Jan Raath in Harare
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Zimbabwe’s economic meltdown is gathering pace, with inflation spiralling to almost 15,000 per cent, according to figures leaked yesterday.
The 14,840 per cent annual inflation in October was nearly double what it was in September. Prices between September and October rose 135 per cent.
President Mugabe told state media that “Zimbabwe will not collapse, now or in the future,” even as his strategy for beating inflation with draconian price controls lay in ruins.
In June Mr Mugabe ordered businesses to slash prices to below what it cost them to stock shelves. Annual inflation has since shot up nearly 10,000 percentage points. “I am speechless,” said one economist. “I cannot get my head around these figures. They are so enormous.”
But the consequences were entirely predictable. Price controls and printing money are primary causes of inflation. “It is ludicrous. The economy hasn’t collapsed for him and his ministers in their Hummers and their Mercedes-Benzs. But they have made it collapse for everyone else.”
The latest figures were published in Harare’s privately owned Zimbabwe Independent, which said that they had been leaked by the state statistical office. The department had been promising to issue them since Monday. On two previous occasions this year the body has been forced by Samuel Mumbengegwi, the Finance Minister, to stifle its embarrassing inflation numbers.
Other countries stricken by hyperinflation have coped by printing vast quantities of banknotes with rapidly increasing numbers of zeroes.
In Zimbabwe, however, the phenomenon of “Mugabenomics” has delivered a three-headed monster — exponentially rising prices, a critical cash shortage, because the Government regards adding new rows of zeroes on the banknotes as an admission of defeat, and virtually nothing to buy in the shops because price controls have destroyed the retail trade.
The Z$200,000 (7p) note, the highest, has almost disappeared. This week banks were issuing batches of Z$20 million in wads of $500 bills stuffed in plastic bags.
Hole-in-the-wall cash dispensers are now largely redundant because it takes only four customers to empty machines. Yesterday banks were limiting customers to Z$10,000 a day.
Cash itself has become a tradable commodity. Swapped for products such as fuel and beef, it is attracting a 20 per cent premium to its face value.
The search for cash is an unrelenting daily ordeal for Zimbabweans, who were paying Z$1.6 million for a bus fare to and from work yesterday, Z$800,000 for a loaf of bread, and Z$700,000 for a pint of beer.
This week the Government said that its price controls would be stepped up. Economists fear the move will exacerbate shortages and increase inflation further.
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Mr. Mugabe lives in cloud cuckoo land. Sadly, his people live in Hell. The only way he keeps going is by some very dodgy funding from some very dodgy people. He won't stop until Zimbabwe is totally wasted. Had things been the other way round, he could have made it one of the most powerful countries in Africa. Once a bread basket, now a waste land full of egoist leadership. An utter travesty.
Keith, Newport, Isle of Wight
All fiat currencies are doomed to the same fate.
Don't believe for one second that "it cannot happen here!"
Ball, Oakridge, OR
Ah, the way racism rears its ugly head... So Mugabe will built [sic] a very strong black state in africa controlled by black africans [sic]. All I can say is he's off to a very slow start, and judging by the mention of 'black', white Africans will be excluded from this stunning success story.
Rod Baker, Cape Town, South Africa
for Rusununguko; I just got back from a holiday in Zimbabwe; I must have gone to the wrong country. I can only presume you are joking when you refer to a "very strong state". I saw hungry people queing for basic foodstuffs. Even the cooking oil had run out. You could buy petrol only on the black market. I was amazed at the fortitude of the population. Maybe you just haven't been back for 30 years? Smell the coffee mate.
GK, Calgary, canada
All this while Mugabe is personally ranked among the richest men on the African continent. His European bankers have many reasons for protecting his wealth, all of which have absolutely nothing to do with justice or the people of Zimbabwe. His human-rights atrocities not only go unpunished but fuel his panic to stay in power. A war-crimes trial in The Hague is not part of his plans.
Poor Zimbabwe has no oil that would make it worth invading. So the world will watch with detachment (as if on safari at an African waterhole) as the scavengers fight over the carcass .
Charles, Cape Town, South Africa
On the comment that Zimbabwe is an "African problem' and that basically the rest of the world should butt out: So then is Israel and the Palestinians a Mid East problem and the rest of the world should keep quiet about it! As for North Korea and Iran and Afghanistan et al ...
