Zimbabwe Democracy and Economic Recovery Act Of 2001 was passed and ratified by the United States of America Congress and allegedly meant To provide for a transition to democracy and to promote economic recovery in Zimbabwe.

The Zimbabwe Democracy and Economic Recovery Act (S. 494) imposed economic sanctions on Zimbabwe, allegedly to provide for a transition to democracy and to promote economic recovery. Zimbabwe Democracy and Economic Recovery Act Of 2001

The government of Zimbabwe under Robert Mugabe claimed that the sanctions were behind the economic problems in Zimbabwe.Emmerson Mnangagwa Mugabe's successor also made the same clarion call on sanctions and used the mantra Zimbabwe is open for business in a bid to cultivate Zimbabwe's re-engagement with the West. However, Todd Moss of the Washington-based Center for Global Development dismissed claims that Zimbabwe’s government was opening up the climate for investment, and that sanctions are hurting the country.[1]

Contents

Background

ZIDERA was passed by Senate with 91% (396 votes) of Congress voting in favor of the bill. Of the 396 votes, 194 were Democrats, 200 were Republicans, and 2 were Independent. 3% (11 votes) of Congress voted against ZDERA: 2 Democrats, 8 Republicans, and 1 Independent. 6% (26 votes) did not vote, 15 Democrats and 11 Republicans.[2]

ZIDERA's policy was allegedly meant to "support the people of Zimbabwe in their struggle to attain peaceful, democratic change, achieve broad-based and equitable economic growth, and restore the rule of law."[3] This policy was supported by the following findings made by the U.S. Congress:

Reasons for its enactment

  1. The Government of Zimbabwe was unable to participate programs created by the International Bank for Reconstruction and Development and International Monetary Fund Program (IMF) to assist in the transformation and resuscitation of Zimbabwe's economy. Economic mismanagement, undemocratic practices, and the deployment of troops to the Democratic Republic of the Congo" by the Zimbabwean Government.[4]

Support

ZDERA proposed two sectors of financial support for the Zimbabwean economy under the imposed sanctions.

  1. Bilateral debt relief: the Secretary of the Treasury would conduct a review of the ability of "restructuring, rescheduling, or eliminating the sovereign debt of Zimbabwe held by any agency of the U.S. Government."
  2. Multilateral debt relief and other financial assistance: the Secretary of the Treasury would be allowed to direct the U.S. executive director of each multilateral development bank to "propose that the bank should undertake a review of the feasibility of restructuring, rescheduling, or eliminating the sovereign debt of Zimbabwe held by that bank" as well as to instruct the U.S. executive director of international financial organizations to which the U.S. is a member to proposition financial and technical support for Zimbabwe. Particularly if these means promoted "economic recovery and development, the stabilization of the Zimbabwean dollar, and the viability of Zimbabwe's democratic institutions.

Financial sanctions and requalifications

The Secretary of the Treasury instructed the U.S. executive director of each international financial institution to "oppose and vote against" the following.

  1. any extension by the respective institution of any loan credit, or guarantee to the Government of Zimbabwe
  2. any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United State or any international financial institution

The following were certifications that once satisfied would lift the aforementioned restrictions



Criticism

Simbi Mubako, and Cynthia McKinney (D-Georgia) accused supporters of the bill of anti-black racism.McKinney referred to the bill as "nothing more than a formal declaration of United States complicity in a program to maintain white-skin privilege [...] under the hypocritical guise of providing a transition to democracy.[5]



References

  1. Zimbabwe's Economic Crisis A Result Of Govt Mismanagement Not US Sanctions- U.S.Think Tank ⋆ Pindula News, Pindula News, retrieved: 7 Dec 2018
  2. S. 494 (107th): Zimbabwe Democracy and Economic Recovery Act of ... -- House Vote #468 -- Dec 4, 2001, GovTrack.us, retrieved: 11 Jul 2018
  3. Text of S. 494 (107th): Zimbabwe Democracy and Economic Recovery Act of 2001 (Passed Congress version) - GovTrack.us, GovTrack.us, retrieved: 11 Jul 2018
  4. Text of S. 494 (107th): Zimbabwe Democracy and Economic Recovery Act of 2001 (Passed Congress version) - GovTrack.us, GovTrack.us, retrieved: 11 Jul 2018
  5. McKinney - News Briefs, retrieved: 11 Jul 2018
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