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Zimbabwe-An economy in free fall
Crisis
in Zimbabwe Coalition
December 06, 2006
Poverty is an insult (which) stinks.
It demeans, dehumanizes, and destroys the body and the mind…if not
the soul. It is the deadliest form of violence - Mahatma Gandhi
The ever-increasing cost of living
has further pushed the majority of Zimbabweans into poverty as the
family basket for November for an average urban family of six has
shot to ZW$208 714.
Prospects for economic recovery in
Zimbabwe are gloomy as long as government continues to implement
half-hearted measures that do not add any value to the economy.
Despite the grandeur that has characterized many government policies
on the economy, the people continue to suffer with prices of basic
commodities such as cooking oil, soap, sugar and flour continue
to soar. Viability problems caused by hyperinflation have forced
most industries to close down and lay off their workers.
The increases come on the background
of a proposal to set up a National Incomes and Pricing Commission
whose responsibility would be, among other things, to implement
and monitor the prices and incomes stabilization protocol. The deeply
rooted economic crisis is a result of dysfunctional institutions
that are amenable to corruption and the persistence of patrimonialism
and cronyism in Zimbabwe. Corruption, a thriving black market, the
hoarding of cash, money laundering and printing of large volumes
of money all point to a failing economy.
The National Incomes and Pricing Commission
proposed by government must not be punitive to employers and manufacturers.
What we forecast as Crisis in Zimbabwe Coalition is that the Commission,
just like the National Economic Development Priority Programme (NEDPP)
will be another white elephant that does not help to resuscitate
the ailing economy.
Visit the Crisis
in Zimbabwe Coalition fact
sheet
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