VZCZCXRO8600
PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0814/01 2861415
ZNR UUUUU ZZH
P 131415Z OCT 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC PRIORITY 5002
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHAR/AMEMBASSY ACCRA 3080
RUEHDS/AMEMBASSY ADDIS ABABA 3192
RUEHRL/AMEMBASSY BERLIN 1621
RUEHBY/AMEMBASSY CANBERRA 2455
RUEHDK/AMEMBASSY DAKAR 2824
RUEHKM/AMEMBASSY KAMPALA 3240
RUEHNR/AMEMBASSY NAIROBI 5687
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/EUCOM POLAD VAIHINGEN GE
RHEFDIA/DIA WASHDC
RUEHGV/USMISSION GENEVA 2374
RHEHAAA/NSC WASHDC

UNCLAS SECTION 01 OF 04 HARARE 000814 
 
SIPDIS 
 
AF/S FOR B.WALCH 
AF/EPS FOR G.MALLORY 
DRL FOR N.WILETT 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
STATE PASS TO USAID FOR J.HARMON AND L.DOBBINS 
NSC FOR M.GAVIN 
TREASURY FOR A.IERONIMO 
COMMERCE FOR K.BOYD 
USTR FOR C.HAMILTON 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ASEC PHUM ZI
SUBJECT: ZIMBABWE - AGOA ELIGIBILITY REVIEW 
 
REF: STATE 97769 
 
TPSC SUBCOMMITTEE ON AGOA IMPLEMENTATION COUNTRY ELIGIBILITY 
RECOMMENDATIONS 
2009 STATE SUBMISSIONS 
 
Country: Zimbabwe 
Current AGOA Status: Ineligible 
 
Country Background Summary: 
 
Economic conditions improved in Zimbabwe in 2009 after 
opposition parties agreed to join a transitional government 
that will revise the constitution and prepare for new 
elections.  Hyperinflation compelled the GOZ to withdraw the 
Zimbabwe dollar from circulation in February.  This move and 
additional liberalization measures introduced by the 
transitional government have boosted the economy, which 
should grow this year for the first time in more than a 
decade.  But President Mugabe's ZANU-PF party retains control 
over key GOZ institutions, including the judiciary, the 
police, the intelligence service, and the army.  These 
institutions continue to be involved in human rights abuses. 
 
Comments on Eligibility Requirements 
 
¶I. Market-Based Economy 
 
¶A. Major Strengths Identified 
 
With the withdrawal of the Zimbabwe dollar, there are no 
longer exchange controls.  Tariff cuts have eased 
cross-border trade.  Though Zimbabwe's physical 
infrastructure has deteriorated in recent years, it is still 
superior to that of most African countries.  The banking 
system is sophisticated by regional standards, though many 
banks are in need of recapitalization due to the effects of 
hyperinflation.  Zimbabwe's private sector is remarkably 
resilient.  Many firms would expand operations if more 
financing were available. 
 
 
¶B. Major Issues/Problems Identified 
 
 
-- The political stalemate between ZANU-PF and the 
reform-minded Movement for Democratic Change (MDC) leaves key 
economic policy questions unresolved. 
 
-- Property rights are insecure following a decade of 
government-sanctioned farm invasions.  Businesses are 
uncertain about how the government may choose to enforce an 
"indigenization" law. 
 
-- The World Economic Forum's Global Competitiveness Report 
for 2009-2010 ranks Zimbabwe second-to-last out of 133 
countries studied. 
 
-- The government lacks the financial resources to restore 
basic services.  Revenue collapsed during the 2007-08 
hyperinflation.  It is recovering slowly but still falls far 
short of GOZ requirements.  The GOZ has defaulted on external 
debts and cannot borrow. 
 
-- The central bank has been compromised by years of 
 
HARARE 00000814  002 OF 004 
 
 
political intervention.  It is in need of recapitalization, 
reform, and new leadership. 
 
II. Political Reforms, Rule of Law, and Anti-corruption 
 
¶A. Major Strengths Identified 
 
Formation of the transitional government in February has 
created new opportunities for restoration of democratic rule. 
 
¶B. Major Issues and Problems Identified 
 
-- The GOZ continues to discourage political pluralism by 
limiting citizens' rights to freedom of assembly, freedom of 
speech, and due process. 
 
-- Security forces harass, beat, and arbitrarily arrest 
ZANU-PF opponents, including MDC legislators. 
 
-- The constitution prohibits arbitrary arrest and detention; 
however, security forces arbitrarily arrest, detain, and 
torture persons. 
 
-- Prolonged pretrial detention remains a problem. 
 
-- In politically sensitive cases, the GOZ can influence or 
intimidate judges.  Members of the political elite can ignore 
adverse court rulings. 
 
-- Corruption is widespread.  The GOZ prosecutes corruption 
selectively, focusing on individuals who have fallen out of 
favor with the ruling party. 
 
