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Socialist Democracy September - October 2003

 

Zimbabwe:

THE CRISIS DEEPENS

By a Zimbabwean Socialist

The economic situation around here is pathetic. Official figures for inflation are 340% but economic analysts say that the actual figure is over 400%. The government tampers with figures in order to hide the seriousness of the situation. Prices of basic commodities keep going up. Every new stock has a new price sometimes double the old one. For example, the price of a loaf of bread went from Zimbabwean $300 to $1200 last month. The inflation is mainly because of the government's poor and suppressive monetary policies.

This is worsened by the crippling foreign currency shortage also a result of poor policing. An example of this is the fact that the value of the dollar against other currencies is officially fixed at artificial levels by the government, of $56 against the $US disregarding the stock market. This is also the main cause of forex shortages and a thriving black market.

Currently there are serious cash shortages of bank notes. Daily, there are long queues at banking halls for a maximum withdrawal of $5 000 yet some individuals get salaries of $300 000. Many workers haven't had their salaries for July to date. The banks get only $500 000 a day from the reserve bank. Once that is finished people have to come the following day and queue gain sometimes for up to 4 hours. Workers are now failing to pay rents and rates and also to travel because of unavailability of cash. This is a potentially explosive situation as workers are getting frustrated by the government's failures to find solutions while giving empty promises to inject more money into the market. They had promised to inject $50 billion by mid June which they never did. Some think the shortage is intentional because the government wants to ease inflation.

This might be just another of their dirty tactics and poor policies. There was violent last week at one of the queues at Beverly bank as people's patients ran out. This was dispersed by the brutal riot police beating up desperate people with baton sticks. Many individuals now do shopping with credit cards but the shops which offer the facility are too few causing long queues there too. Others especially shop owners and big businesses have resorted to keeping money in safes further worsening the situation. To force people to deposit money into banks the government has announced that its changing the current $500 note introducing a new one and the current one won't be in use after 60 days.

The economic situation now is where the rich mostly capitalist big businesses get richer and the poor majority get poorer. Because of shortage of many goods, those who have access to them are taking advantage of those who don't by selling them at exorbitant prices. These are the ones likely to be gaining on the stock exchange though many firms are suffering from foreign currency shortages which are hindering their activities. Micro finance firms are also gaining on the stock exchange by taking advantage of cash strapped workers by giving loans at interest rates as high as 60%. Other government officials who grabbed farming land are exporting the products to get foreign currency yet the majority are starving. Others are exchanging maize the staple food here for soap, clothes, cooking oil etc with peasant subsistence farmers. After this exploitation they then export the grain to neighboring countries which ironically have better food reserves.

The current political hot issue is the talks between the opposition Movement for Democratic Change (MDC) and the ruling ZANU party to form a power sharing government. This is a ZANU tactic to dissolve opposition parties. This is exactly what they did to PF-ZAPU the main opposition party of late 80's when they signed the 'Unity Accord' sealing ZANU's dominance. The details of the talks are being kept secret. To force MDC into talks they leveled false charges against its leaders with penalties of the death sentence if found guilty.

The MDC leaders, to save their souls betrayed the masses and workers by agreeing to the talks indicating their lack of commitment to serve the people and their selfishness. This also showed that they are not willing to suffer for the sake of the majority which they claim to represent. This has had the effect of reducing their support base as people feel betrayed. The ZCTU (workers union) has distanced itself from current events and never said anything concerning these talks. They seem to have decided to carry on with their business as if nothing is happening. I think its because they feel that many people support the MDC so if they openly criticize the MDC they fear loosing the support of MDC supporters. This is because they think most workers are on MDC's side. The Zimbabwe Congress of Trade Unions (ZCTU) actually now seems to exist in name only as workers and the government ignore it, creating the need for a more dedicated union which represents and fights for the workers.

There is also talk of Mugabe resigning. Many ZANU PF members have come forward as candidates for the presidency. There were also reports of infighting within ZANU as members fight to be successors of Mugabe. The majority of people feel it is just a tactic to stop mass actions aimed at removing Mugabe from power. The only sign it might be real is Mugabe�s passing of bill after bill most of them to guarantee his safety if he leaves office. An example is a bill passed which makes a former president over 80 years immune from prosecution.

 

 

Socialist Democracy September - October 2003