Zimbabwe -- Mugabe Deals Another Blow to Hopes for Economic Recovery

Business Day (Johannesburg) via allAfrica.com ^ | July 25, 2002 | Dumisani Muleya, Johannesburg

[Clive]

ZIMBABWEAN President Robert Mugabe has dashed hopes of economic recovery by rejecting necessary reforms and policy shifts to facilitate the reconstruction.

Economic analysts said Mugabe's address during the reopening of parliament yesterday hammered the final nail in Zimbabwe's economic coffin.

Zimbabwe National Chamber of Commerce economist James Jowa said Mugabe's statements, in his first address to parliament since storming back to office amid controversy in March, were disastrous for the economy. "It's really unfortunate that he took that stance on economic policy, especially on the issue of devaluation," Jowa said. "What he has managed to do is to silence those in government who were debating issues and announced that he does not want to change his economic policies."

The issue of devaluation of the Zimbabwean dollar, which analysts say is overvalued by about 180%, has of late been dominating economic discourse in the country.

Finance Minister Simba Makoni and Reserve Bank of Zimbabwe governor Leonard Tsumba have publicly declared they want the local unit to be devalued from Z55 to US1 to a rate which takes into account inflation differentials.

Zimbabwe's inflation is currently 114,5%. The parallel market exchange rate is now Z800 to US1 after a recent crush of the local unit to base currencies. However, Mugabe has come out with his guns blazing against his financial authorities. "Devaluation is sinister and can only be advocated by our saboteurs and enemies of this government," he said in a thinly veiled attack on Makoni and Tsumba.

"Devaluation is thus dead!"

Mugabe's remarks underlined a growing rift between the hardliners in government who favour a return to siege economic policies and the reformers who want change.

Last month, Mugabe told a cabinet committee on financial and economic affairs private meeting that devaluation was not a policy option as he attempted to reassert his command economics.

[Clive]

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[yendu bwam]

Robert Mugabe - the one man wrecking crew of a potentially great and beautiful country. He represents an amalgam of the worst traits of African leaders, all wrapped up into the mind of one small man. He is a coward; a man with no honor.

[Voltage]

So the 'kill whitey' policy is a hinderance to the economy?

[yendu bwam]

So the 'kill whitey' policy is a hinderance to the economy?

Of course - along with just about everything else Mugabe does.

[LarryLied]

Mugabe is only part of the wrecking crew. Ari Ben-Menashe is in charge of public relations. The Beit Alfa Trailer Co. provides the heavy equipment. Van Hoogstraten and others have provided the financing.

[yendu bwam]

Mugabe is only part of the wrecking crew.

But he is the leader. How sad. He is rapidly going the way of Mobutu, Amin and the Emperor of the Central African (Republic). He has become a monster.

[LarryLied]

Slumlords have pushed Mugabe on the country for decades. If it wasn't him, they would get someone else to loot the nation. Just watch the vultures who flock to pluck at the carrion when the country is finished. Big bucks are to be made in leveling a people.

[yendu bwam]

Slumlords have pushed Mugabe on the country for decades. If it wasn't him, they would get someone else to loot the nation. Just watch the vultures who flock to pluck at the carrion when the country is finished. Big bucks are to be made in leveling a people.

Ultimately, it will be up to good and noble Zimbabweans (both black and white) to demand a change for the better. But it will be tough. It would be like leading the American revolution. The odds will always be against such. But hope never dies, either.