealth were not adequately protected by law.

South Africa is however ranked 21 and Botswana 24.

Since the invasion of mostly white-owned farms began in February 2000, foreign investors have questioned the sanctity of property rights in Zimbabwe, leading to most foreigners abandoning the country for its neighbours.