How do we define value?
For many people value can be measured in owning property, money (both cash and what is in the bank), income generation (businesses we own/employment),cars we own,and sometimes education. I have chosen these examples, as they have an interesting spin to them in Zimbabwe. Many of us go so far as to put faith in particular forms of value – faith that they will retain their value. Travelling in Zimbabwe has given me a new perspective on many forms of value many people place their faith in, that I feel are worth sharing.
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Firstly, property.
You may take it for granted, but the right you have to live in your house (whether you own or rent) depends on a fundamental pillar of your constitution - besides establishing the framework of a governing system, a constitution often addresses the issues of property rights.
Why does someone not squat in your living room? Well for that, you’re protected by the law.
But why doesn’t a government official just claim ownership of your land?What ensures that money you pay to “buy a house” ensures your rights over the property? That you’ll probably find engrained in the constitution.
In the 90’s and again 10 years later, the government of Zimbabwe overlooked property rights in favour of a newly formed “land reform policy”. In short, this meant that if you owned agricultural land outside of urban areas, your rights to that land were simply revoked. No matter how much money you paid, or how long the family owned that land, or what you had built on that land, it then fell outside of your control.
What effect did revoking property rights have in Zimbabwe? Industries, farms and small holdings no longer owned their means of production. So as property was reclaimed, production ground to a halt.
What stops this from happening elsewhere? States often realize that politics and economics push and pull on each other, where the state’s direction and policies are a result of both economic and political interests. No politician will cripple their own economy, nor will any industry willingly loose favour with the governing body of their state. In Zimbabwe, political interests ignored economic consequence, and either knowingly or not, brought the country’s economy to its knees.
Property rights worldwide are often taken for granted, but essentially are subject to political stability of the country. Property is only a form of value in a state experiencing political stability, and in a society that respects the rule of law.
------------------------------------------------
Secondly, money.
In 2006, inflation was so high that Zimbabwean money lost half its value every 36 hours. Imagine that happening to the USD$. How did this happen?Well, to understand the whole picture, study Politics & Economics. A piece of the puzzle looks like this…
Every country has state expenses. The state has to pay expenses, including social services, the salaries of politicians, and the military. Let us take Zimbabwe - in the early 2000’s the country stopped producing valuable products (as mentioned above). Industries began shutting down and the economy began to shrink. Irrespective of economic conditions, countries still need to import/export products (e.g. food, oil, vehicles and raw materials). In the case where a country no longer produces valuable products to import/export, it resorts to printing more money to pay its expenses. This may pay for expenses today, but floods the market with money, effectively de-valuing the local currency. This is one of the causes for inflation – the effect of money losing value.
Money is only a form of value in a state experiencing economic and political stability, where inflation is kept competitively low.
------------------------------------------------
Thirdly, income generation in the form of businesses&employment.
Almost all businesses depend heavily on property rights (in the case of a factory), and a stable currency (for buying and selling products, both nationally and internationally). As a result of the 2006-2009 economic crisis in Zimbabwe, neither were possible in Zimbabwe. To add salt to the wound, Zimbabwe is also enforcing a 51% indigenous ownership policy for all businesses, which discourages foreign companies from planting themselves in Zimbabwean soil.
Furthermore, Zimbabwe still suffers from between 90-95% unemployment rate (depending on your source), and instead of encouraging employment, and trade unions have stepped up to protect those few employed, discouraging businesses from employing full-time workers. Businesses are now actively retrenching employees (minimizing costs), and hiring on contract basis (which avoids trade unions).
Employment is only a form of valuein a state where trade unions encourage businessesto risk employing full-time staff.
A business is only a form of value in a state that can ensure monetary stability, property rights and policies that encourage start-ups and growth.
------------------------------------------------
Fourthly, personal transport.
Leading up to 2008/9, Zimbabwe couldn’t trade Zimbabwean dollars on the international market, because no one wants to buy a currency that is deflating at such a rate. For those who are not aware, Zimbabwe is not known for drilling for/refining its own oil. As a result, Zimbabwe faced huge problems importing petrol.