-- The government's allocation of resources, such as new 
homes and confiscated commercial farms, is not transparent 
and is driven by patronage. 
 
III. Poverty Reduction 
 
¶A. Major Strengths Identified 
 
None 
 
¶B. Major Problems/Issues Identified 
 
-- President Mugabe's "fast-track land reforms," which have 
allowed the violent seizure and uncompensated confiscation of 
thousands of commercial farms, have displaced hundreds of 
thousands of farm workers.  Many rural families have lost 
their livelihoods and access to education and health care. 
 
-- Surveys indicate that 1.6 million Zimbabweans -- at least 
13 percent of the population -- will lack food security by 
the end of 2009. 
 
-- The distribution system of the GOZ's Grain Marketing 
Board, which supplies seed and fertilizer to smallholders, is 
underfunded and inefficient, hampering food production in 
many parts of the country. 
 
IV. Labor, Child Labor, and Human Rights 
 
¶A. Major Strengths Identified 
 
-- The GOZ has ratified both ILO Conventions 182 and 138. 
 
HARARE 00000814  003 OF 004 
 
 
 
-- The law prohibits forced or compulsory labor, including by 
children. 
 
-- Under the Labor Relations Amendment Act, child labor is 
punishable by a fine and two years imprisonment. 
 
-- In October 2007, the GOZ enacted the Domestic Violence 
Act, which criminalizes domestic violence and provides 
enhanced protection for victims of abuse. 
 
¶B. Major Issues/Problems Identified 
 
-- Despite official recognition of worker rights, the 
government continued to exert heavy pressure on labor unions, 
partly through limits on freedom of association and the right 
to organize.  In some cases, security forces used excessive 
force or torture to coerce striking workers to return to work. 
 
-- Unions were denied routine meetings and necessary 
consultations with constituents under the Protection of Order 
and Security Act (POSA). 
 
-- Although the constitution prohibits such practices, 
security forces tortured, raped, and otherwise abused 
persons. There continued to be reports that police used 
excessive force in apprehending and detaining criminal 
suspects. 
 
-- In moves that echoed the 2005 Operation Restore Order, 
which destroyed the homes and businesses of over 700,000 
people, the GOZ continued to demolish informal businesses and 
evict people from their homes. 
 
-- Prison conditions improved slightly but remained harsh and 
life threatening. 
 
-- The constitution provides for freedom of expression, but 
legislation limits this freedom in the "interest of defense, 
public safety, public order, state economic interests, public 
morality, and public health."  Independent newspapers face 
intimidation and excessive tax burdens. 
 
-- The constitution provides for freedom of assembly; 
however, the government restricted this right in practice 
through laws such as POSA, which many legal experts believe 
to be unconstitutional.  POSA does not require permits for 
meetings or processions, but it does require that organizers 
notify the police of their intentions to hold a public 
gathering seven days in advance.  Failure to do so results in 
criminal prosecution as well as civil liability. 
 
-- Although the constitution provides for freedom of 
association, the government restricted this right in practice 
for political organizations.  In 2008 Zimbabwe was one of two 
countries the ILO's Applications and Standard Committee 
criticized regarding implementation of ILO Convention 87, 
which deals with freedom of association.  Because of 
consistent violations of labor rights, in February the ILO 
launched a Commission of Inquiry to investigate violations of 
ILO Convention 87 and 98, the right to organize and bargain 
collectively.  Members of the Commission visited Zimbabwe in 
April and August and were followed by intelligence officers 
on both occasions. 
 
 
HARARE 00000814  004 OF 004 
 
 
-- Domestic violence against women, especially wife beating, 
continued to be a serious problem and crossed racial, ethnic, 
and economic lines.  Although a Domestic Violence Act was 
passed in 2007, few have been charged under the law. 
 
-- The government's commitment to children's rights and 
welfare remained weak.  The government has a National Plan of 
Action for Orphans and Vulnerable Children, which was 
completed in 2004 but has not been fully implemented. It is 
designed to ensure that orphans and vulnerable children are 
able to access education, food, health services, and birth 
registration and are protected from abuse and exploitation, 
but activities set out in the plan were insufficiently 
funded. 
 
-- There are no laws to prohibit specifically trafficking in 
persons.  There were reports that the country was both a 
point of origin and a transit path for trafficking.  In the 
2009 Trafficking in Persons Report, the State Department 
ranked Zimbabwe as Tier 3, the lowest possible ranking. 
 
¶V. International Terrorism/U.S. National Security 
 
¶A. Major Strengths Identified 
 
-- While the U.S. has a severely strained bilateral 
relationship with Zimbabwe, the GOZ does not engage in 
actions specifically meant to support international terrorism 
or undermine U.S. national security; it has also been 
cooperative on counter-terrorism issues. 
 
¶B. Major Issues/Problems Identified 
 
-- Most senior GOZ officials regularly attempt to undermine 
U.S. foreign policy interests through false attacks at 
high-profile international fora. 
PETTERSON