A company or individual who finds itself/himself in an untenable financial position, has the option of declaring itself/himself insolvent. This is of course, unless creditors have already applied for a court order enforcing liquidation/sequestration.
A preliminary step, for companies, is often the appointment of a court-appointed Judicial Manager, who attempts to steer the company back to solvency, often involving extreme cost-cutting and retrenchments. I am not sure what the success rate of Judicial Management is, but I believe it is very low.
If ever there was a country in need similar relief, then surely it is poor Zimbabwe Ltd. If only some mechanism existed for a country, and it’s people, to be rescued from self-destruction?
Why couldn’t the United Nations find the financial and political mismanagement of Zimbabwe to be a “crime against humanity”, which it is, and then in terms of new legislation, take temporary control of the country for a fixed period of time, until it is back on it’s feet? What good is food, or any other aid, when despots like Mugabe merely use these hand-outs as political tools? Surely a time comes, when the International Community should stand up as one, and say, “Enough is enough, the people need to be rescued.”
Here is how I would impose International Judicial Management in Zimbabwe.
- Dissolve Parliament in terms of an International law. Forbid all Political Activity until the country is rebuilt.
- Deploy peacekeeping forces to replace the Defence Force and Police Force , who are just Political puppets anyway.
- Scrap the local currency and declare the US Dollar, or Euro, or whatever, to be the official local currency, from a prescribed, future date.
- Ascertain the exact financial position of the country and convert the country’s foreign reserves into hard currency for distribution to the commercial banks in exchange for all returned Zimbabwe Dollars, which will be declared worthless (which they already are.)
- Grant an emergency “Relief and Re-construction” loan, to fund reconstruction of the shattered infrastructure.
- Immediately commence extensive Public Works to re-establish electricity, water, sanitation and roads. This will provide employment (and income) to thousands of Zimbabweans and restore basic services to the country.
- Provide humanitarian food and medical aid to the vulnerable.
- Restore land ownership to those with valid title deeds, and encourage these absentee owners to return and rebuild with World Bank loans, and employ these “war-veterans” who have, through no fault of their own, let this productive land go to rack and ruin.
- Encourage the International Business Community, with World Bank incentives, to invest in Zimbabwe, thus providing employment, currency and food to the people.
- Negotiate a strong new Constitution, with the people, that will protect property and individual rights, and prevent this disaster ever happening again.
- Schedule elections for a future date, when certain, prescribed targets have been met.
- Try Mugabe and his henchmen at the World Court for crimes against humanity.
There is hope, but how are we going to make it come to pass?