The country is in what is called feldstein-horioka puzzle in macroeconomics. The shift from a broad spectrum foreign trade and social relations to near bilateral one with china has brought unpleasant economic counter effects like pay cuts, retrenchment, early retirement, employment freeze and adoption of high tax rates. Prezos cronies are quite uncomfortable coz they have nothing to loot coz all looting avenues like the std gauge rail, laptop and 6b uwezo fund are all nightmares. Now the big trouble is on pay cut, prezo has only one way ie use of moral suasion to woo workers accept pay cut, but who is volundarily willing to accept? If he resorts to use of force, the counter reaction is strikes, which are looming. Lecturers and university workers are demanding high pay when they are supposed to accept pay cut. The question is, what will he do if all workers refuse pay cuts?
Posted on: Thu, 13 Mar 2014 09:45:16 +0000
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