The title could also say: or how to starve the people of a country. An extraordinary situation is developing in Zimbabwe. Shops have been told by Pres Mugabe to cut the prices of their goods by half. If they do not comply they will be arrested and charged with whatever law Mugabe has passed to cover this little happening.
As with previous bizarre economic and political dictates issued by the Pres, a variety of law enforcement agents are encouraged to follow through on the latest edict. Of course, it reaches the point where the enforcers are not necessarily members of the legit, if legit is the right word, inflation police. Criminals join the party, asking shop keepers to sell them goods at reduced prices. In this situation it must be totally impossible to distinguish between the police and disguised criminals.
What is really interesting is the fact that the big ticket items have been snapped up as well. One would have thought that the decree would be for the benefit of the poor, unemployed and starving masses and that food would be fought over. But the riot police were patrolling Makro which had to close its doors early to be able to process shoppers. Makro does sell food in bulk, but has larger areas offering electronic and white goods, clothing, DIY and sports equipment amongst other items.
One also might want to ask where the money is coming from? Suddenly there are thousands of shoppers wanting to get into shops such as Makro to buy expensive goods. Is it possible that Zimbabweans are stashing money away? How much money is being sent home by Zimbabweans living across the world? It seems likely that clever folk are keeping this money in hard currency until required for purchases. Nobody saves Zimbabwean money, at an annual inflation rate of 3000%, it would be pointless.
A few years ago, Mugabe stole farms from the predominantly white farmers. This was supposedly to take from the wealthy and give to the poor. The lushest farms went to Mugabe and his cronies, the rest were left for poor people to squat on. With no skills, resources and assistance these poor folk were in no condition to make a living by farming.
As with the farm story, the halving of retail prices is not going to benefit the poor. If it continues it will mean that shop keepers will have to close their doors. Eventually all business will be traded on the black market. As an economics case study it has been interesting to observe how long it takes for the economy of a country to totally fall apart.
The real tragedy is that the ordinary people of Zimbabwe will be the ones starving and destitute. Big business will shrug off the loss and close doors. They will be back when the political environment changes. Most of the white farmers will have found opportunities in other countries and if they were wise had money stashed away elsewhere in anticipation.
There is nothing anybody can do to save the situation. This scenario has to play itself out, all on its own. No military intervention by neighbours will help the situation. South Africa is only playing along by trying to broker some kind of agreement between political parties. They have to be seen to be doing something. As for sanctions, these are really pointless. There will always be some country that will continue to trade.
The people of Zimbabwe have to take on this task. The people of South Africa got rid of apartheid. The real problem in Zimbabwe is that there is no strong opposition. There is no Oliver Tambo or Nelson Mandela or Walter Sizulu, as well as others too numerous to mention, in Zimbabwe. Until somebody worthy steps forward Mugabe has the stage all to himself. He will stay on that stage until he dies.
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