THE SMART NEWS SOURCE | Feb 10 2010 09:27 | LAST UPDATED Feb 10 2010 09:27 |
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Zimbabwe's annual inflation rate soared to 11,2-million percent in June, state media reported on Tuesday, quoting figures from the central statistical agency. "Zimbabwe's annual rate of inflation surged in June to 11,2-million percent," the Herald reported. "It gained 9 035 045,5 percentage points from the May rate of 2 233 713,4 percent." Once a regional economic model, Zimbabwe is in the throes of economic crisis with an astronomical inflation rate and at least 80% of the population living below the poverty threshold, often skipping meals and walking long distances to stretch their income. Earlier this month, Zimbabwe's central bank chief urged a six-month price and salary freeze in a bid to rein in runaway inflation, with the country in the midst of an economic meltdown. "Zimbabweans must realise that the country is in a practically binding state of socio-economic emergency," the Herald quoted Reserve Bank Governor Gideon Gono as saying then. "As such, there is need for a universal moratorium on all incomes and prices for a minimum period of six months," said Gono. His proposal came as the bank unveiled on August 1 a new series of banknotes after knocking off 10 zeros from its currency. Talks Meanwhile, South African President Thabo Mbeki's failure to secure a Zimbabwean power-sharing deal at a regional summit on the weekend has dealt another blow to his credibility as his influence wanes at home. Mediation in the Zimbabwe talks could be Mbeki's last chance to improve his image before he has to step down next year after serving two terms. But the Southern African Development Community (SADC) was unable to get President Robert Mugabe and opposition leader Morgan Tsvangirai to agree to share power at the meeting, at which Mbeki took over as the 15-nation bloc's chairperson. Mbeki, accused by critics of being too soft on Mugabe, was left to repeat his longstanding line that no solution can be imposed from outside. "He could have scored a nice coup if he had pulled off a power-sharing agreement," said Mark Schroeder, director of risk analysis for sub-Saharan Africa at Stratfor. "Mbeki will revert to his lame-duck status." At home, Mbeki has presided over an economic boom but crime and poverty are still rife. A major crisis over lack of power generation has raised fears about the possible impact on the broader economy. Growth is slowing and unions say Mbeki's government has favoured business at the expense of workers and the poor. South Africa has one of the world's highest rates of HIV, with an estimated 500 000 people infected each year, and Aids campaigners for years questioned Mbeki's policies for addressing the pandemic. -- AFP, Reuters TOPICS IN THIS ARTICLE
Comments
Clearly the Mugabe regime has proved itself to be unfit to operate a cash economy. They are only fit to operate a barter system like you had in pre-literate primitive societies.
Jon Low on August 19, 2008, 10:01 am
i'm guessing you're a lot like bob barr -- grew up to find that a not-so-distant ancestor was black, and therefore you have to trash, in unnecessary ways, black people at every turn.
if you have US$, prices haven't moved very much. ditto for zambian kwacha. [of course, it says a lot about the state of your economy when *zambian* money is being traded as hard currency.] the inflation isn't particularly different from late 80s, early 90s brazil. but since you were educated in south africa, you wouldn't know that. [psst, brazil was run exclusively by white people until, fairly recently. while cardoso made jokes about having a foot in the kitchen, he probably did not, which means that lula is the first leader of the place in 500 years to readily acknowledge black ancestry, even though he doesn't have that much either. given that there are more black people in brazil than any country except nigeria... you should be badmouthing the place all the time. cmon man, spread around the racist lulz.]
Tokunbo Olowokandi on August 19, 2008, 8:09 pm
To Jon Low, please find out where the use of currency was first introduced. Just to correct you no your baises. The great material wealth of Great Zimbabwe may have been its downfall. After its discovery in the 1870s European adventurers arrived in droves. The rumor started that Zimbabwe was the legendary "Land of Ophir", the source of King Solomon's gold. You should know that Queen Sheba who took gold, spices and other precious goods was from Graet Zimbabwe, so when you talk of primitive, what do you mean. The Europeans could not believe that the African "savages" could build in stone. And so, unfortunately, not much is left of anything since the diggers, looters, and murderers have come and gone. So the Europeans brought poverty to these regions not wealth. About 150 of these great ruins similar to Great Zimbabwe exist today. Many of these have been severely impacted and almost demolished, at least 50, as a result of the hunger for gold by Europeans.
Yet, there are no ruins like these anywhere else in the world. The smallstone construction gives them immense power in the vast setting of Africa. Large building blocks, curiously, would be dwarfed by the settings, but the cumulative effect of thousands of small, pilled fragments is of concentrated human effort. It is also possible that Zimbabwe was a result of surplus wealth from the East African gold trade. External trade existed between Great Zimbabwe and Sofala on the southern coast of what is now Mozambique. Sofala was an important port where goods from India, China and the Islamic world were imported and then sent into the interior, which in turn exported products from inner Africa. Gold was the most sought after export, but other exports such as copper played a role also. Imports were primarily cloth, glass beads and ceramics. Items found at Great Zimbabwe include a glazed Persian bowl from the 13th or 14th century, Chinese celedon dishes, sherds from a Chinese stoneware vessel, and fragments of engraved and painted Near Eastern glass. Around the 14th century, Great Zimbabwe was probably in direct contact with the trading cities of the East African Coast. There was a sudden increase in building activity there at that time, as there was in the cities on the East African Coast. Some believe the decline of Great Zimbabwe during the 15th century was in direct relationship with the decline of coastal cities. Great Zimbabwe declined probably due to a number of factors including environmental degradation and a decline in the gold trade. The legacy of the region however attests to the ingenuity and political strength of its African ancestors, the Shona, and of Africans everywhere. So we know that you do not like the truth, for its known that all the wealth in Europe was taken from Africa, so they are trying to destroy Mugabe by making sure his economy collapses so as to say African do not do without Europaeans, history should not be ignored and we should learn from it.
Thuthukani Mkhize on August 19, 2008, 8:58 pm
In light of what (hasn't) happened, and Zanu's statement that it will be convening parliament and a govt of National Unity with Mutambara, I do hope you are looking forward to another 4 MILLION starving zims flooding over your border.
And looking forward to having the world watch SA try and deport them to a racist dictatorship deliberately starving them to death, and setting fire to them as "foreigners" and asking the rest for bribes for their paperwork, or they can work as prostitutes for all the tourists in the World Cup. Because this is the "African Solution to an African Problem."
Alisdair Budd on August 20, 2008, 5:24 am
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