Wednesday, June 20, 2007

What's Happening to Zimbabwe?

The nation of Zimbabwe seems to be going from bad to worse under the leadership of President Robert Mugabe.

Life in Zimbabwe has taken a 180 degree turn from the yesteryears. Its economy has reduced by 50% as compared to 10 years ago. During those days, the country was a net food exporter. The government has an unsustainable budget deficit of 50 percent of gross domestic product. Inflation rate has shot up to 3,700% now. The worrying part is 4 out of 5 Zimbabweans are unemployed.

Well, if you knows Robert Mugabe, then your life won't be as bad. It's the same old story in Malaysia also. It's the connection! In International Herald Tribune's article - How Mugabe Co. Prosper - it stated that "This system requires political connections and ensures loyalty. It demands economic schizophrenia, operating simultaneously inside and outside the market economy. Few legitimate businesses can turn a profit in Zimbabwe."

Situations as follow have happened in Zimbabwe:-
* University of Zimbabwe's students found it hard to pay their tuition fees or for notebooks. Worse still, sometimes you need to buy it at the black market.
* Official exchange rate for US$1 is 250 Zimbabwean dollars but on the black market US$1 can net you more than 40,000 Zimbabwe dollars.
* Price of cooking oil @ 90,000 Zimbabwean dollars.
* 1 in every 5 of its people has been afflicted with HIV/AIDS. Goodness me, works out to 20% of their population???
* Life expectancy has dropped all the way down to 36 years old only.

According to economists, Zimbabwe's economy could last for another 6 months if the same situation continues. Robert Mugabe still say that the economy could sustain by outside forces were trying to bring it down.

Sadly, even when they celebrates the 27th independence day, the public in general was trying to figure out how to purchase a loaf of bread @ 8,000 Zimbabwean dollars. And if you thought you were early to the petrol station, think again as hundreds were lining to purchase petrol which has ran into shortage.
Tags: Zimbabwe, Robert Mugabe, Economy, Inflation, Africa

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