Brian, Jerusalem,
They can stew in their own juice - Huge, Graham in Aussie - too right guys. I too hail from there. Jessee, you're deeply misinformed - practically every country in Africa is desperately poor, malnourished and racked with corruption. It just isn't reported that much. Colonialism bought an end to systematic inter-tribal slaughter, institutionalised starvation, slave-trading (yup, driven by blacks) tribal subjugation, and rampant disease. Pretending that Africa belongs to Africans (and they must destroy it in the way in which they wish by the simple virtue of the colour of their skin) is the same sort of crass mentality that that attaches to racism in the first place. The world's land is distributed amongst those groups largely on the basis of who conquered it. Nothing wrong with that - it worked well till 1945, then fell apart as the age-old will to rule (sometimes called a spine) snapped off duty like a pistol shot.
Marc, Bloemfontein, RSA
By the time of the Lancaster House talks, when the best Prime Minister Britain never had was sold down the river by western politicians, everybody new what was coming.
L. A. Dietz, Palma de Mallorca, Spain
Arnold, surely South Africa can turn the lights out on Mugabe any time it wants to? Presumably to Mbeki, supporting this hero of African independance and symbol of anti-colonialism has a higher moral value than putting bread in the mouths of the Zimbabwean population. So it goes.
Robin Laundon, London, UK
The solution to Zimbabwe's problems will come when Robert Mugabe and his cronies are exited from power. If the people had fair elections, he would have gone a long time ago and this problem wouldn't exist today!
Shane, Bishops Stortford,
Yes Zimbabweans are defiantly lying in the bed that they have created, and working to sort their mess out. For example they have been channelling (through local banks) more of their very scarce finances towards agricultural mechanization and other inputs in order to avert the much anticipated mass famine. However, as witnessed in this publication a couple of days ago, these efforts displease the majority of Western commentators on this forum (several of whom have emotionally declared their intention to close their Barclays bank accounts). Yet, the same commentators lament the economic decline and mismanagement in Zimbabwe. It is this kind of Western ambivalence on Zimbabwe which fortifies sympathy for Zanu PF's ideology and strengthens the vision that Africans have for their own destiny.
shumba muroori, London,
This is just great. I wring my hands together every time I read the ever more dire news from this basket case country I grew up in. Imagine my unbridled delight when I read these comments written by munts who 'took the gap' suggesting that this is all the West's doing. What a joke! As long as there is a proportion of these 'head in the sand' apologists for that murdering dictator, the situation will continue to slide down the ever more slippery slope... Oh Joy!!!
Graham , Sydney, Australia
Perhaps Gilbert is right and "this economic conflagration was hatched in the bellies of western intelligence agencies". In other words, Mugabe is a tool of Western intelligence, put in to destroy Africa's food basket.
It's nice to see that the CIA did a good job for a change!
M.Lester, London, UK
Sorry, Michael, but so far as I am concerned, Zimbabwe can lie in the bed it made. They "cast off the yoke of imperialism" and look where it got them.
Huge, Bedford, UK
Gee...good thing they got rid of the Smith dictatorship!!
Eric, London, UK
USA and UK invade Iraq which brought down a dicatator that used chemical weapons, executions and torture against his own people.
The world condemn us.
Then demand we do womething to bring down Mugabe.
What would you have us do? Invade and occupy.
Great Britain has no interests in Zimbabwe. I dont want to see my son sent to Africa to die for a people that havent even attempted to help themselves
Phill Barlow, The Wirral, England
Yeah, the UK meddling in the affairs of an ex-colony which doesn't want our help - that'll go down well.
Ben, Buxton, UK
Mugabe has made it an issue of white man. All whites out and their land confiscated.
They can do it themselves! Well they can't up till now.
If whites go in and "rescues" the situation, then it can start all over.
They have to hit rock bottom, get rid of Mugabe and work themselves up to the level they want to live with.
Jens
Jens Erik Bech, Virum, Denmark
To arthur in australia.....Africa to remind you of geography has more than 48 countries most ruled by black people. Most of them are not at war and are not starving and dont need any salvation let alone white mans rescue. If you could travel a bit and not only rely on what you see on telly you would see a different africa....happy children and people going on happily with their life. Most have seen the mess that interference by foreigners including colonization brought and dont need help thanks. Zimbambe will sort itself out...if only it was left alone. It seems there is almost some sort of weird cerebrations in western capitals the more it goes down...so as to show the white farmers whose ancestors stole land were wronged after being chased away for refusing to share what was not theirs. Can you imagine africans coming to england and taking over 75% of it? Would you sit back and smile hey?
jesee itotian, newcastle, uk
The fact that Gilbert describes the Mugabe "government" as legitimate says it all. Deluded to the last (and writing from Swindon, I note, as he decries MI6)
Dave, Woodbridge, USA
Both Gilbert and Arthur need to realize this is not the time for racism.
