Mugabe vows to save sick economy

Source: BBC News

President Robert Mugabe has said at the opening of parliament that strict price controls will continue as Zimbabwe tries to turn around an ailing economy.

The country, once the bread-basket of the region, is suffering crippling food shortages and rampant inflation.

Mr Mugabe blamed droughts and sanctions for their economic woes and said they faced continued hostility from the UK and her Western allies.

A bill to nationalise foreign firms, including banks and mines, is planned.

Read more: http://news.bbc.co.uk/1/hi/world/africa/6913148.stm

Fucking thug needs to go...

Nationalizing the firms is a good concept, provided that a minority foreign-investment stake is permitted in non-strategic firms. But I am concerned that corruption will prevent this good concept from becoming a good reality. Mugabe himself hardly sets a good example in this regard. The west is providing a real support for Mugabe politically with its hardline attitude of attempting to subvert Zimbabwe's government. The majority of Zimbabwe's people will distance themselves from such attempts and will at a minimum be neutral where otherwise they might vote against ZANU-PF.

Nationalizing industry will lead to MUCH, MUCH more capital flight from the country, especially any foreign investment, which will SEVERELY aggravate inflation.

He ran off the white farmers who actually got production out of the land because they had the capital to invest in farming, and since nationalization, farming yields have CRASHED. So, if that is any indication of how nationalization is likely to go, things in Zimbabwe are about to get even worse.

Add to that his BATSHIT INSANE policy of setting arbitrary prices for consumer goods, even BELOW their wholesale costs, leading to barren shelves and panic buying, and Zimbabwe is just about destroyed.

Next up will be infighting for the crumbs, then dissolution into a Liberian style failed state.

China is a thriving national economy, and a major portion of its economy is state- or collectively-held. There is nothing inherently unproductive about social economy. Zimbabwe nationalizing or partially nationalizing certain sectors would not preclude foreign investment - it would simply place the state in the driver seat. Now, as I said, this requires institutional competence, which we see in China, and probably not in Zimbabwe.

Simply because white farmers had the best land and most capital does not mean that they "should" always have such or that it makes them eternally fit to drive the agricultural sector. Any time there's a change in productive relations, productive output can suffer. If Zimbabwe has the political will and practical determination, there's no reason that land reform cannot be successful in the future.

Price controls are another matter. The current policy is problematic unless law enforcement and practical realities allow it to be airtight. This, however, would probably require a high degree of repression.

If I were an advisor to Zimbabwe's government, I would suggest following the Chinese economic model, and being very cautious with macroeconomic policy. Zimbabwe should focus on its comparative advantages for the short term so that it can accumulate the resources to develop a comprehensive national economy at a later stage.

needed to run said businesses? Lets face it: no one is going to take Zims at the official exchange rate. Not with the government presses running so fast it's a wonder they don't melt!
Zimbabwe will cease to be within the year. No food, no jobs, no wildlife, no agriculture, no economy, no hope, rapidly dropping life spans (what is it at now, 30 years?). The only question is what will the neighboring countries do with the 10 million or so refugees that may come pouring out of that country?

I don't care what form of economic system or totalitarian government you have, historical precedent has overwhelmingly shown that printing huge sums of money has always, always made things worse.

Thugs don't have to be stupid. Somebody gave him bad economic advice.

Which is what the ZanuPF leaders have done.
You buy foreign currency from the central bank at the official rate (which is set at some absurdly overpriced ratio, 250:1 I think now) with the local currency, then buy local currency back at black market rates with the foreign currency (currently around 4500:1 or some such). Voila, instant money. Of course this only works if the official exchanges won't convert any (or only small) amounts of local currency for foreign currency.

That, and Mugabe doesn't take advice, he gives it.

The wealth he is stealing is still being massively devalued and becoming worthless when used to buy the foreign luxuries that the corrupt elite desire.

Which is why (in words only at this point) Mugabe has agreed to step down -after- winning the next election.
If Zimbabwe still exists by then.

Mugabe can save his economy.

:rofl: :rofl:

The guy takes land away from the big farms who know what they are doing and gives it to a bunch of city folk who don't know squat about farming. By the way, this chases the farmers out of the country.

Don't like 1000% inflation rates - STOP PRINTING MONEY! When people run out to spend their paycheck that day, because it will be worth less than tomorrow, it's time to stop printing the money.

This is what happens when idiotic liberals instigate class warfare against the rich in society.

What? Seriously, what? First off, the ZanuPF ain't 'liberal'. Secondly, it *is* the rich doing this.
Third, enjoy your seriously fucking short stay on DU, Freeper.

Wow, not sure that ANYONE would accuse Mugabe of being liberal, but i guess to most freepers anyone with darker skin then theirs must be a liberal becuase they're always looking for those government hand-outs... :eyes:

"seriously fucking short stay" :rofl:

Just :rofl:

"This is what happens when idiotic liberals instigate class warfare against the rich in society."

Class "warfare" has always existed and will continue to exist so long as there are class divisions! It can be no other way, despite the fantasies of some, both conservative and liberal alike. The Republicans have waged a class struggle with their policies to increase economic polarization. It represents an expropriation from people who actually work and whose work produces something tangible in terms of goods and services. Democrats would hopefully respond with a class struggle to achieve an economic distribution that more closely approximates the relative economic contribution of each member of society.

And, you post this liberal-smearing shit on your SECOND post??? HAHAHHAHAHHAHAHHAHAHHAHAHHA

Buh-bye.

And for you to say that shows your true colors.

Enjoy your stay.