According to an article in the New York Times, Zimbabwe’s leader Robert Mugabe could be on his way out of office. Several advisors on Mugabe’s staff are in negotiations with opposition leader Morgan Tsvangirai. The election appears to be much closer than the Mugabe camp anticipated and now some Mugabe officials are calling for the leader to resign.
The following is an excerpt from the New York Times article:
“‘The chiefs of staff are talking to Morgan and are trying to put into place transitional structures,’ said John Makumbe, a political analyst and insider in local politics who has spoken in the past in favor of the opposition.
“‘The chiefs of staff are not split; they are loyally at Mugabe’s side,’ said Mr. Makumbe. ‘But they are not negotiating for Mr. Mugabe. They are negotiating for themselves. They are negotiating about reprisals and recriminations and blah blah blah. They are doing it for their own security.’”
I sincerely hope that Tsvangirai will knock Mugabe out of power in a peaceful, democratic manner, and that he doesn’t fall victim to the power of his new position. It would be great news for Zimbabwe, Africa and the world. Zimbabwe was once an attractive emerging nation for investors and I want to see it regain that status.
A word of warning to investors eager for the potential of a Mugabe-free Zimbabwe: Even if Tsvangirai does take power, there will be a risk that things will not improve any time soon. It is best to wait for the new leadership to show some stability, in how they plan to run things before investing.
Showing posts with label Zimbabwe. Show all posts
Showing posts with label Zimbabwe. Show all posts
Wednesday, April 2, 2008
Friday, March 28, 2008
The Zimbabwe Situation: Is There Hope?
The Zimbabwe Situation, as it is being dubbed by some, is a combination of mass inflation and human rights and property rights violations. I think most people would agree that long-time leader Robert Mugabe is responsible for the present state of the country, and it's economy.
For those unfamiliar with the Zimbabwe Situation or Robert Mugabe, there is a website dedicated solely to providing information on the subjects: zimbabwesituation.com. I also wrote a blog post last month that talked about the inflation problems in Zimbabwe.
According to recent press covering the Zimbabwe Situation, there appears to be some hope for the upcoming elections. For years, the opposition party has been suppressed and elections have been rigged. Mugabe would punish any supporters of the opposition by cutting off their food supplies, among other things. Many people are not even registered to vote out of sheer hopelessness, and the last few elections in Zimbabwe have been—more or less—a waste of time.
This election seems to be different; there is a growing sense of hope among Zimbabweans. Both the opposition leader, Morgan Tsvangirai, and a rival leader from Mugabe’s own Zanu-PF party are running. Though Mugabe has employed some of his traditional election tricks, this election has been relatively peaceful, according to an article from BBC News.
Zimbabwe was one of the brightest stars in Africa prior to Mugabe’s destruction of the economy. The country is rich with natural resources, and it has much to offer both tourists and businesses, but investors will shy away until Mugabe is out of power. If Zimbabwe can elect a good leader who welcomes a free market, things could turn around for Zimbabwe. I’m not holding my breath, but hopefully someday soon we will see an end to the infamous Zimbabwe Situation.
For those unfamiliar with the Zimbabwe Situation or Robert Mugabe, there is a website dedicated solely to providing information on the subjects: zimbabwesituation.com. I also wrote a blog post last month that talked about the inflation problems in Zimbabwe.
According to recent press covering the Zimbabwe Situation, there appears to be some hope for the upcoming elections. For years, the opposition party has been suppressed and elections have been rigged. Mugabe would punish any supporters of the opposition by cutting off their food supplies, among other things. Many people are not even registered to vote out of sheer hopelessness, and the last few elections in Zimbabwe have been—more or less—a waste of time.
This election seems to be different; there is a growing sense of hope among Zimbabweans. Both the opposition leader, Morgan Tsvangirai, and a rival leader from Mugabe’s own Zanu-PF party are running. Though Mugabe has employed some of his traditional election tricks, this election has been relatively peaceful, according to an article from BBC News.
Zimbabwe was one of the brightest stars in Africa prior to Mugabe’s destruction of the economy. The country is rich with natural resources, and it has much to offer both tourists and businesses, but investors will shy away until Mugabe is out of power. If Zimbabwe can elect a good leader who welcomes a free market, things could turn around for Zimbabwe. I’m not holding my breath, but hopefully someday soon we will see an end to the infamous Zimbabwe Situation.
Friday, February 22, 2008
Zimbabwe’s Inflation Tops 100,000 Percent
As the U.S. battles a serious inflation problem, we can at least be thankful it’s not as bad as the inflation issues Zimbabwe faces. Yesterday, Zimbabwe’s statistical office reported inflation of over 100,000 percent. That’s right, 100,000 percent; no extra zeros have been added for emphasis.
To give you an idea of what that type of inflation looks like, in Zimbabwe a simple loaf of bread costs around Z$3.5 million, according to VOA News. Can you imagine having to carry around 3.5 million dollars in cash just to buy a loaf of bread? As you have probably realized, this is not good for Zimbabwe’s economy; things have become truly disastrous there. Zimbabwe’s per capita GDP has shrunk from $200 in 1996 to around $9 now, according to CNN.
Unfortunately, a country that was on the rise has essentially been ruined by one man: Mr. Robert Mugabe. Since he won’t allow anyone to run against him in the elections, it doesn’t seem like he will be voted out anytime soon. The good news is that he is 84 years old, so he can’t last all that much longer. Castro resigned this week, so maybe Mugabe is the next dictator on his way out. Here’s hoping, anyway.
With the U.S. inflation rate at a little over 4 percent we don’t need to worry about problems of this scale, and I’m very thankful for that. But inflation in the U.S. is still a major problem. If people continue to overlook inflation, it will eventually eat their savings. Plan for inflation now, and invest accordingly. Ignore it, and your retirement could be in peril.
To give you an idea of what that type of inflation looks like, in Zimbabwe a simple loaf of bread costs around Z$3.5 million, according to VOA News. Can you imagine having to carry around 3.5 million dollars in cash just to buy a loaf of bread? As you have probably realized, this is not good for Zimbabwe’s economy; things have become truly disastrous there. Zimbabwe’s per capita GDP has shrunk from $200 in 1996 to around $9 now, according to CNN.
Unfortunately, a country that was on the rise has essentially been ruined by one man: Mr. Robert Mugabe. Since he won’t allow anyone to run against him in the elections, it doesn’t seem like he will be voted out anytime soon. The good news is that he is 84 years old, so he can’t last all that much longer. Castro resigned this week, so maybe Mugabe is the next dictator on his way out. Here’s hoping, anyway.
With the U.S. inflation rate at a little over 4 percent we don’t need to worry about problems of this scale, and I’m very thankful for that. But inflation in the U.S. is still a major problem. If people continue to overlook inflation, it will eventually eat their savings. Plan for inflation now, and invest accordingly. Ignore it, and your retirement could be in peril.
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