The document discusses economic decisions made from a position of privilege in Zimbabwe. It argues that restricting the supply of physical cash will negatively impact production as employees will have to spend time waiting in bank queues. This could lead businesses to overinvoice to receive the premium paid for electronic transfers. Short-term solutions proposed include employers providing cash allowances for commuting costs and ensuring privilege is not abused. Long-term recommendations include fully considering the effects of policies on all economic actors, not just privileged voices, through broader consultations. The document advocates for representing everyday citizens, not just industry leaders.

1. Decisions
from a position of privilege
Real Economics of ZW
01 OCT 2019

2. Another classic of making of
economic decisions in a
position of privilege, “treating
the symptoms of the problem”.

3. No more withdrawing from
• Mobile Money
• Point of Sale Machines

4. Where did this premium emanate from?
 5% bonus of all remittances
 inconvenience of bank queues(literally esteem banking on the street)
 Unreliability of electronic (electricity) money transfer
platforms
 Poor network coverage
 Intermittent electronic money transfer services
 Rampant printing of electronic rtgs,
 privacy for trade

5. Literally supply/distribution of cash
has been cut off, thus increasing
its demand with little/limited supply
from the bank, this will take a toil
on production, as employees are
now meant to go queue for cash to
commute at the bank,
and/or wait in ever winding public
transport queues
Possible outcome/cobra effects
Cash business owners or
operators e.g. minibus operators,
vendors wholesalers, tuck-shop to
over invoice (electronically receiving the
premium)
Yes I do appreciate that
increasing the money
supply of physical cash will
undermine the exchange
rate.

6. Immediate/ reactionary
 Employers to pay commuting
employees with weekly cash on
transport allowances
 Ensuring privilege employees do not
abuse the facility
 Ensuring employers do not abuse this
facility
This reduces bank deposits, however it
ensures that the actual economic units are
not adversely affected by the physical
money supply restrictions and no
production time is lost in bank queues,
unless you say go queue there is no
power for production either way
Proactive/ medium-term
 Holistic over view of suggested
statutory instruments’ possible ripple
effects and counter measures
 Full consultations with commuters than
privileged few (the advisory committees
should have “real economic players”
everyday commuters), not just captains
of industry
Not a representative of
an association but
literally a social juror
to represent the “real”
community/society
Recommendations

7. Things are not
equal!