Gideon Gono

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Dr. Gideon Gono
Gideon Gono

Gono after presenting a monetary policy statement to the Parliament of Zimbabwe, 2008.
Governor, Reserve Bank of Zimbabwe
Incumbent
Assumed office 
2003
President Robert Mugabe
Preceded by Leonard Tsumba
Born 4 April 1954
Flag of the Federation of Rhodesia and Nyasaland Rhodesia and Nyasaland
Nationality Flag of Zimbabwe Zimbabwean
Political party ZANU-PF
Spouse Hellen Mushanyuri Gono
Residence Harare, Zimbabwe
Alma mater University of Zimbabwe
Occupation Govenor of the Reserve Bank of Zimbabwe
Profession Banker
Religion Christian
Zimbabwe

This article is part of the series:
Politics and government of
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Gideon Gono is the controversial Governor of the Reserve Bank of Zimbabwe and former CEO of the Jewel Bank, formerly known as the Commercial Bank of Zimbabwe.[1] [2] Rapid expansion of the money supply on his watch has been a key contributor to Zimbabwe's hyperinflation.[3] Gono is among a host of individuals not allowed to travel to the United States because the US government alleges that he has worked to undermine democracy in Zimbabwe.[4]

Contents

[edit] Background

He started his career with ZimBank, another Government Bank and eventually moved to the Commercial Bank of Zimbabwe. He was appointed by Professor Jonathan Moyo to head the University of Zimbabwe Council where he quickly awarded himself with an honorary degree. During this time, he was the personal banker of Robert Mugabe, up until he was appointed as governor of the Reserve Bank of Zimbabwe.

[edit] RBZ Governor

After taking over the governorship of the Reserve Bank of Zimbabwe, Gono implemented a host of highly-criticized policies. The main criticism comes from the fact that, on the whole, his policies appear to have failed to resuscitate the decilining economy of Zimbabwe.Since he became governor, Zimbabweans have suffered through [5]:

  • cash shortages,
  • fuel and food scarcity, shortages in agriculture[6] [7] [8]
The sight of motorists in long queus waiting for fuel is now a permanent feature in Harare. Gono promised to normalize the situation, but the people of his district have yet to see a great change in supplies.
The sight of motorists in long queus waiting for fuel is now a permanent feature in Harare. Gono promised to normalize the situation, but the people of his district have yet to see a great change in supplies.

[edit] Policy Regime

Critics had noted that most of the monetary policy statements in the past have had biblical references. Notably, he usually ends in policy statements to the Parliament of Zimbabwe thus: "In the Lord's hands, I commit this Monetary Policy Framework for our economic turnaround."[9]

[edit] Zimbabwe Dollar

Gono has printed money against the advice of economists but with full support from Robert Mugabe. This practice has been blamed for debasing the Zimbabwean dollar and increasing inflation. Gideon Gono scrapped old bank notes in August 2006 which resulted in another round of massive price increases. [13] In December 2007, he introduced a $750, 500, 250, thousand notes into circulation.[14] He has slashed zeros from the Zimbabwe Dollar for a number of times.[15]

[edit] The Banks & Bereau de Change

In additions to these allegations, critics also blame Gono for closing 16 money transfer agencies. A number of banks have been raided and the operating licences cancelled.[16] [17] [18]

[edit] The Black Market

He has traded for foreign currency at the black market, an activity he vowed to crush when he took over the governorship of the bank.[19]

[edit] Inflation 'War'

Gono refuted media reports that had claimed he was against price cuts that the government instituted to arrest inflation. As time went by, it became apparent that the RBZ had initiated and actually given birth to price cuts that saw many business closing and shelves in shops go bare.[20] His efforts to fight inflation had yielded nothing.[21] [22]

[edit] Agriculture Sector

The governor has spearedhearded the campaign to make the land reform program a success. As such, Gono had placed the RBZ at the forefront of fertilizer and machinery procurement. A number of scandals have come to light, esp. with the procurement of fertilizer, with the governor at the center of the tale.[23]

Backed by vice president Joyce Mujuru, Gono has several times called for an end to farm takeovers in a bid to stabilise agricultural production and halt inflation. Gono's criticism of farm takeovers is in sharp contrast to statements made by other ministers, including Lands Minister Didymus Mutasa

In an interview with the state-controlled Herald newspaper, he said "I have openly condemned such retrogressive acts as destruction of horticultural greenhouses, decimation of tobacco barns, institution of fresh farm invasions".[24] "There are too many subdivisions among us, too many contradictions, too much infighting among ourselves, incredible suspicion and mistrust of one another," Gono said.

