Mr Chairman, Gentlemen,
When Bill Lewis asked me about a month ago to speak tonight I was delighted for two reasons. Firstly I looked forward to the opportunity of being able to speak to fellow members and friends. I’m afraid that that hope has been dashed somewhat because a few moments ago, the Chairman turned to me and said:
“Would you like to speak now – or shall we let them go on enjoying themselves a little longer?!”
However all is not lost because the second reason for my delight at being able to speak tonight is still present. Some thirty-one years ago, in June 1967, my father, Bill Coltart, proposed the toast to the Club’s guest on that occasion, Mr Harry Oppenheimer. It is a great honour for me to be able to follow in his footsteps. Indeed I know that your invitation has given him a great deal of pleasure. I spoke to him this morning and he conveys warm greetings to you all.
Looking back over the last thirty years much has obviously changed in Zimbabwe and in the operations of the Club. There have been positive changes in the Club. For example I believe that there is a much greater spirit of tolerance in the Club. I recall that some twenty-five years ago my father stopped putting forward names for membership after a person he had proposed was black-balled for his liberal political convictions. My father was deeply annoyed and felt that only unsociable behaviour should be grounds to cause a man to be black-balled. It is gratifying to see a club which is now open to people of all races and political persuasions. Sadly however I suspect that there are also negative changes in the Club if the Club itself is a reflection of the standard of ethics prevailing in the professional and business community today. I’m aware that one of the fine traditions of the Club in the past was that it insisted on very high standards of integrity and business practice from its members. Whilst there is no doubt that our income tax laws have made more liars out of Zimbabwean businessman than golf or fishing it is nevertheless an unpalatable truth that many in business today are not committed to the same business principles and ethics which prevailed thirty years ago. Conversely it is surprising how some things have not changed in thirty years. For example Bulawayo is still on water rationing as it was thirty years ago. In that regard do you know why Harare has the most lawyers and Bulawayo the most disastrous water situation? Because Bulawayo had first choice!
But there is something else that hasn’t changed in Zimbabwe in thirty years that is until recently. Thirty years ago it seems to me that the business sector in the then Rhodesia suffered from misguided optimism. In the late 1960”s and early 1970’s Rhodesia enjoyed an economic boom and business confidence was high. I say that that optimism was misguided because the political fundamentals of the country were not in order. In other words whilst the political conditions of Rhodesia in the late 1960’s and early 1970’s were good enough to secure short term economic goals they were not secure enough to sustain long term economic goals. Is it not true that in the same way up until black Friday last November there was similar misguided optimism in business circles in Zimbabwe? I must confess to having been amazed at the optimism shown in the business sector for the last few years and to being equally amazed by the astonishment displayed by the business community when everything started to fall apart.
The reason I was amazed was because it was all too predictable and was because we have never had the best foundation for economic growth which is true and sustainable democracy. Just as the economy of Rhodesia in the 1960’s and 1970’s been doomed to failure so too our economy in the 1990’s was doomed to failure. A study of world economies shows that the world’s best economies are founded on transparent, accountable and just systems of governance. Rhodesia did not meet those basic criteria and nor does Zimbabwe. Sadly in both Rhodesia and Zimbabwe the business community felt that it could prosper in the long term by collaborating with the Government of the day and turning a blind eye to the injustices perpetrated by them.
But there is a further reason why business optimism was misguided and that relates to the change in business ethics in Zimbabwe in the last thirty years. Evasion of taxes, paying of bribes and general involvement in corruption has become common and accepted practice in business circles.
Many no longer frown upon people in businesses who do not maintain ethical standards. The business community itself seemingly feels that it can prosper in the long term and is often guilty of fuelling corruption in society. Once again any study of the strongest economies in the world shows that good economies are founded on respect for the rule of law and abhorrence of corruption. That is not to say that corruption does not thrive in other countries. I’m simply saying that in the strongest economies of the world corruption is not an accepted mode of business practice and when found is ruthlessly dealt with. Regrettably our chickens have come home to roost in this regard.
Paradoxically as we stand amidst absolute economic chaos in Zimbabwe today there is reason for hope for the first time in decades. I say this for two reasons.
Firstly, for the first time in the last thirty years we have an opportunity to construct a suitable political foundation and structure which is necessary for long term and sustainable economic growth through peaceful means. The growing clamour for change to our constitution combined with the unpopularity of the present government provide us with a chance to build structures in this country which will effectively fight corruption and create an environment where there can be transparent and accountable governance. There is also the realization in business circles, I believe, that whatever faith they had placed in the present government and our system of governance was in fact misguided. Most importantly there appears to be a growing consensus amongst NGOs, the business community, churches, and other sectors of civil society and even within government of the need for major revision of our constitution. I do not believe that this country has ever enjoyed such a wide spread consensus regarding a particular issue and in that fact alone there is great hope.