We’ve stayed with friends who own big 4x4s – cars that only get 7 km/litre. How does that compare? A small 1.3l Opel Corsa can achieve 16 km/litre. A VW Polo Bluewave gets 30 km/litre. A Toyota Hybrid maybe 50 km/litre… run and go buy a Hybrid! But how far can a car drive when your local petrol pump runs dry?
A mode of transport is only a form of value if running costs are made affordable by the economic conditions of the state.
------------------------------------------------
Fifthly, education.
In the 80’s Zimbabwe had a continentally competitive education system. All Zimbabweans took O-levels and A-levels (which prepare students to cope in university), and the quality of university graduates from UZ were setting the bar for all African universities!
Unfortunately the economic crisis affected the universities in Zimbabwe. From 2006-2009 Zimbabwe lost many of its best professors to the rest of Africa, because salaries had dropped to a mere USD$200 per month (in the case of UZ). Doors were actually closed to 1st years considering entering UZ (as it probably was for the other universities in Zimbabwe), only to be opened again in 2010.
However, despite the impact of this crisis on this generation of students, I believe Zimbabwe will recover well, and quickly. Simply walking down the street in Harare, we have observed that Zimbabweans are mostly literate, and capable of engaging in critical conversations – something that even South Africa cannot boast. There seems to be an inherent level of education among a large percentage of the citizens of this beautiful country, most importantly, among adults.
It is a well-known fact that children brought up by educated parents will often achieve at least the education of their parents. For this reason, I believe that Zimbabwe will witness well-educated future generations of citizens, starting with this generation of children. Thanks are due to the investment in education over the previous decades – a lesson many countries can be inspired by.
Despite the vast expanse of things to learn, many people opt for a “package” degree, such as a BSc, BA, Engineering or medicine. Although I am all for standardization in assessment of quality and ability, I do find that institutions are given significant power to determine their student’s future. Take Kristen for instance. She submitted a fantastic (I proof read it) MA thesis at the end of November 2010 and now almost 4 months later, she is still is without qualification. The University of Cape Town claims it isn’t their fault, pointing to a blockage in the pipes higher up. Kristen has nightmares that it’ll be returned to her rejected. For the last 4 months, Kristen has been hesitant to apply for jobs because she might not have the qualifications. Not only does this have economic consequences, but also gives her reasons to second guess her own abilities and self-worth. She’s absolutely brilliant, and her work is worthy of a first class pass… but UCT’s centralized power has given Kristen reason to think otherwise. And that is simply unfair.
But on the positive side of qualifications, once an individual achieves a level of education, it can never be taken away from them. Institutions may fail, economies may collapse, money may become toilet paper, cars may break down, but knowledge remains king.
Education proves time and time again to be a form of value on both a personal and social level, despite economic/political instability, the lack of opportunities available and social instability - albeit it does depend on educational institutions acting responsibly, fairly and efficiently.
------------------------------------------------
How do you perceive value? What forms of value do you invest in?
------------------------------------------------
For many people value can be measured in owning property, money (both cash and what is in the bank), income generation (businesses we own/employment),cars we own,and sometimes education. I have chosen these examples, as they have an interesting spin to them in Zimbabwe. Many of us go so far as to put faith in particular forms of value – faith that they will retain their value. Travelling in Zimbabwe has given me a new perspective on many forms of value many people place their faith in, that I feel are worth sharing.
------------------------------------------------
Firstly, property.
source: http://in.all.biz/img/in/service_catalog/15784.jpeg
You may take it for granted, but the right you have to live in your house (whether you own or rent) depends on a fundamental pillar of your constitution - besides establishing the framework of a governing system, a constitution often addresses the issues of property rights.
Why does someone not squat in your living room? Well for that, you’re protected by the law.
