Jan Raath in Harare
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Zimbabwe’s currency has fallen to record levels, with one million Zimbabwean dollars buying a single US dollar (48p) and inflation reaching 8,000 per cent.
The bleak data was announced as people in the capital Harare struggled to cope without electricity for the third day. “We closed our business today,” said a woman who helps to run a major petrol supplier. “We just can’t operate like this.”
The National Blood Transfusion Services said that it had been unable to test blood since Tuesday. “We are in serious trouble,” said a doctor.
At independence in 1980, the Zimbabwean dollar held parity with the US dollar but the currency has suffered from the recent economic policies of President Mugabe; at the beginning of this year it was $Z2,800 to one US dollar and ten days ago $Z500,000.
President Mugabe has struggled to keep inflation under control and in July ordered businesses to halve their prices to alleviate the country’s woes. The order resulted in the arrest of about 10,000 business people as thousands of police officers raided companies, shopping malls and markets to take goods marked above price control levels. Now the supermarkets are bare and it is almost impossible to buy food.
Although the inflation rate slowed marginally in August it rose to 7,982 last month, according to official statistics, which are regarded as highly conservative. “It shows the lunacy of their belief they can legislate against inflation and bring it down at the barrel of a gun,” said Rob Davies, an economist.
Officials in Mr Mugabe’s ruling party reportedly expect him to sign a law that will force all foreign-owned companies, including local subsidiaries of Barclays and Standard Chartered, to sell 51 per cent of their equity to black Zimbabweans.
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Hands off Zimbabwe! Things will sort themselves out eventually. Western interevention will only delay the inevitable and prolong the suffering. Some of Africa works, and some doesn't. The people there need to forge their own destinies. The population explosion in Africa puts pressure on everything.
It has nothing to do with the 'white man's burden' or oil or anything. Horrible things happen, but the people voted for the government they have, they must live with the consequences.
Scott S., Sacramento, California USA
So Mr Bush, Brown, when are you going to do something about a real dictator ??? Oh I forgot, there is no oil involved just poor downtrodden people !
Peter, Vancouver,
A disgusting state of affairs has been allowed to happen not only by Britain and USA but also by the Zimbabwean people themselves and they will do nothing to resist the Government. Come the Elections scheduled for 2008, wait and see, they will re-elect Mugabe again. David
Gonzo, Herts, UK
Why has the world community not taken action to ensure that the Lancaster House agreement of the Smith regime and Black Rhodesians is maintained.
There is no controlling body capable - we can only wait for chaos to achieve the demise of this once prosperous country.
Walker, Witham, Essex
What a beautiful place Zimbabwe has been. To go there when I did, meet people,yes a tourist but one whose eyes watered when leaving africa. I knew of course then that farms were being taken much of what is happening now was beginning then. My parents had lived there, worked there and I'd heard much. Theres some mineral wealth, bit of this bit of that, nothing like enough to get countries like GB and USA wanting to dip in with troops. Not like say Iraq. Now its painful to watch the diabolical Mugabe and his paid up relatives and minsters pocket whats left, and how! they pocket, murder, bully and ruin and we do nothing. Sanctions? bah! Suprised no ones taken him out yet. Wish they would.
All the fuss we made about Saddam. We were under the impression the desert was full of doors there with missiles in. Not so we found out. Well we know already for sure what Mugabe is doing and its all Saddam was doing. Killing. Time to stop it?
mailee, london, uk
Sometimes I think the British government should dispatch troops to Zimbabwe instead of Iraq. After all, it's that the British government handed over power to this dictatorial rogue, Mugabe.
James Wong, Macau,
Alton H - better to get out of the UK & rush off back to Zimbabwe - surely a ' literate and intelligent Zimbabwean' could do much more for his/her beloved homeland with its much maligned but patently obviously well loved President,Bob Mugabe' by actually being there with his English Pounds???
Just think how much your fellow citizens would appreciate your help & commendable citizenship!
Wow ! I must have been dreaming!
John Rellie, Bicester, UK
well if afriaca keep going way it is in 100 years time they just be a countient without law and order and where they just kill each other and any white people there which beyund a joke for 21st century.
James Lawton, pontefract, UK
In 100 years time Africa will be the most powerful bloc on the globe. Look at what's happening to individual African businesses and families. A foundation is being built here- and thanks to the transgressions of our forefathers, the world will continue to underestimate us- as they did China and India.
And all shall have their time in the sun.
FJ Tichawangana, Harare, Zimbabwe
In one hundred years time Africa will be noted as a deep dark and unknown place again. Colonial rule ended 50 years too early and the madmen and tyrants took control. These countries needed much more guidance and control than what they were given.
Yes, some of the white Rhodies lived like princes and treated the blacks like servants, but it seems to me that is was better way for all to live than how it is now.
Pity South Africa, it will be like Zimbabwe in two decades.
Brett R, O'hara, PA USA
luke the spelling is Signiorage. Inflation is not ONLY caused by that. In Zim's situation the casual printing of money of cause has a big inflationary effect, that coupled with a lack of production, is causing this massive inflation. The fixed exchange rate as with anything fixed, (eg. price controls) in most cases causes a shortage of that good, in this case foriegn currency. Forcing a creation of a black market where that good can be obtained at higher and more realistic prices. To simply stop printing money will not solve the problems. Zim needs to start producing again, in all industries agriculture, mining, etc. But to do that those industries need access to forex. Zim need to float the currency, Zim needs to return to a free market economy, that would end the black market for forex and at least the central bank can begin to re-build their foreign currency reserves. And to have investment back in the country Zim needs to have democracy and laws, to bring back investor confidence.
Pamberi, uk,
James Watson 1, egalitarians 0...
D Anderson, Kent, WA USA
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