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Price Controls and Shortages - Index of articles
A
government on its way out - Moyo
Mail & Guardian (SA)
July 06, 2007
http://www.mg.co.za/articlePage.aspx?articleid=313402&area=/insight/insight__africa/
In most supermarkets
in the sprawling township of Zimbabwe's capital, Harare, empty
shelves and butcheries with no meat in the cold rooms tell of a
desperate reality.
Even chickens
are hard to come by. The government's crack price monitoring
teams will soon have no jobs, because "there will be nothing
to monitor as all commodities have disappeared from shelves",
says Mercy Tiripo (32) of Mabvuku township, about 20km east of Harare.
Tiripo believes
the worst is still to come. "They targeted houses because
they feared the people will rise against the government after the
parliamentary elections in 2005; now they are targeting shops and
there will be no more shops by year end," she says.
"We will
be left with nothing because shops are not restocking any time soon,"
says Tiripo.
In the same
township, Teresa Mtikani (not her real name) a 45-year-old shop
owner, says she will have to lay off some of her employees. "There
is nothing to sell any more, why should I keep them in the shops,"
she asks.
"Unemployment
will rise to 110% and there won't be any shops. I can't
even resort to sewing — there isn't any electricity,"
Mtikani says. "You can't plan anything anymore."
"Price
controls were okay, but if they are now going to create shortages,
we are wondering if the government was right in the first place,"
says Absalom Phiri (35).
"If it's
going to be the government creating shortages, we will have serious
problems with it, because they failed to manage this situation properly,"
Phiri says.
"Many
people are now walking to work. They can't walk on empty stomachs,
and they will obviously turn their anger against the government,"
he says.
Economists predict
companies will be shut down within months, with many employees being
thrown onto the streets. "It's dangerous. If producers
are not supplying shops with products, who is going to be paying
the wages? Companies will be laying off workers and that builds
up the public anger," says Daniel Ndlela, an economist, says:
"It's going to boomerang."
Jonathan Moyo,
Mugabe's former spin doctor, says developments in Zimbabwe
are not without precedent. "In eastern Europe, governments
that tried to nationalise, seizing companies, all these economies
have one thing in common: they are now history, and you can only
find them in the dustbin of history."
Moyo says "it's
normally [the] behaviour of a government on its way out, [one] that
has no confidence in itself. It's trying to please voters,
it's nothing to do with consumers. They are trying to give
the impression they have nothing to do with the economic meltdown,
[and the] shortages of goods and services. It's been trying
to blame the business community for job losses."
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