But why doesn’t a government official just claim ownership of your land?What ensures that money you pay to “buy a house” ensures your rights over the property? That you’ll probably find engrained in the constitution.
In the 90’s and again 10 years later, the government of Zimbabwe overlooked property rights in favour of a newly formed “land reform policy”. In short, this meant that if you owned agricultural land outside of urban areas, your rights to that land were simply revoked. No matter how much money you paid, or how long the family owned that land, or what you had built on that land, it then fell outside of your control.
What effect did revoking property rights have in Zimbabwe? Industries, farms and small holdings no longer owned their means of production. So as property was reclaimed, production ground to a halt.
What stops this from happening elsewhere? States often realize that politics and economics push and pull on each other, where the state’s direction and policies are a result of both economic and political interests. No politician will cripple their own economy, nor will any industry willingly loose favour with the governing body of their state. In Zimbabwe, political interests ignored economic consequence, and either knowingly or not, brought the country’s economy to its knees.
Property rights worldwide are often taken for granted, but essentially are subject to political stability of the country. Property is only a form of value in a state experiencing political stability, and in a society that respects the rule of law.
------------------------------------------------
Secondly, money.
source: http://www.paranormalknowledge.com/wp-content/uploads/2009/07/money.jpg
In 2006, inflation was so high that Zimbabwean money lost half its value every 36 hours. Imagine that happening to the USD$. How did this happen?Well, to understand the whole picture, study Politics & Economics. A piece of the puzzle looks like this…
Every country has state expenses. The state has to pay expenses, including social services, the salaries of politicians, and the military. Let us take Zimbabwe - in the early 2000’s the country stopped producing valuable products (as mentioned above). Industries began shutting down and the economy began to shrink. Irrespective of economic conditions, countries still need to import/export products (e.g. food, oil, vehicles and raw materials). In the case where a country no longer produces valuable products to import/export, it resorts to printing more money to pay its expenses. This may pay for expenses today, but floods the market with money, effectively de-valuing the local currency. This is one of the causes for inflation – the effect of money losing value.
Money is only a form of value in a state experiencing economic and political stability, where inflation is kept competitively low.
------------------------------------------------
Thirdly, income generation in the form of businesses&employment.
Almost all businesses depend heavily on property rights (in the case of a factory), and a stable currency (for buying and selling products, both nationally and internationally). As a result of the 2006-2009 economic crisis in Zimbabwe, neither were possible in Zimbabwe. To add salt to the wound, Zimbabwe is also enforcing a 51% indigenous ownership policy for all businesses, which discourages foreign companies from planting themselves in Zimbabwean soil.
Furthermore, Zimbabwe still suffers from between 90-95% unemployment rate (depending on your source), and instead of encouraging employment, and trade unions have stepped up to protect those few employed, discouraging businesses from employing full-time workers. Businesses are now actively retrenching employees (minimizing costs), and hiring on contract basis (which avoids trade unions).
Employment is only a form of valuein a state where trade unions encourage businessesto risk employing full-time staff.
A business is only a form of value in a state that can ensure monetary stability, property rights and policies that encourage start-ups and growth.
------------------------------------------------
Fourthly, personal transport.
source: http://static.ddmcdn.com/gif/hybrid-car-hyper.jpg
Leading up to 2008/9, Zimbabwe couldn’t trade Zimbabwean dollars on the international market, because no one wants to buy a currency that is deflating at such a rate. For those who are not aware, Zimbabwe is not known for drilling for/refining its own oil. As a result, Zimbabwe faced huge problems importing petrol.
We’ve stayed with friends who own big 4x4s – cars that only get 7 km/litre. How does that compare? A small 1.3l Opel Corsa can achieve 16 km/litre. A VW Polo Bluewave gets 30 km/litre. A Toyota Hybrid maybe 50 km/litre… run and go buy a Hybrid! But how far can a car drive when your local petrol pump runs dry?
A mode of transport is only a form of value if running costs are made affordable by the economic conditions of the state.
