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Mugabe In Plea For S Africa To Bail Him Out Of Crisis
The Telegraph (UK) ^ | 7-19-2005 | David Blair

Posted on 07/18/2005 8:02:34 PM PDT by blam

Mugabe in plea for S Africa to bail him out of crisis

By David Blair in Johannesburg
(Filed: 19/07/2005)

President Robert Mugabe's destruction of Zimbabwe's economy began to strike home yesterday after he had to ask South Africa for a rescue package.

Unable to arrest the spiralling crisis or buy essential supplies of fuel, Zimbabwe has turned to its powerful neighbour.

‘Embarrassing’: Robert Mugabe has finally acknowledged the gravity of Zimbabwe's situation

Senior officials have visited South Africa to request an emergency injection of money likely to run into hundreds of millions of pounds.

About one third of Zimbabwe's economy has been wiped out in the past five years, putting it among the fastest shrinking in the world. Inflation runs at 164 per cent, the highest in Africa.

Mr Mugabe's seizure of white-owned farms, the destruction of commercial agriculture and the collapse of tourism mean his regime is incapable of paying its way.

Until recently, his response to this crisis was repeatedly to claim that Zimbabwe was enjoying a "strong recovery". Yet he has finally acknowledged the gravity of the situation by dispatching his key aides to South Africa.

A spokesman for South Africa's central bank said that Tito Mboweni, its governor, met a Zimbabwean delegation last Friday. Sources in Zimbabwe's capital, Harare, said this was led by Gideon Gono, the governor of the Zimbabwean Reserve Bank.

If agreed, the rescue package would place a considerable burden on South Africa.

John Robertson, an independent economist in Harare, said Zimbabwe needed about £60 million for fuel and £110 million for importing maize to fend off starvation.

Zimbabwe owes the International Monetary Fund £175 million - more than seven per cent of its entire economy. The next meeting of the IMF executive board will discuss whether to cast Mr Mugabe into isolation by formally expelling Zimbabwe.

Since electricity and raw materials also have to be imported, an overall sum approaching £500 million may be required. Unable to turn to any international organisation, Mr Mugabe has no option but to approach South Africa.

"The government find it too embarrassing and too difficult to try to make things work in the absence of outside help," said Mr Robertson.

"The scarcity of fuel means the country is nearly immobile. You can park anywhere in town these days because there are so few cars about."

Mr Mugabe's demolition of township areas has worsened the economic crisis.

With hundreds of thousands left homeless, his regime has pledged to build new houses to replace those its bulldozers have destroyed. But there are no funds available.

The Reserve Bank will have no option but to print money to cover the cost of new housing. By turning to the printing press to fund his budget deficit, Mr Mugabe will cause inflation to rise still more.

The IMF forecast exactly this situation when a team visited Zimbabwe last month.

"The budget deficit will increase markedly in 2005," it said. This would "fuel a sharp increase in the money supply, and hence inflation".

The IMF also criticised the township demolitions, saying they would "worsen shortages, contribute to lower growth, and aggravate inflationary pressures".

By December, Zimbabwe's inflation rate is likely to exceed 200 per cent and the economy will have been in deep recession for the fifth consecutive year.

South African President Thabo Mbeki's reputation has suffered because of his failure to criticise Mr Mugabe's excesses. If he now bails out Zimbabwe's regime and helps to keep the Zanu-PF party in power, Mr Mbeki's standing may fall again.

A United Nations report is due this week on the township demolitions. A critical verdict would make it harder for Mr Mbeki to help.

Yet if Zimbabwe slips further into collapse, the consequences for South Africa would be severe.

Mr Robertson said: "They could be upset by the outflow of refugees and the political difficulty of having a poverty-stricken neighbour becoming more chaotic by the day."

He said strict conditions should be attached to any bail-out. "It's easy for Robert Mugabe to make promises and very difficult for Thabo Mbeki to enforce them."


TOPICS: News/Current Events
KEYWORDS: africa; bail; crisis; him; mugabe; out; plea
Anyone who gives the beast another cent should be shot.
1 posted on 07/18/2005 8:02:35 PM PDT by blam
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To: blam

Drop dead Mugabe....commie scum.


2 posted on 07/18/2005 8:03:27 PM PDT by Stellar Dendrite (Support George Allen in 08!)
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To: Clive

Ping.


3 posted on 07/18/2005 8:04:03 PM PDT by blam
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To: blam

that feller's got some really clintonesque fingers


4 posted on 07/18/2005 8:04:04 PM PDT by InvisibleChurch (Mr. Chambers! Don't get on that ship! The rest of the book, "To Serve Man", it's... it's a cookbook!)
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To: blam

A good way to help his country would be to resign.


5 posted on 07/18/2005 8:04:18 PM PDT by Brett66 (Where government advances and it advances relentlessly freedom is imperiled -Janice Rogers Brown)
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To: blam

I can never understand communists begging capitalist countries for aid. Castro does it all the time. I mean, doesn't that just negate everything these Marxists stand for?


