Jan Raath in Harare
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Word got out on Monday night that the warehouse on the outskirts of Harare would be selling a small consignment of cement at the state-enforced price of Z$150,000 (40p) a sack.
When The Times arrived on Tuesday morning, there was a one-kilometre line of cars. The drivers had spent the night there waiting for the building supplies. No sooner had a lorry arrived carrying a cargo of 600 bags than uniformed soldiers and police turned up at the warehouse.
“They took charge. They told people to get in line,” one witness, who gave his name as Willie, said. He recounted how the soldiers distributed sacks of cement to a few customers at a price of Z$150,000. “Then the soldiers and police drove their own trucks in and took more than 100 pockets [sacks] at the same price. They are going to sell on the black market for Z$1.5 million,” he said.
As soon as the men in uniform were gone the staff began to sell the cement at the higher black-market rate of Z$1.5 million, but only to a select few who had personal contacts at the warehouse. Not until midday did the queue’s nerve break and the vehicles peel off. The scene was one of the unforeseen consequences of President Mugabe’s month-long attempt to smash inflation by forcing businesses to halve their prices. Those responsible for enforcing the price cuts are openly running a black market in the goods. Meanwhile, ordinary people cannot get goods and prices are going up faster than before.
The last official inflation figures were for April, when the annual figure hit 3,700 per cent. Data have not been released since, but Christopher Dell, the outspoken former United States Ambassador to Zimbabwe, predicted that President Mugabe would be forced out of office within six months as a result of uncontrolled inflation.
The business sector immediately became the new enemy, denounced as “agents of regime change”, forcing up prices deliberately to stoke up discontent that would spill over into mass street violence.
About 6,500 businessmen have been arrested since “Operation Reduce Prices” began. Shops dare not openly deviate from official prices that are below procurement costs. This week magistrates were jailing minibus operators for a week for each passenger that they charged above the official limit.
“Price controls that are being enforced are likely to exacerbate shortages and, ultimately, fuel inflation,” the International Monetary Fund said this week. If the current trend continues, “year-on-year inflation could well exceed 100,000 per cent by year end”. Commuter transport has withdrawn from the roads effectively. For weeks supermarkets have been without maize meal, the national staple, meat, chicken, eggs, milk and cooking oil. Yesterday even vegetables were running out.
The United Nations food agency appealed for £60 million in expanded food aid for Zimbabwe yesterday and pledged to assist about 3.3 million starving citizens. “On top of panic buying, the problem is fuel,” a supermar-ket chain executive said. Since the Government fixed the price of fuel at Z$60,000 a litre, fuel imports have dried up. “The manufacturers can’t deliver. They say, ‘Come and fetch your orders’, but we can’t,” he said.
Despite repeated declarations that “there is no going back on the war on prices”, the evidence is that President Mugabe is faltering. On Tuesday the central bank issued a Z$200,000 note, worth 50p at the unofficial rate. Previously the highest denomination was Z$100,000, which could buy a mug of black-market petrol.
On Monday the Government reversed a ban on the import of food-stuffs, an attempt to control the illegal currency market that would have had dire consequences for millions of Zimbabweans who survive on cross-border trading. At the same time it was announced that private abattoirs that had their slaughter licences revoked as punishment for refusing to sell meat below the cost they bought it at were going to be relicensed.
President Mugabe is pressing on with another key strategy for economic survival: printing money. “Where money for projects has not been found, we will print it,” he said last week.
“It’s like someone with lung cancer smoking 100 cigarettes a day to complement the chemotherapy,” a Harare business executive remarked.
Losing value
Eleven zeros adorned the Yugoslavian five hundred billion dinar note in 1993. As prices increased at a rate of 5 quadrillion per cent by 1995, the Government moved rapidly from dinars to new dinars to new, new dinars and finally super dinars
Zaire's inflation peaked at 13,773 per cent in 1994. The population turned to the black market, which grew larger than the formal economy
Germany financed its First World War effort with borrowing, assuming defeated enemies would pay. When it could not repay itself, it printed money, driving inflation to 3.25 million per cent
In 1985 President GarcÍa announced a halt to repayments on Peru’s debt. Creditors severed links with Peru, inflation spiralled and real salaries halved between 1987 and 1989
Sources: San Jose State University; IMF
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I have a problem. I believe it is wrong for one country to invade another country because it has a poor human rights record. If a western democratic country did that, they'd have invaded Albania, China, North Korea, Indonesia, Iran, Turkey and Vietnam. The only country that has the power to invade some of those countrues is the US, and the US doesn't invade countries which either have nuclear weapons, large armies or don't have anything it needs (like oil) anymore. It also doesn't invade fellow NATO members like Turkey. Noam Chomsky has shown that US Foreign Policy is not only immoral but blinkered and insular. For example, it is estimated that one third of all adults from East Timor (that's 300,000 adults) lost their lives as a result of Indonesian actions between 1970 and 2000. America said almost nothing about this genocide and certainly never contemplated invading Indonesia. But when only 5000 people get killed in two large buildings in the US ...
The United Nations is the key.
Rod Dingwall, London, United kingdom
Apart from the human tragedy in Zim, the biggest problem is that Mugabe lends justification to those who say that Africa is a basket case. The real problem is our interference from the West and solutions forced on Africa. Meja Zimondi is absolutely correct in his analysis & knows his history ...The UK reneged on the Lancaster House agreement. Abel Muzorewa would have made a great leader in Zimbabwe, supported by black and white. Now look at the mess we are in....and at 83 Mugabe looks younger than ever.
