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This article participates on the following special index pages:
Sunrise of currency reform - Index of articles and reports on Zimbabwe's new currency reforms
Operation
Sunrise, inflation and indicators of economic decline
Media Monitoring Project Zimbabwe (MMPZ)
Weekly Media Update 2006-32
Monday
7th August – Sunday August 13th 2006
DURING the week
the government media continued underplaying Zimbabwe’s economic
crisis mostly through overstating the benefits of the Reserve Bank’s
mid-year monetary policy. For example, of the 61 reports government
papers carried on the economy, 43 (70%) reported approvingly on
the RBZ’s efforts to resuscitate the economy while 14 (23%) highlighted
indicators of further economic decay in isolation of their root
causes. Only four stories (7%) sought to give reasonable accounts
on the country’s new inflation levels, which saw year-on-year inflation
for July dropping by almost 200 percent from 1 184.6 percent in
June and month-on-month inflation surging to 25.1 percent from the
June rate of 17.3 percent.
ZBH reflected
the same trend. Thirty-six (59%) of the 69 reports it aired on the
economy merely promoted the RBZ’s efforts to revive the economy,
23 (33%) papered over the reasons behind the fall in the yearly
inflation and 10 stories (14%) drew attention to the myriad problems
troubling the economy. And like the official papers, ZBH steered
clear of investigating government’s role in this decline.
As a result of
the official media’s lopsided coverage of the matter, their audiences
only got a sanitised picture on the causes or extent of the economic
ills.
This stance was
chiefly reflected in the government papers’ sourcing pattern (see
fig 1), which gave prominence to official comments on the economic
crisis while muffling alternative voices.
Fig 1
Voice distribution in government papers
| Govt
|
Ordinary
people |
Unnamed |
Alternative |
Traditional
leaders |
Business |
| 26 |
8 |
9 |
5 |
3 |
14 |
Although ZBH seemed
to have carried a significant variety of comments on the subject
as shown in Fig 2, most of them were only reported echoing government
views. Those expressing opposing opinions were either suppressed
or misrepresented.
Fig 2
Voice on ZBH
| Govt |
Alternative |
Business |
Ordinary
people |
Professional |
ZANU
PF |
Traditional
leaders |
| 23 |
20 |
15 |
38 |
4 |
1 |
2 |
For example, most
of the ordinary people the national broadcaster cited commenting
on Project Sunrise were presented as endorsing the policy even though
they were actually quoted giving contrary views. ZTV (7/8, 6pm)
illustrated this point. It reported the "public"
as calling for the tightening of the RBZ’s roadblock blitz to flush
out money-launderers, but instead most of those interviewed appeared
to be complaining about the searches. Otherwise, the government
media just flooded their audiences with official pronouncements
on the purported smooth progress of the operation. These included
updates on the number of people that had since been arrested on
allegations of "money laundering" and the amounts
recovered from them, which ZTV (7/8, 8pm), The Herald and
Chronicle (8/8) put at 2 545 and $500 billion respectively.
Notably, no identities
of those implicated in these economic crimes were revealed.
The Herald (8/8),
for example, withheld the names of two "senior
police officers" allegedly implicated in money
laundering following their interception at two separate roadblocks
but did not explain the basis for keeping their identities a secret.
Neither did it identify the "unscrupulous businesspeople
in and around Harare" that it said had devised
methods to evade the RBZ’s dragnet. Instead, The Herald and Chronicle
(10/8) were determined to depict the RBZ blitz as having unearthed
massive illegal money. This resulted in the two papers appearing
ludicrous by passively reporting Police Commissioner Augustine Chihuri
accusing Barclays and FBC banks of suspiciously peddling huge quantities
of cash despite information to the contrary.
Although the papers
reported the two banks saying they had recovered their cash from
the RBZ – confiscated under the $10 trillion seized at the Harare
International Airport after the authorities "erroneously
associated" them "with some
wrongdoing in connection with the movement of cash between places"
– they still quoted Chihuri maintaining the two had a case to answer.
How this was so, they did not say or ask. They simply quoted Chihuri
insisting that the banks’ case was a serious issue that had caused
"havoc" to the country’s economy
adding, "they (banks) have a lot of explanation
to do and apologising to the nation and the President himself".
The official media’s
celebratory coverage of the RBZ’s crackdown on money laundering
was also replayed in ZBH’s coverage on the fall in inflation. Despite
initially carrying a balanced report on the matter (ZTV 9/8, 8pm),
the rest of the broadcaster’s 22 stories simplistically hailed the
dip as indicating the effectiveness of government’s economic policies
without providing any informed analysis on its implications. And
in an effort to portray its excited coverage of the issue as reflecting
national sentiment, ZTV, Spot FM and Radio Zimbabwe (10/8, 8pm)
reported members of the public and economic analysts describing
the development as "a sign of better things to come".
ZTV (10/8, 6pm) and Radio Zimbabwe (10/8, 8pm)’s Shona bulletins
also wrongly translated the term inflation to mean the "firming"
of the Zimbabwe dollar.