Secondly, and this is a critical factor, that the economic fundamentals of Zimbabwe have not changed in the last year. In other words the factors which realistically gave rise to optimism prior to Black Friday last year are largely still present. Zimbabwe’s rich natural resources, its productive workforce, its system of good roads, its competent professions, its good judiciary, its wonderful climate, its minerals and superb tourist attractions have not changed. In other words if we manage to get the political environment correct Zimbabwe still has its assets intact which could spur dramatic economic progress in a short space of time in future.
An analysis of what has happened in the last year shows that the main reason why our economy is floundering is because of a total loss of business confidence. It is not because oil prices have dropped or the country is in a state of war. The economy is in trouble simply because a corrupt and unaccountable government has made foolish decisions which decisions have in turn destroyed business confidence. The point is that economy can be turned around quickly if business confidence is restored.
It is in this context that I have hope. We have a window of opportunity which has not been there for many many years. But we need to realise that that window is not opened very wide and will not remain open for very long. How then do we seize this opportunity and help create a future for ourselves and our children in this country?
Many people I speak to feel totally helpless in the present situation. They feel as if the economy is running out of control and that there is very little that they can do about it. It is probably true that as individuals there is little that we can do to reverse the calamitous situation prevailing in the country at present. However as a business and professional community and certainly as members of this Club there are two important measures that can be taken to reverse the tide.
The first measure is that as members of the Bulawayo Club we have to do everything possible to encourage our members to revert to the business ethics that were prevalent thirty years ago. It is important that we encourage our members to realise that we are, in part, responsible for the economic chaos prevailing in the country. We are responsible in the sense that at the very least we have turned a blind eye to corruption and at worst we have ourselves got involved in business practices which would have been frowned upon thirty years ago. In fact many members I have no doubt engage in business
practices which would have resulted in members of this Club losing their membership thirty years ago. I do not have the time tonight to talk about how we achieve that objective within the Club but I have no doubt that it will start with the determination of a few to honour those principles.
Secondly, I believe that the time for fence sitting has passed. In 1995 I campaigned in the Bulawayo South Constituency for Washington Sansole, who in my view, is an honourable man and would have made a first class Member of Parliament. However in fighting that election we received very little support from the business community. I recall writing a letter in about 1994 to a large company in Bulawayo requesting assistance. I received a reply from its managing director, who is a member of this Club, stating that the company would not give donations as it did not get involved in any form of political activity. I found it somewhat ironic that the letterhead on which the letter was written bore the names of at least two ZANU-PF central committee members! The response from the business community generally was extremely poor and we fought that entire election on a very small budget. In Bulawayo South we lost by a very small majority and I have no doubt that if we had had adequate funding we may well have been able to win that seat. Furthermore there was also shocking apathy shown by many people. Hardly any people attended meetings which were advertised and so they had no idea of what Washington Sansole stood for or what he would attempt to achieve in parliament. In 1995 I argued that that election was possibly our last opportunity to make a start along the road to meaningful democracy through creating an effective opposition. That opportunity was lost and I hope that we do not fail to grasp this new opportunity which avails itself to us. In this regard I believe that members of this Club need to be challenged to change the practices which have prevailed in this Club for the last thirty years, namely that of not speaking out stridently regarding unjust and foolish policies of government. Whilst I have no doubt that in our quiet discussions held over dinner or at the bar in this Club members are very forthright in their views, consideration should be given to encourage members to translate those strong, but silently expressed views, into positive and effective actions. In this regard I believe it is imperative that the Club does what it can to assist the constitutional debate going on in the country and that it encourages its members to get involved in the elections which are only eighteen months away.
In saying this, my intention is not to chasten but to encourage you. However in using that word “chasten” I am reminded of one of my father’s favourite stories about the dour Presbyterian minister who used to deliver sermons that went something like this:
“There you sit you miserable sinners, you lust and fornicate, you chase after other men’s wives, you drink to excess and play sport on the Sabbath. But the day will come when you breath your last. Then you will shuffle off this mortal coil. Then you will go to the fires of Hades. Then you will burn in hell. And it is then that you will turn to your Maker and say: We didna ken, we didna ken. And it is then that the good Lord in His infinite mercy and compassion will say: “Ye ken noo”!
Perhaps many of us may say that we have the excuse that we could not anticipate what was going to happen in our country. Well we know now, “we ken noo”. The challenge is for us not to be drowned by our own pessimism. Whilst our government may be, to paraphrase Swift “in danger of dying by swallowing its own lies” now is the time for us to be positive and to act decisively. I believe that it was President Roosevelt who once said, in the context of the American economy and stock market:
“When blood is flowing in the streets, buy”
In the same way we need to seize the opportunity to bring about the fundamental changes needed in this country to secure a future for ourselves, our children and our children’s children.