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Price Controls and Shortages - Index of articles
Hunger
bites the health and education sectors
IRIN News
July 26, 2007
http://www.irinnews.org/report.aspx?ReportID=73440
The effects
of the government's month-old price-control policies, which have
brought widespread shortages of basic commodities, are also beginning
to tell in the education, health and social service sectors.
The government
launched "Operation Reduce Prices" in late June in an
attempt to cap escalating prices as businesses tried to cushion
themselves against the world's highest inflation rate - over 4,000
percent - although some independent economists estimate the actual
inflation rate at about 20,000 percent.
President Robert
Mugabe accused manufacturers, wholesalers, retailers and other service
providers of trying to undermine his ZANU-PF government by sowing
discontent among the electorate ahead of next year's scheduled presidential
and parliamentary elections.
However, the
price-control operation, managed by industry minister Obert Mpofu,
who heads the Cabinet Task Force on Price Monitoring and Stabilisation,
also has high-profile detractors, with Reserve Bank governor Gideon
Gono warning that price slashes would fuel the inflation rate.
Shortages of
bread, cooking oil and beef have forced a church-run Presbyterian
High school, in the Mashonaland Central Province's Mhondoro district,
about 60km southwest of the capital, Harare, to set up a makeshift
feeding programme.
"The pupils
are now having potatoes and tea in the morning because there is
no bread to give them. During lunch and supper, unlike in the past,
when we alternated between rice and sadza [thick mealiemeal porridge,
a staple food], and beef or chicken, we have had to resort invariably
to the potatoes and beans," a senior schoolteacher, who declined
to be identified, told IRIN.
The boarding
school used to source beef and poultry from local businesses, but
these have stopped since the government enforced price cuts, as
suppliers would have to sell at a loss.
This mirrors
action taken by Irvines, the country's largest chicken and egg producer,
which became one of the first companies to stop operations last
week after a hoarde of people, under the protection of police and
soldiers, descended on their outlets and bought cartons of eggs
and trolley-loads of frozen chicken at the government's new reduced
prices.
Hunger
distracting learners
The Presbyterian
school teacher said the institution was considering approaching
freshwater fishermen to sell them their catch as an alternative
source of protein, but it was doubtful whether they had the capacity
to "supply adequate amounts" of fish.
"Morale
has evidently gone down, not only among the pupils, but the teachers
and kitchen staff, who have to deal with the unforeseen effects
of the shortages of foodstuffs. It is difficult to teach in such
an atmosphere, and we fear that the pupils might stage a protest,"
the teacher said.
Onismus Chakanetsa,
a parent of a pupil at the nearby Musengezi High school, told IRIN:
"When I visited my daughter recently to find out how she and
others were coping after she complained of a poor diet, I got to
learn of reduced concentration in class and, in some cases, open
rebellion, as pupils deliberately chose not to attend classes."
The school authorities
told Chakanetsa, an engineer, that supplies of cooking oil and sugar
were low, and procuring fresh supplies was proving to be difficult,
but he said "there is much irony in it because we are being
asked to top up school fees".
While education
facilities are considering additional levies to keep up with hyperinflation,
the official daily newspaper, The Herald, quoted Mugabe as saying
on Wednesday that if the price control taskforce was unable to reduce
school fees, ways would have to be found to regulate or compel schools
to charge reasonable fees.
According to
the World Food Programme (WFP), Zimbabwe enjoys an adult literacy
rate of 80 percent, but the country's economic meltdown in recent
years has caused an exodus of teachers seeking better employment
opportunities in neighbouring countries, such as South Africa and
Botswana, or further afield in Britain.
Jameson Timba,
chairman of the Association of Trust Schools, which respresents
private schools, told IRIN the food shortages were "something
we would expect to have an adverse impact on schools", although
he had yet to receive complaints from schools belonging to the association.
"In our case, the schools are owned and managed by businesspeople
and we would always make contingent plans to address the problem."
In spite of
countrywide shortages of commodities, those with money can still
access what is available on the parallel market, but at much higher
prices than before the crackdown. The poor continue to be affected
most acutely.
In Chitungwiza,
a dormitory town about 35km from Harare, parents were told the creche
would close in August. "We used to ask parents to buy groceries,
including rice, drinks and toilet paper, which we kept on our premises,
but at the beginning of this month most of them could not find ...
[these items]," Grace Mudiwa, the owner, told IRIN.
Hospitals
and clinics running out of food
A kitchen worker
at a government hospital in Chitungwiza, who declined to be identified,
said the food shortages were so bad that there were "realistic
chances of starvation" among patients, prompting local musicians
to organise a charity show this weekend to raise funds for the hospital.
"The situation
has always been bad, with relatives of patients being asked to bring
food to those in the wards, because of lack of money, but the shortage
of basic commodities has heightened the plight," the hospital
employee told IRIN.
Residents in
an old age home in Chitungwiza are being fed only a breakfast of
porridge with a scant sprinkling of sugar. "It is better to
die than experience this kind of hunger," said Adam Joseph,
75. "These days, we are mainly fed on porridge and, even when
we get our sadza, the rations are now very small; I am always hungry
and my cough has worsened."
Mugabe admitted
in his speech at the opening of parliament that the government had
been paying lip service to the welfare of old people, and announced
a bill to promote their wellbeing.
With the government
adamant that the price blitz would continue until inflation was
arrested, Dan Toole, director of the UN Children's Fund (UNICEF)
emergency programmes in Zimbabwe, said earlier this month the humanitarian
situation would worsen.
"What we
know in Zimbabwe is that malnutrition is growing rather radically
- 20 percent of the population currently needs food assistance -
and that food assistance is yet to come in ... There is a shortage
of medicine; there is a shortage of doctors and nurses, and thus
the healthcare system has been devastated."
Supermarkets
closing
According to
The Herald newspaper, 4,926 businesspeople have been arrested since
the start of Operation Reduce Prices, after they had failed to cut
their prices by 50 percent, and there is an accelerating trend of
stores shutting down, despite the government threatening action
against those who do.
Two of Zimbabwe's
largest supermarket chain stores, OK Zimbabwe and Bon Marche, closed
some of their shops last week after being forced by government officials
to cut their prices.
Nhamo Marandu,
a spokesman for OK Zimbabwe, told IRIN the shutdown of stores was
a consequence of power outages. "We could not open some of
our outlets because of the ongoing power cuts. We have generators
which we could use but, again, we have no fuel to power the generators."
Other businesses
have found various reasons not to open. In Harare's upmarket First
Street area, a sign on one shop reads: "We have gone abroad
for a family wedding."
A senior official
of a manufacturing company told IRIN: "Following the government
directive for manufacturers and retailers to halve their prices,
it is no longer viable to run a business in Zimbabwe because of
the huge losses incurred as a result of the order to cut prices."
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