6 posted on 07/18/2005 8:06:33 PM PDT by fhayek
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To: blam

If South Africa offers him anything they should be sujected to an international boycott. I doubt that would happen since the "third world" countries and Europe seem fascinated by these despots.


7 posted on 07/18/2005 8:07:38 PM PDT by FreePaul
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To: blam

It wasn't that long ago that the libs were rejoicing in the take over of the White owned farms. Mugabe was there man.


8 posted on 07/18/2005 8:08:25 PM PDT by Parley Baer
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To: blam

And here he thought killing off all those white farmers would turn things around.... Funny how these things don't go as planned.


9 posted on 07/18/2005 8:09:47 PM PDT by workerbee (A person's a person no matter how small)
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To: blam

Maybe Bono and his G8 buddies can put together another "party for Africa" dance. Just a thought.

Holtz
JeffersonRepublic.com


10 posted on 07/18/2005 8:14:04 PM PDT by JeffersonRepublic.com (Visit the Jefferson Republic for a conservative news portal.)
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To: Stellar Dendrite

These ar a different kind of folks as are the Arabs. Best we have not become so civilized each problem can not be corrected. If we have... our standards... our way of life... and everything that makes a damn to us is lost.


11 posted on 07/18/2005 8:15:00 PM PDT by Bubba (Shoot low! The may be riding Shetlands.)
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To: blam; All
All I know is that I don't want ONE damned dime of US tax money sent over there.

For the most racist of reasons, blacks kept quiet when it was only whites who the regime was evicting from their land. At best blacks supported Mugabe and at worst, remained silent. Either way, they made this bed, now let em starve for all I care.

France shares part of the blame for Mugabe as well, fete'ing him at the Elysee Palace and encouraging his madness.

Let france rebuild that new **ithole! NOT THE US!

LET THEM STARVE!

12 posted on 07/18/2005 8:41:16 PM PDT by America's Resolve (Liberal Democrats are liars, cheats and thieves with no morals, scruples, ethics or honor!)
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To: Stellar Dendrite

Ditto------He's ruined what used to be a beautiful country.


13 posted on 07/18/2005 9:02:19 PM PDT by Mears (Keep the government out of my face!)
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To: blam

He better not us for any.


14 posted on 07/18/2005 9:03:26 PM PDT by Mears (Keep the government out of my face!)
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Comment #15 Removed by Moderator

To: blam

Send him a revolver with one bullet and the people a short piece of rope.


16 posted on 07/18/2005 9:30:20 PM PDT by mississippi red-neck (You will never win the war on terrorism by fighting it in Iraq and funding it in the West Bank.)
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To: blam

Send him a revolver with one bullet and the people a short piece of rope.


17 posted on 07/18/2005 9:32:19 PM PDT by mississippi red-neck (You will never win the war on terrorism by fighting it in Iraq and funding it in the West Bank.)
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To: America's Resolve

Wasn't it just last week Bush was off promising MILLIONS (or was it Billions?) of our hard earned bucks for these savages? He gives our money away like it was Monolpoly money. Isn't Congress supposed to vote on this FIRST? I hope they all vote NO!


18 posted on 07/18/2005 9:38:55 PM PDT by holyscroller (A wise man's heart directs him toward the right, but the foolish man's heart directs him to the left)
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To: blam
Mbeki may have no choice, if only not to have 600K+ refugees flood his own border. At least, that was the number
that was floated a couple of years ago.

What's scarier for your, er, our wallets, is that Namibia is impressed with the "land reforms", and Mbeki too,
is considering similar "reforms".

And of course, the SCOTUS did a number on the value of private property...

19 posted on 07/18/2005 9:42:45 PM PDT by Calvin Locke
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To: Calvin Locke
And of course, the SCOTUS did a number on the value of private property...

And the SCOTUS now takes other countries laws and customs into consideration in their rulings.

Maybe they will decide to remove a "few" white farmers here in America.

20 posted on 07/18/2005 10:07:22 PM PDT by RJL
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To: Brett66

"A good way to help his country would be to resign."

A good start to that end would be not to give his corrupt government a single dime.


21 posted on 07/18/2005 10:15:41 PM PDT by commonasdirt (Reading DU so you won't hafta)
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To: blam; Cincinatus' Wife; sarcasm; happygrl; Byron_the_Aussie; robnoel; GeronL; ZOOKER; Bonaparte; ...

-


22 posted on 07/19/2005 2:12:55 AM PDT by Clive
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To: blam; Clive

There's nothing more for him to steal.


23 posted on 07/19/2005 2:21:49 AM PDT by Cincinatus' Wife
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To: Cincinatus' Wife

His own people should hang him from the nearest tree.Probably has more money than God in a Swiss bank account.


24 posted on 07/19/2005 2:27:39 AM PDT by hineybona
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To: hineybona

Yes. He, his family and his cronies have looted the country.


25 posted on 07/19/2005 2:30:15 AM PDT by Cincinatus' Wife
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