Jan Raath in Harare
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The cost of living doubled in Zimbabwe last month, lifting the annual rate of inflation above 3,700 per cent, a stark sign of the economic turmoil blamed on government policies. Prices of food – which make up one third of the consumer basket used to calculate inflation – domestic power, fuel and public transport fares contributed to the steep rise, according to Zimbabwe’s Central Statistical Office.
Economists forecast that inflation will continue to spiral out of control. Tony Hawkins, an independent economist in Harare, said: “It will be well above 10,000 per cent by the end of the year, probably nearer 15,000 per cent.”
The latest inflation figures were published a week late and hidden away on the inside pages of the state-controlled Herald newspaper.
A single brick now costs what ten years ago would have bought a mansion in the capital’s upmarket areas. This week the cost of postage stamps went up 600 per cent. In the confusion over the value of anything, two cans of baked beans and a bottle of beer will also provide three months’ subscription to the Harare Club, the city’s elite gentlemen’s club that has reciprocity with most of London’s main clubs.
Last month Nicholas Goche, the Minister of Labour, admitted that he paid workers on the farm he seized from white farmers, the sum of Zim$10,000 (£20) a month, the same as one copy of The Herald.
President Mugabe, who holds an economics degree from London University and maintains that printing money keeps prices down, added a new weapon to his quixotic war with inflation this week, and signed laws to establish an Incomes and Pricing Commission. It will have sole right to set charges for the hundreds of price-controlled items, and establish profit margins. Anyone who violates the fixed prices can be jailed for up to five years.
In the past eight years of accelerating economic chaos, price controls have become a main cause of inflation, forcing manufacturers to go out of business or stop production because of the unworkable prices imposed, and making goods available only on the far dearer black market. “It is going to create some kind of price freeze,” said Mr Hawkins. “There will be shortages all over, and manufacturers will find they cannot produce.”
With the announcement of the new inflation figures, the illegal “parallel” rate of exchange – the mark generally used by business in the country – soared yesterday to Zim $70,000 to the pound. At the beginning of the year it stood at Zim$7,000 to the pound.
Mr Mugabe, Zimbabwe’s sole ruler since independence in 1980, blames Western sanctions for the state of the economy. The country faces food shortages this year after a deficit of the staple maize crop. This week officials cautioned of bread shortages because wheat growers had so far planted only 10 per cent of their targets.
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Well don't be mean about it. I know you are upset at how bad things are, but at the end of the day what can we do and be more constructive than just showing our displeasure? Are you ready to find citizenship there and take Mugabe's place and rule the country and make it a real utopia?
Preetha, Singapore,, Singapore
I presume this is measured by the m0 supply of money?
John Walthall, Rochester, NY
The rate is 300,000 to 1.
Chan Kai Yan, Singapore, Singapore
As an Ex- Rhodesian I just cant understand all this hand wringing tut tut, isnt it just terrible what Mugabe has done to a once lovely country stuff. We knew what this man was capable of 35 years ago and so did the rest of the world. It pleases me to unimaginable heights when I hear how bad things are under Mugabe's dictatorship. We told you so and now you have got what you deserved, another black utopia.
Graham Oxlade, Sydney, Australia
Hi,
Does anybody knows real exchange rate of ZIM $ against US$ for this moment (today May 28th 2007)?
Kestas, Vilnius, LITHUANIA
Rusununguko, London, UK,
What are you doing preaching about 'Britons' when you yourself are living in the UK?? If we're all as bad and ignorant as you make us out to be, what are you doing here? People do care in the UK but our Political parties have too much control, it;s not just about the vote anymore, because we don't get what we want in the UK, we get what the Government let us have whilst they do whatever they want. They also brainwash most of the UK with state run television into being British and better than everyone else in the world, and more importantly, never wrong. We are not as free as the Government would have us believe.
Darren, Southampton,
I was just in Zim last week. It's worse than people are reporting and there's not a single person to blame except Mugabe. He's ruined the country, he's ruining the people of Zim, and the only reason he is squeezing his grip on the presidential seat is because he KNOWS he'll go to The Hague! Get him out. Now.
