Emmerson Mnangagwa, the new president of Zimbabwe, will have a hard time digging his country out of the economic hole that it fell into during the 37 years it was led by Robert Mugabe. But it can be done.
During Mr. Mugabe’s reign, all economic activity was dependent on political decisions, which enhanced the prizes of political power and the stakes in the fight for it. State-owned enterprises, capital controls, price controls, import controls, one-time mining fees and a plethora of regulations wrapped Zimbabwe in a giant ball of red tape and destroyed the economy.
Measured by real gross domestic product per capita, living standards are now only 78 percent of what they were when Mr.… Seguir leyendo »