------------------------------------------------
Fifthly, education.
In the 80’s Zimbabwe had a continentally competitive education system. All Zimbabweans took O-levels and A-levels (which prepare students to cope in university), and the quality of university graduates from UZ were setting the bar for all African universities!
Unfortunately the economic crisis affected the universities in Zimbabwe. From 2006-2009 Zimbabwe lost many of its best professors to the rest of Africa, because salaries had dropped to a mere USD$200 per month (in the case of UZ). Doors were actually closed to 1st years considering entering UZ (as it probably was for the other universities in Zimbabwe), only to be opened again in 2010.
However, despite the impact of this crisis on this generation of students, I believe Zimbabwe will recover well, and quickly. Simply walking down the street in Harare, we have observed that Zimbabweans are mostly literate, and capable of engaging in critical conversations – something that even South Africa cannot boast. There seems to be an inherent level of education among a large percentage of the citizens of this beautiful country, most importantly, among adults.
It is a well-known fact that children brought up by educated parents will often achieve at least the education of their parents. For this reason, I believe that Zimbabwe will witness well-educated future generations of citizens, starting with this generation of children. Thanks are due to the investment in education over the previous decades – a lesson many countries can be inspired by.
Despite the vast expanse of things to learn, many people opt for a “package” degree, such as a BSc, BA, Engineering or medicine. Although I am all for standardization in assessment of quality and ability, I do find that institutions are given significant power to determine their student’s future. Take Kristen for instance. She submitted a fantastic (I proof read it) MA thesis at the end of November 2010 and now almost 4 months later, she is still is without qualification. The University of Cape Town claims it isn’t their fault, pointing to a blockage in the pipes higher up. Kristen has nightmares that it’ll be returned to her rejected. For the last 4 months, Kristen has been hesitant to apply for jobs because she might not have the qualifications. Not only does this have economic consequences, but also gives her reasons to second guess her own abilities and self-worth. She’s absolutely brilliant, and her work is worthy of a first class pass… but UCT’s centralized power has given Kristen reason to think otherwise. And that is simply unfair.
But on the positive side of qualifications, once an individual achieves a level of education, it can never be taken away from them. Institutions may fail, economies may collapse, money may become toilet paper, cars may break down, but knowledge remains king.
Education proves time and time again to be a form of value on both a personal and social level, despite economic/political instability, the lack of opportunities available and social instability - albeit it does depend on educational institutions acting responsibly, fairly and efficiently.
------------------------------------------------
How do you perceive value? What forms of value do you invest in?
------------------------------------------------
Very well said and quite to the point. I had done a Rotary Matching Grant 6 years ago with the Rotary Club of Harare to put a bore hole water system in a Children's home. At the time, the Harare Rotary Club had about 45 members and all went well with the well and bore hole. They used extra water to grow a vegetable garden which was used by the children and excess sold to help the school. Then the government started the Land reform policy you describe so accurately above. Within a year, the Rotary Club of Harare was left with 2 or 3 members and the Children's home was a disaster. Truly sad.
ReplyDeleteYou are right about Kristen as well, she is brilliant and her work is always well done. Keep your spirits up Kristen and remember that you don't let others define your worth, you define it.
I agree, a very good entry LA. Traveling has not numbed your senses obviously. Speaking of values, Stephen Covey in his 7 Habits has an excellent Chapter on values. He compares the "Personality Ethic" with "Character Ethic". Worth reading. He systematically goes through the various personal values that people take on (you have named a few: education, money, Property, job status, etc.). Quote: "The Personality Ethic describes many current success philosophies: they are typically superficial, concerned with social or public image, and use quick-fix techniques to temporarily solve problems without addressing the underlying, chronic problems." In contrast to that: "The Character Ethic is a philosophy that describes a foundation for success based on principles of effective living such as integrity, humility, courage, temperance, justice, patience, industry, etc." - does that make sense? Does that relate in any way to what you are trying to say? Safe travels!
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