Zimbabwe: 2007 till Mugabe resigns

[Tom Odom]

Just some tidbits on Zimbabwe, once a breathtakingly beautiful country, and now another on the long list of African failed or failing states:

Zimbabwe's ruling party ousts Mugabe challenger

JOHANNESBURG, South Africa (CNN) -- Zimbabwe's ruling party on Tuesday expelled former Finance Minister Simba Makoni because of his bid to unseat President Robert Mugabe, whom he blames for the country's economic collapse.

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Zimbabwe's inflation tops 24,000 percent

Grasping what 24,000 percent inflation rate means is difficult:

Zimbabwe's disposable currency
Once one of the most prosperous countries in Africa, Zimbabwe seems to be nearing economic collapse.
By Sheridan Prasso, Fortune contributing editor
August 6 2007: 11:56 AM EDT

(Fortune Magazine) -- What does it feel like to hold a few million dollars in your hands? If you're in Zimbabwe, like this worker, and your wages are in Zimbabwean dollars, not very good. With hyperinflation running at 4,500 percent on an annual basis, all his cash is worth less than $100.

Once one of the most prosperous countries in Africa, Zimbabwe seems to be nearing economic collapse. Unemployment is estimated at 80 percent. Electricity has been rationed to just four hours a day. A loaf of bread costs 44,000 Zimbabwean dollars, about 18 cents at black-market exchange rates - or $176 at the official rate.

Stan and I witnessed this sort of thing in Zaire/Congo. Stan had the greater exposure to the decline of Zaire from 1984 to 1994. But for the average Westerner it is difficult to understand just how unhinged everything becomes. Money is for all rationale purposes worthless--yet folks are out there scrambling to make enough for that loaf of bread. Meanwhile the real economy goes under ground using goods, services, and often foreign currency to get by. Diamonds and gold were the hidden currency in Zaire in the mid-90s; I doubt that has changed much. I do not know what serves as the hidden currency in Zimbabwe.

Tom