GK, Calgary, Canada
John Iteshi's (a Nigerian),views are unjustifiable.Saying "If the white world decides to recolonise Black people, I am sure that majority ...........".Why ?.This is an illustration of ignorance and self mistrust..I would ask this question"If a herdman lose one of his sheep,it goes astary and he eventually find it prayed for by hyena, whose blame will that be? In this situation you can not blame the carnivore .Do you remember well the speech that,youthful Mugabe the then Prime Minister of Zimbabwe gave in his Inagural Speech at Rufaro Stadium in 1980.If not,check out for work by David Cusworth,who has series of such footage which may refresh your memory.Mugabe has every blame on his shoulders.
Blacks have prospered and demonstrated their capabilities in every aspect of life..We need to believe in ourselves as blacks.Selfishness and lack of moral understanding on the basic principles of democracy is the problem.We are our own enermies not "Masters" as you believe.
Gift. K. Mawire, Gosport, UK
Mollen if there was no cold war we could still be having Ian Smith as our leader today. Its difficult for Zimbabweans to rise up against a brutal dictator without any military backing.
During the Simth era we had the Chinese and the Soviets backing the liberation struggle not because they liked blacks or sympathised with your plight but because they were opposed to the West and they were fighting an indirect war with the west.
Now there is no cold war so the poor blackman is left hung out to dry. If the leader of the opposition is brutalised and thrown in front of the world media for all to see and the world sit quietly without doing anything what chance is there for the ordinary man?
The world doesnt care anymore I really wish the cold war could come back. Maybe just maybe we might have another super power to run to
George Hove, Harare, zimbabwe
Zimbabweans will have to sort themselves out on this one .Loooking back when they got tired of the Smith Regime they sorted themsevs out ,so with this issue it will be just a matter of time.
moleen ndongwe, woking/surrey, uk
Please allow me to sit on the fence on this one.
When 50 000 Matebele were murdered in cold blood by the North Korean trained Gukurahundi( 5th Brigade) , USA and Britain were silent. And he was never called a Dictator or Murderer, no sanctions. No! the truth is their kith and kin in Zimbabwe were not touched and still enjoyed the same lifestyle as during the colonial and UDI days. They controlled 75% of the economy and two thirds of the arable land. Britain made a monumental error of not fulfilling part of the Lancaster House Agreement (funding land reposession)that indirectly secured the continued comfortable lifestyle of whites. Mugabe hit back by sending War Vets to lead in repossessing farms. Only now did the West raise their voice and power of sanctions. Now he is a dictator and failed African leader. Yes they are corrupt and some of Mugabe's policies disturbed the economy but to respond when it suites you NO! Now the country is on its knees, do we blame the black govt only?
Meja ZIMONDI, dallas, TX
Leave the west alone. They are enjoying the suffering in Zimbabwe while the 'bet' on 'what next'. they are the ones who killed the country in the first place.
Donald, birmingham, uk
If the white world decides to recolonise Black people, I am sure that majority of ordinary black people would welcome it. We have failed in all respects to prove that we are not inferior by building from where the colonial masters stopped. The fact that there is no successful society of Black people anywhere on this planet means we have failed to prove that we are not inferior! As an enlightened black man, I will never shy away from the fact that my people are a failure!! However, I believe we can succeed like the Asians, only if we could decolonise our minds. The greatest enemies of Zimbabwe today are the minority of colonial idiots in the country who are sabotaging their economy in order to please white supremacists! I will never agree that Mugabe is the worst of the worst simply because the white world is saying so. If our white masters really care beyond keeping us their perpetual slaves, they must apply the same standard for democracy and good governance for all Black societies.
John Iteshi, London, UK
The Western world has let down the people of Zimbabwe badly. It is common knowledge that if the West really want Mugabe out they will get him out tomorrow, so why dont they get him out .. Mugabe is serving their ulteria motives and the West want him there to perform a silent genocide.
The West know that hunger fuels disease and in a Country like Zimbabwe where there is AIDS hunger is a major fuel for the spread of HIV. And who is dying from HIV? Its the blackman. AIDS is doing what the West failed to do with their Family planning projects and its more convinient to have a leader like Mugabe who causes untold suffering to his own people while the West watches. The West is beyond reproach on this one. I beg to ask if the suffering that the people of Zimbabwe are going through was being experienced by a White country would it have been tolerated? Hell No.
But here we have Black on Black so its convinient to turn the blind eye when 3500 people are dying every week from AIDS
George Hove, Harare, zimbabwe
Mugabe has beaten his people into sheep-like submission. Even in the face of almost unbelieveable poverty and hunger, no one inside or outside Zimbabwe seems able to bring about any change in the government.
Joseph Rust, Salt Lake City, Utah, USA
Cry the beloved country - when is the regional superpower, South Africa going to take responsibility for sorting out this catastrophy which has lead to a tsunami of refugees crossing the Limpopo? Soon there will be more Zimbabweans in South Africa than those left in Zimbabwe. This unfolding man made disaster is beyond the capability of Zimbabweans to resolve themselves. Zimbabwe would be far better of as an integral part of South Africa. South Africa must annex.
Arnold Ward, Weybridge, Surrey, UK
Zimbabwe was once one of Africa's richest and most prosperous countries under ian Duncan Smith, a zimbabwean born (Rhodesia at the time) national. But he happened to be white so the politically correct west (britain in particular) forced him out and Mugabe in. Well done..
philip walters, rochester, uk
why is the un failing to take control within the old man
jeff, gabz, botswana
Mugabe is an exponent of adverse racisme.
Shame on S.A. for upholding his regime - they should know better.
When Mugabe falls - and he will - they will probably ensure his safe retirement, as the Saudis did Amin.
Mugabe has been brain dead for years.
If S.A. doesn't realize this, their leadership must be on the same route.
A Danish M.P. once proclaimed: "If that's a fact, I deny the fact". He now tends a hot dog stand.....
Gerald B., Viborg, Denmark