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Run away inflation
in Zimbabwe Coalition
currency shortages, thriving parallel market, food scarcity, falling
production levels and economic inefficiency have been cited by the
Central Statistics Office as the main factors which led to an increase
in the monthly annualized inflation levels of December 2006 to 1
281% up from the November 2006 figure which was pegged at 1099%.
An increase of 182% points from the previous annualized monthly
the Total Consumer Poverty Datum Line (PCDL) has reached an all
time high mark of Z$344 356 for the same month under review. The
increase is more than 50% compared from the November 2006 figure
which was at Z$228 133 required by a family of five to meet their
basic necessities. This entails that the cost of purchasing basic
commodities in the country has multiplied by almost fourteen times
compared to the previous month.
The afore exhibited
statistics indicates a governance crisis in Zimbabwe. It is a crisis
of a state being run through an incoherent and inconsistent policy
framework. The policy failures mainly characterized by the breakdown
of the rule of law, lack of respect of property rights, thriving
corruption within the public sector, lack of transparency , accountability
and the belief in violence as a tool to silence critics by the government
has led to such unfavourable statistics.
African Development Community (SADC) must start putting Zimbabwe
under its microscope as it is increasingly becoming the missing
link in the integration and development project for the continent.
In the year 2002 of the fourteen member states' inflation
rate statistics reviewed by the regional block, only Zimbabwe and
Angola had an inflation rate which exceeded 100%, at 123.5% and
106% respectively. Angola has been in a civil upheaval for almost
27 years, which in one way or the other had contributed to the economic
meltdown. As for Zimbabwe, there hasn't been a civil war as
the economic quagmire has been authored and crafted by the incumbent
ruling party whose minions are competing to out do each other in
manipulating the state as a cash cow for personal aggrandizement.
Nine other countries
had an inflation margin below 20% whilst two where slightly above
20%. What happened to our 'partner' in inflation (Angola).
As Zimbabwe wallow in the 1 281% inflation level, Angola's
enjoying a favourable 11.6% inflation margin, yet its infrastructure
had been damaged by the 27 years of war, it has managed to craft
transparent policies on its mines, oil deposits and agriculture.
A glimpse at the inflation levels amongst other member states for
SADC shows a handsome crop of economic policies emanating form such
countries as noted by the December 2006 inflation rates below: South
Africa 4.8%, Zambia 8.1%, Malawi 12.2%, Namibia 5.4% and Mozambique
9.4%. It is sobering to note that the above percentages from these
countries' inflation balance sheet combined will not reach
a tenth of the Zimbabwe's inflation.
The region must
start assessing the long term effects of the Zimbabwean crisis.
It will not take long before, the region starts importing the Zimbabwean
inflation. The concept of quite diplomacy is a regional time bomb,
which must be defused promptly. The curse of modern day African
politics is that of drawing a blurred line between ruling parties
and the government. Its time the regional states man stop working
like punch drunken boxers who simply don't know where to stop
plundering the national treasury. If not resolved, Zimbabwe in particular
and Africa in general will be worse off.
Visit the Crisis
in Zimbabwe Coalition fact
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