The lack of democracy in Swaziland is a substantial
risk to the kingdom’s growth, according to a World
Bank report.
And, Tibiyo Taka Ngwane, the conglomerate owned by the royal family, deters private companies from operating and thereby boosting the kingdom’s economy.
And, Tibiyo Taka Ngwane, the conglomerate owned by the royal family, deters private companies from operating and thereby boosting the kingdom’s economy.
Swaziland is ruled by King Mswati as an absolute
monarch. Political parties are banned from taking part in elections and the
King chooses the government and top judges. Groups advocating for democracy in
Swaziland are banned under the Suppression
of Terrorism Act and dissenters
are jailed.
The King also controls large parts of the Swazi
economy through Tibiyo and holds most of the land in Swaziland ‘in trust for
the Swazi nation’.
The World Bank report, called the Country
Partnership Strategy for the kingdom of Swaziland 2015 – 2018, said, ‘Perceptions about lack of
voice and accountability and weak rule of law hamper growth and development. The
limitations on the rights to participate and form political parties deprives
the citizenry of political competition and electoral feedback to prioritize
policy choices.
‘The regular arrest of pro-democracy activists
contributes to pushing Swaziland low on the political freedoms scale and high
in the rankings for perceptions of corruption. Transparency International ranks
Swaziland 82 among 177 countries on its Corruption Perception Index.’
The World Bank added, ‘The political and governance
risks are expected to be substantial’ during the coming years.’
It said, ‘The governance system in Swaziland leaves
room for political interference, policy reversals, vested interests, nepotism
and corruption which can adversely affect the selection and prioritization of
sectoral investments, as well as the effective implementation of programs.’
It added that programs that the World Bank would
support, including those to alleviate poverty
and stimulate economic growth, ‘can be particularly vulnerable to such risks,
if the project beneficiaries become direct competitors to established vested
interest’.
The World Bank consulted various groups within
Swaziland, including ‘the donor community, civil
society and the private sector’ in compiling its
report.
The
World Bank concluded, ‘All parties consulted agree
on limitations in state capacity which undermines
implementation of policies and service delivery. Some stakeholders identified the
lack of political will to review the current system of Governance and the
separation of powers. Cases of imprisonment
of media representatives and unionists
demonstrate that the Swazi public has no
mechanism through which to voice their concerns.’
The World Bank report also criticised King Mswati’s
conglomerate, popularly known as Tibiyo.
It said, ‘Direct intervention by the state in
economic sectors also seems to be a deterrent. The state is invested in key
economic sectors through state-owned enterprises (SOEs) and the company owned
by the royal family – Tibiyo Taka Ngwane. These institutions operate in multiple
economic sectors including agriculture, transport, finance, tourism and
housing, which put them in direct competition with private players, creating conflicts
of interest in several sectors.
‘Furthermore, some SOEs function as regulators in
their sectors, and are responsible for charging levies on imports by private
enterprises of products that they themselves are selling.
‘This creates another set of conflicts of interest
and potential opportunities for corruption. The overall result is further
uncertainty among investors.’
See also
KINGDOM’S
WEALTH STAYS WITH THE KING
IMF
TELLS SWAZILAND HOME TRUTHS
GOVT
‘SNEERS AT WORLD BANK REPORT’
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