Zimbabwe, the economy that suffered a lot from the hyperinflation that it faced for couple of years, Zimbabwe started as a strong economy in the beginning after it declared independence in the year 1980 considering their growth in many sectors of their economy like the tobacco industry and the production of wheat, and with a strong currency, the Zimbabwean dollar, which was considered to be more valuable compared to the US Dollar, but things changed after that when Robert Mugabe came, he firstly redistributed some lands and gave some farmers the lands that those farmers didn't have the experience and ability to deal with in other words they weren't so good in the farming sector after that in the late 90s the production sector in the country went down specially in the food sector which resulted in many negative results like having unemployment rate increasing up to 80% and life expectancy decreasing with having the food output capacity decreasing more than 40% and one of the excuses that the government used were the economic sanctions that were from Europe and USA. These events resulted in people losing faith in their own currency and also losing trust in their own government which was put into the list of "institutionalized corruption" and got the rank 176th. Black market played a role then in the economy and also the people of Zimbabwe started using other currencies in their own country, specially the US Dollar. Statistics about inflation rates in the economy were very surprising especially in the year 2008 and the changes that took place each month were very terrifying for the economy.
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Sallam Buhaimd,
ReplyDeleteGood article, and how you explained How Robert redistributed the lands which caused the reduction in live stock and agriculture supplies. But was it really the whole cause of the whole inflation? and how did he get in power anyway.
NOTE: Please please please add more fullstops xD there are only 5 full stops in the whole paragraph
Robert Mugabe really screwed up the country by redistributing valuable farmland via the Lancaster House Agreement, as it absolutely KILLED the nation's productivity. Zimbabwe went from being a net exporter of agricultural goods to a net importer, all because the land was expropriated into the hands of unskilled farmers who were basically a "bad bet" for banks. This caused the credit markets to collapse, which crippled development of these valuable natural resources. This ultimately led to massive money printing in order to monetize the country's ballooning debts, which eventually backfired in the form of rampant hyperinflation. People eventually had to carry bundles of virtually worthless Zimbabwe currency in wheelbarrows to the store just to buy a handful of items. While Mugabe's intent may have been good (and who really knows, given the kind of corrupt person he is), the results were disastrous. I would say that you could ask the average Zimbabwean how they feel about Mugabe and they would give you a negative opinion, but since he has a habit of stifling, threatening and silencing opposing voices, you probably wouldn't get an honest answer anyway. Good post, by the way, sorry for my long rant!
ReplyDelete--Jim
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