Arthur needs to be reminded that the first instance of hyperinflation in the 20th century was under "White Rule" in Weimar Germany, 1923. Since then, families and individuals in Greece, Hungary, Yugoslavia, Bolivia, Peru, and Argentina have had their savings wiped out by hyperinflation. Bad economic policy, incompetence, and tragic political legacies are colorblind.
Gilbert needs to stop pointing the finger at predominantly white Western governments. It takes courage to face up to the consequences of our actions, whether our own actions personally or those of someone in our own race/ nationality/ ethnicity. Robert Mugabe is the one man most responsible for the tragedy in Zimbabwe today. We will get nowhere if black Africans close ranks to claim it's not his fault--though I can understand why comments like Arthur's would make them want to.
Jim, Cambridge,
Gilbert, this is not the fault of MI6 or the CIA, let alone the FBI (which deals in domestic issues inside the US in regards to criminal investigations). Sadly, the once "bread basket" of Africa has fallen prey to the stupidity of it's authoritarian fuhrer, Mugabe. The ZANU-PF belongs in the pantheon of incompetent fascist political organizations, right along the neo-Conservative Republicans and the National Socialist Workers Party (aka the Nazis). Zimbabwe did not have to become the African version of the Wiermer Republic. He should've left the farmers alone, he should've fostered a friendly atmosphere for investments, and he should've not burnt his bridges
John B., Chicago, US
IF ONLY Zimbabwa had masses of oil.
The nation could apply to the White House to be declared an "Axis of Evil" nation and the US/UK/AU could invade, bomb and torture the citizens till the place looked like Iraq.
Martin Mells, Lewes, Sussex.,
I have said this before President Mugabe will not be removed from power because of economic subbotage by the western companies in Zimbabwe. He will built a very strong black state in africa controlled by black africans. Zimbabwe is the first nation in africa to produce bio-fuels,100% vegetables seed renewable energy. Zimbabwe will struggle maybe for some months or 1-2 years but it will emerge very strong.
Rusununguko, London, UK
The M16, CIA and FBI must be feeling satisfied that their attempts at modern-era lynching of black people is finding fruition. This is a sad tale of British and American governments' racism against a predominantly black state. We are not amused that this economic conflagration was hatched in the bellies of western intelligence agencies to undermine a legitimate African black government!
Gilbert Phiri, Swindon, UK
Geoffrey - Africa does not deal with its problems - that's the problem and why Mugabe is still in power and the poor continue to suffer.
Clive, Lichfield, England
They wanted Black Rule - They sure got it!
Arthur, Melbourne, Australia
I have made countless pleas to the Border and Immigration Agency including former Prime Minister Blair to help speed up my immigration application which has been outstanding for 2 years. In the meantime I can not work and as a result help my family back home. When host populations talk about being "swamped" by immigrants, this is the reason why you find us here. This is the human face of the crisis. It's no good if the host nation does not take practical steps to help people like myself but confines itself to lip service and megaphone diplomacy. It's a tragedy all round.
Tony Campbell, London, UK
To reassure you, Geoffrey from Sydney, Africa has been dealing with it with no interference. Is this the result you crave? Thought not...
Roddy, Whangarei, New Zealand
My friend returned from Zimbabwe...he saw lines wrapping around buildings with people waiting for food. This is a moral issue - we can not sit back and watch our fellow humans die in disgrace and pitiful conditions and make the excuse that "a soverign nation" can do what it wants - the world has a responsibility to intervene in humanitarian catastrophes, whether it is genocide or economic genocide, because people die either way.
michael, Norfolk,
As a Zimbabwean I can assure readers that Africa is incapable of dealing with Zimbabwes crisis which demands international intervention if total collapse into warlordism is to be avoided..
Arnold Ward, Weybridge, Surrey, UK
Zimbawe is an African problem. Africa must deal with with no interference.
Geoffrey, Sydney,