Thursday, September 6, 2007

Zimbabwe is crumbling





Few Zimbabweans can cope with all the shortages of food, fuel and foreign currency and the current rate of inflation (the world's highest) - already more than 7 000% -- will just keep rising.

President Robert Mugabe, who is accused of gross human rights abuses, has made it clear that dissent will not be tolerated as he struggles to contain the economic crisis.
The defiant leader faces few political challenges from a divided opposition and his powerful Western foes, whom he accuses of plotting to oust him, have failed to weaken the veteran leader with economic sanctions.

Lip service
Many Zimbabweans feel South African President Thabo Mbeki and other regional leaders have only paid lip service to the suffering in their country, a view shared by Western diplomats.

They have failed to pressure Mugabe to find a solution and still respect him as an African liberation hero, deep bonds that overshadow one of the continent's gravest humanitarian crises.

"Government needs to stop burying its head in the sand over the rampant influx of undocumented Zimbabweans into South Africa and take proactive action to gain some form of control over the situation," South African immigration lawyer Gary Eisenberg said in a statement.

Applications for asylum and refugee status, meanwhile, are piling up. Demand is so high that Home Affairs has designated three days a week for Zimbabwean applicants.

While prices run wild in Zimbabwe, many basic goods are also out of reach for them in South Africa, let alone the flashy luxury cars and glitzy malls symbolising an economic boom.

Wage freeze
Meanwhile, Mugabe has banned all pay rises without state authorisation and handed himself extra powers in a new bid to curb the world's highest inflation rate, state media said on Friday.

As part of the package of measures which were gazetted by Mugabe and detailed in the government mouthpiece Herald newspaper, all rents, school fees and service charges must be frozen for the next six months.

"No one in private or public sectors can now raise salaries, wages, rents, service charges, prices and school fees on account of increases or anticipated increases in the consumer price index, the official and unofficial exchange rates, or valued added tax and duty," said the government-controlled publication.

Increases in salaries or fees can only be made in future with specific approval from the national incomes and prices commission, a body headed by Mugabe, and without any link to the inflation rate which currently stands at over 7 600%.

"The net effect of the charges will be to push inflation down since all increases will be by less than the current inflation rate," the report said.

"Those who breach the standards set by the commission when increasing pay, fees or prices can be fined ... jailed for up to six months, or given both punishments," it added.

The latest edicts come two months after the government effectively ordered retailers and businesses to slash their prices in half, a move which has led to widespread shortages in the Southern African nation.

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