ZBH’s prejudiced
and unprofessional coverage of the inflation decline was also aptly
captured by the way ZTV’s main anchor conducted an interview on
the subject with Senator Guy Georgias. Rather than stick to basic
interviewing values, the newsreader manipulated the senator’s responses
by asking him leading and politically loaded questions. One of the
questions was framed thus: "…the decline in the
annual rate of inflation has raised optimism among Zimbabweans but
whilst we’re making efforts to revive the economy, will there be
any significant results in the face of, say, some external forces
such as sanctions which have been imposed on Zimbabwe?"
However, the official
media’s upbeat coverage of the effectiveness of government’s economic
strategy was belied by the stories they carried on indicators of
economic decline. These included reports on the rising prices of
goods and services, underlined by the sharp rise in the Poverty
Datum Line, which "surged 24 percent to $84 000
(84million) last month" for a family of five
(The Herald and Chronicle 10/08). But to its credit, The Herald
(8/8) linked the hike in fuel prices on both the formal and informal
markets to the RBZ’s devaluation of the dollar, which it said had
"immediately" triggered increases
in commuter omnibus fares. In addition, it reported a Caltex official
confirming the development.
The Mirror stable’s
coverage of Zimbabwe’s economic chaos basically resembled that of
the government media. Its stories on inflation (three) and the RBZ’s
Operation Sunrise (seven) were mostly passive endorsements of these
developments.
However, the rest
of the private media did not seem to find any justification for
celebration in the 67 stories they carried on the economy, 34 of
which were on the monetary policy, six on inflation and 27 on indicators
of economic decline.
Of the 67 economic
stories, private papers carried 43 and the private electronic media
24. The reports continued to question the usefulness of government’s
ad hoc economic measures, which they projected as doomed unless
the authorities resolved fundamental economic influences that had
caused the economy to slide in the first place.
For example, these
media continued to criticise the soundness of the monetary policy
and the conditions under which Project Sunrise was being implemented.
The Financial Gazette (10/8), for instance, reported civic organisations
as planning to challenge the legality of the emergency powers being
used to confiscate cash from individuals and businesses as they
believed some of the things being done were unconstitutional or
were a violation of human rights. The paper quoted the coordinator
of the umbrella NGO, Crisis in Zimbabwe Coalition Jacob Mafume confirming
the move, saying: "The action seeks also to challenge
the setting up of road blocks, the use of unauthorised people; in
this case, the militia, who do not have the authority to search
people."
Apart from the
planned lawsuit, Studio 7 (8/8) and the Gazette also reported the
Parliamentary Finance Committee as seeking a meeting with RBZ governor
Gideon Gono to force him to abandon his currency reforms, which
the Gazette claimed had exposed "the commercial
interests of many powerful figures". They said
the committee believed Gono should have tabled his policies in Parliament
before implementing them. The Standard (13/8) agreed, criticising
Gono for "exercising his powers way beyond what
would be regarded as normal".
While the government
media gave the impression that Gono’s monetary policy was being
implemented smoothly, Studio 7 (10/8) and The Zimbabwe Independent
(11/8) reported confusion and alarm over the phasing out of the
old currency, especially among those in the rural areas, as they
could not easily access banks to change their money. In fact, the
station and the Gazette revealed that state security agents had
been placed on high alert for fear there could be riots as the expiry
date on the use of the old currency approaches. The government media
censored these matters.
The private media
also did not view the retreat in the rate of inflation as a source
of celebration, noting that inflationary factors such as the cost
of living (exemplified by the soaring Poverty Datum Line) were still
rising at a faster rate. For example, online news agency New Zimbabwe.com
(9/8) quoted economist Tony Hawkins predicting that
"inflation will rise sharply during the second half of this
year because of huge increases in the price of commodities and also
due to high money supply growth". In addition,
it linked Hawkins’ observations to the fact that companies were
operating below 30% capacity due to foreign currency shortages and
that output in commercial farming had declined by more than 60 percent.
Online news agency
Zimdaily (10/8) agreed. It accused Gono of wanting the nation to
believe that "inflation was under control"
and will drop to double digits by 2008. It noted that the governor
neglected to mention that it was most likely the massive supplementary
budget announced by Finance Minister Herbert Murerwa would be mostly
financed through the printing of new money leading to broad money
growth, which will, in turn, lead to yet higher levels of inflation.
The private media
also continued to highlight indicators of economic decline, which
they linked to government’s poor management of the economy. However,
they still failed to connect the recent sharp rises in prices of
goods and services to the ripple effects of Gono’s devaluation of
the dollar.
The critical manner
in which the private media tackled the topic is mirrored in their
widespread use of alternative sources as shown in Fig 3 and 4.
Fig 3
Voice sourcing in the private Press
| Government |
Alternative
|
Unnamed |
ZRP |
Business |
Ordinary
People |
| 31 |
21 |
6 |
4 |
1 |
4 |
Notably, the Mirror
stable recorded 13 (42%) of the 31 government voices quoted by private
papers. The lack of balance in the private electronic media’s coverage
of the economy and inflation is reflected in the dearth of government
voices in their stories dealing with these issues.
Fig 4
Voice sourcing in the private electronic media
| Govt |
Business |
Alternative
|
Professional |
MDC |
Media |
| 1 |
3 |
11 |
1 |
2 |
1 |
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