Mugabe thrives amid economic ruin

[Nutmegger]

Source: Financial Times

If Zimbabwe's economic numbers are at all reliable, President Robert Mugabe's 27-year rule should be nearing its end. Gross domestic product, already down 40 per cent since the government's accelerated land reform programme was launched in 2000, is declining this year at its fastest rate ever - probably about 12 per cent, say economists.

May inflation was 4,530 per cent, with most analysts predicting a June figure of at least 6,000 per cent. But because the authorities believe that the release of official inflation figures encourages businesses to raise their prices, inflation numbers are no longer being published. Instead, the government statistical office has been told to develop a new - sanitised - inflation figure that "better reflects the situation on the ground", said one official. Unofficial estimates put the June figure at 15,000 per cent.

The government's own figures put the poverty rate at 75 per cent (in 2003), while formal sector unemployment is estimated at 50 per cent. Ironically, both of these are improving because, according to South African estimates, 2,000 Zimbabweans enter South Africa illegally each day. Official estimates put the population at 12 million but it is believed to be substantially less - perhaps as low as 10 million. Accordingly per capita incomes are higher than estimated while unemployment is lower.

When Mugabe took over as prime minister in April 1980, the Zimbabwe dollar stood at US$1.50. Today, at the official exchange rate (Z$250 to the US dollar), it is worth less than half a cent, while at the much more realistic parallel rate of Z$100,000 to the dollar it is all but worthless.

Read more: http://www.gulfnews.com/opinion/columns/business/10140402.html

[Sen. Walter Sobchak]

1. the greatest irony of Mugabe,

Is that his enablers are wealthy white Rhodesians who went into business with Mugabe in the 80's to protect their assets. Some of Mugabe's white bag men are actually war criminals from the Ian Smith days. But I guess all is forgiven when there are Swiss bank accounts on the table.

[1932]

2. Who are they?

[mainegreen]

3. I love the end about Mugabe ordering money printed to subsidize consumer food and fuel.

Seriously. That stops working after a while. If no one accepts your currency printing more does nothing. Within six months, unless drastic steps are taken, we can expect there to be quit literally no economy in Zimbabwe. No commerce, no agriculture, no food, no fuel, no employment, no nothing.
What a thing to happen to Africa's breadbasket.

[Igel]

4. Of course he thrives.

He bribes the part of the populace he needs, and even if they're in bad shape he makes sure they can look down at others so they feel like BMOC.

And money's no problem, at least for him and his: He awards enough contracts with lots of bonuses to him to Chinese companies.

Lose China, see Sudan and Zimbabwe get better in short order.