[edit] The Retail Sector

He has sent in the police to arrest businessmen for failing to reduce their prices. On one occasion, he roamed the streets of Harare personally threatening shop owners. [25]

[edit] Why I have failed

He had admitted that his quest to rescue and improve the economy of Zimbabwe failed.[26]. Despite the misery of Zimbabweans, Gono was said 'to smile in the face of economic collapse.'[27] Gono said there were several factors that were outside the central bank's control, which made it difficult to rein in inflation. "Some of those factors are within the governor's control and influence while others such as politics, sanctions, droughts, under-utilisation of farms, disruptions at those farms, rampant corruption, indiscipline, law and order are factors outside the governor's control," he said in an interview with the official Herald newspaper.[28] He has also blamed the failure of the economy on sanctions imposed on the country, a charge critics refute.[29]

He has kept his job as the governor, despite the abysmal failure of his policies, mainly through the patronage of his benefactor, Robert Mugabe, critics and civic leaders allege. Mugabe has not only shielded Gono from his critics, but has gone further and commended him in his activities as governor, notwithstanding that all his policies have failed.[30] He has been the president's banker for a long time before he took over the governorship.[31]

[edit] Ambitions

He has expressed his interest in becoming the next president of Zimbabwe.[32]

[edit] See also

[edit] References

  1. ^ "Zimbabwe: 'Mugabe downfall within six months'", Zimbabwe Standard, June 24, 2007
  2. ^ "Gideon Gono, Mugabe's new political tool", Kubatana.net, August 19, 2005 (accessed 02/08/2008)
  3. ^ "Hyperinflation in Zimbabwe" and cites therein, Greg Mankiw's Blog (accessed 05/24/2008)
  4. ^ Recent OFAC Actions, US Dept. of Treasury, November 23, 2005 (accessed 02/07/2008)
  5. ^ "TO DR. GIDEON GONO: The Truth", The Zimbabwe Gazette, February 4, 2008
  6. ^ Price Cuts[*Shortages in agriculture,] (accessed 02/08/2008)
  7. ^ "Roundup: Zimbabwe fights fuel crisis", Xinhua News Agency, May 31, 2006 (accessed 02/08/2008)
  8. ^ "Zimbabwe imports wheat", TVNZ, September 27, 2006 (accessed 02/08/2008)
  9. ^ a b "Gideon Gono “… in sheep’s clothing” : The Role of the RBZ Governor in Murambatsvina", Sokwanele, June 8, 2005 (accessed 02/08/2008)
  10. ^ Monetary Policy, AllAfrica, August 7, 2006 (subscription required) (accessed 02/08/2008)
  11. ^ "Unpacking the Butau-Gono Forex and Cash scandal", Nehanda Radio, January 4, 2008 (accessed 02/08/2008)
  12. ^ Alice in Wonderland, AllAfrica, February 1, 2007 (subscription required)
  13. ^ Slashes Zeros, AllAfrica, August 1, 2006 (subscription required) (accessed 02/08/2008)
  14. ^ "The $750,000 note that won't buy a loaf of bread", The Scotsman, December 20, 2007 (accessed 02/08/2008)
  15. ^ Subtracting Zeroes, The New York Times, August 8, 2006 (subscription required) (accessed 02/08/2008)
  16. ^ Gono Under fire, AllAfrica, July 7, 2006 (subscription required) (accessed 02/08/2008)
  17. ^ "Central bank shuts down money transfer agencies in Zimbabwe", International Herald Tribune, October 10, 2006 (accessed 02/08/2008)
  18. ^ "Gono shuts down money transfer agencies", Independent Online, October 10, 2006 (accessed 02/08/2008)
  19. ^ "Zimbabwe: President Backs Gono", The Herald, February 16, 2007
  20. ^ "Gideon Gono: 'I'm not against price war'. (ZIMBABWE ECONOMY: The real story)", New African, August 1, 2007
  21. ^ "Zimbabwe inflation still soaring", USA Today, October 18, 2007 (accessed 02/08/2008)
  22. ^ "Zimbabwe: November Annual Inflation Rises to 26 470,8pc – CSO", The Herald, February 4, 2008 (accessed 02/08/2008)
  23. ^ "From Whom Did Gono Buy the Fertilizer?", ZimDaily.com, November 23, 2006
  24. ^ "Friends want me dead, claims Zim bank chief", Independent Online , October 23, 2006
  25. ^ No more mr. nice guy, AllAfrica, August 14, 2006 (subscription required) (accessed 02/08/2008)
  26. ^ "Zimbabwe's central bank chief admits failure", New Zimbabwe.com, November 3, 2006 (accessed 02/08/2007)
  27. ^ "Gideon Rising", Africa Confidential, Vol 45 No 15 (accessed 02/08/2008)
  28. ^ "Zim losing inflation battle", News24, October 23, 2006
  29. ^ "Dr Gideon Gono: How Sanctions are ruining Zimbabwe", African Business, June 1, 2007 (accessed 02/08/2008)
  30. ^ Leave Gono alone, AllAfrica, July 26, 2006 (subscription required) (accessed 02/08/2008)
  31. ^ "Gideon Gono’s star starting to fade", Zimbabwe Review, December 30, 2007 (accessed 02/08/2008)
  32. ^ Gono can't make it as president, AllAfrica, August 18, 2006 (subscription required) (accessed 02/08/2008)

[edit] External links