M, Mt. Pleasant,
To answer Kishor's question about 15,000% inflation; 15,000% per year equates to 2.67% per day (15000^(1/365)). In other words if something cost you 100 Zim today, you cant even buy a drop of water for 100 Zim these days, it would cost you 102 Zim tomorrow, 120 Zim by the end of the week, 220 Zim by the end of the month, 1070 Zim in three months, and 11,466 Zim in 6 months, and 1,500,000 Zim by the end of the year.
To put this in UK terms it would mean that a 50p loaf of cheap bread today would cost £7,500 by the end of the year.
All this to keep control of power? This goes beyond the realm of criminal into the realm of genocidal. But of course Africa's quiet diplomacy is the muffled whimper of some child starving to death...
Matt, Belfast, N. Ireland
Leave Zimbabwe alone Britons and give them a chance to solve their problems. Britain refused to honour Lancaster House Agreement that gave Zimbabwe Independence when Tony Blair took power in 1997.
Mugabe took the land and Britain should compensate the White Farmers and stop meddling into Zimbabwe political affairs because they will not get any solution as they wish.
If the UK public cares about Zimbabwe they should ask their governemnt to compensate the White Farmers. I thought UK was a civilised nation but I am starting to see their ugly face, the preach human rights to Zimbabwe and then go and murder in Iraq disobeying International Law.
Give Zimbabwe a chance and move on with your UK and stop shedding crocodile tears on your faces.
Rusununguko, London, UK
Mr. Mugabe is either an idiot or just suppressive. "Printing money keeps prices down" does it?? As someonw with a degree, he is not idiot. The only conclusion one can reach that this man is a dangerous psychopath whose sole goal is to repress his people and eventually starve them all.
Guy Zino, Burbank, USA/California
His name is Ian Douglas Smith. The UK government did not favour Mugabe for power, or install him. They were led to believe by Ian Douglas Smith's intelligence services that Bishop Muzorewa would win the democratic election held in 1980. To their surprise, Mugabe won the election. He has never been popular with the UK government. Bono and Bob Geldorf have been some of the most outspoken critics of African leaders; in Geldorf's case he has called officials corrupt to their faces. Bono and Geldorf are perfectly aware of the problem of inhumane behaviour and corruption. The difference between you and them is that you think we should all just wash our hands of Africa, whereas they don't think so.
M Gaylard, Bangkok, Thailand
Hi!
To lump African States in one basket and praise Ian Duncan Smith, wont get you anywhere. Nazi atrocities is not glorious past of Europe neither is the killing fields of Cambodia that of Asia.
But coming to point what is 15000 per cent inflation? If bread is costing say, 100 units of currency today, how much would it cost tomorrow at 15000 per cent inflation?
Kishor, Dar es Salaam, Tanzania
White people are treated the same as black people in Zimbabwe. However, Mugabe used the land issue as a weapon to win elections, knowing that they is a wide gap between the blacks and whites. Both white farmers and black farmers had there land taken. James Gough both white farmers and black farmers are still in zimbabwe struggling to earn a leaving. If the people of Zimbabwe (the black citzens) where againest the whites I am certain by now every white person would have left zimbabwe.
William, Dublin,
Quite frankly I couldnt give a dam after the way the white people where and are still treated.They made there bed now let them sleep in it.
James Gough, Dublin, i
Perhaps the European colonial powers were wrong to grant independence to these tribal thugs who now line their pockets at the expense of the poor people in their countries.
Doesn't Mugabe realise that there may be some medical treatment available for his madness. After all syphillis has been a cureable disease for many years.
richard, effingham, uk
A single brick now costs what ten years ago would have bought a mansion. Just like Britain then.
eric campbell, harrogate, uk
The UK government were so pleased to get rid of Mr Ian Duncan smith and install Mugabe in charge. when will the Western countries learn that africa is a corrupt hopeless land controlled by inhumane ignorant macho idiots. Bob Geldorf and Bono should get off there soap boxes and open there eyes. Africa is rich in resources but swamped in corrupt africans that have no regard for human rights only there own swiss bank accounts
philip walters, singapore, singapore