zimbabwe economy
TRANSCRIPT
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ZIMBABWEN ECONOMY
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Group Members
Names RollnoKunal Sanghvi 66Akshata Satam 67Aditi Sawant 68Vasundhara Sawant 69Palav Shah 70
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Zimbabwe History• Zimbabwe is located in Southern Africa.
• Capital: Harare
• Currency: Zimbabwian Dollar
• Occupation: Agriculture and Mining
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• Official language: English • Regional languages: Shona, Sindebele
• Natural resources: coal, chromium, gold, nickel, iron, ore, tin and platinum.
• GDP Growth:-3.6%
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• Inflation:2,200,000%
• Unemployment:80%
• Main Exports: cotton, tabboco, gold, textile/clothing.
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• ExportPartners:SouthAfrica,Zambia,China,Japan,Mozambique,Botswana,Italy,Germany,Netherlands.
• Imports: machinery and transport equipment, chemicals, fuels, electricity
• Import Patners: South Africa, China, Botswana.
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Political History
• 1923 – British Colony.
• 1961 – Constitution was formed in favor of
whites in power.
• 1980 – Zimbabwe’s Independence
• 1987 – Robert Mugabe came to Power
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• Late 1980’s – Robert Mugabe’s chaotic land redistribution law which caused the economy to cripple and a widespread shortage of basic necessities.
• 1998 – 2000 – Zimbabwe’s involvement in the war in Democratic Republic of Congo.
• 2008 - Election
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Inflation
• Zimbabwe in the grip of exponentially worsening economic crisis since 2000
• Inflation accelerating at a very high rate • Inflation surpassed that of all other nations• Hyperinflation bankrupted the Government• Soaring costs• Increasing fuel prices
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Currency Devaluation
• There is 60% devaluation in the currency
• Black market
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year Official exchange rate
Parallel exchange rate
2000 38 56–70
2001 55 70–340
2002 55 380–1740
2003 55; 824 1400–6000
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2004 824–57305 5500–6000,
2005 730–26,003 6400–100,000
2006 85158–101,196(250 revalued dollars)
100,000–550,000(550–3,000 revalued dollars)
2007 250 revalued dollars 30,000 revalued dollars (Sept)
3,000–2,000,000 revalued dollars(4,000,000 revalued dollars)
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2008 (Apr) 30,000 revalued dollars
35 -241,750,000 revalued dollars
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Unemployment• The biggest fear for the country• Almost 85% are unemployed and
remaining 15% are in government jobs• Loss of half a million jobs• Disguise unemployment• Hampered employment in tourism
industry• Loss of employment in agricultural sector
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PRODUCTION
GOLD1998 27,114kg2007 7,017kg
Oil2003 0 bbl/day
Energy2003 8.877billion kwh
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IndustryENERGY
EXPORTS 0 kwh IMPORTS 3.3 billion kwh
IMPORTING COUNTRIESD.R.CONGO 9.50%MOZAMBIA 9.00%ZAMBIA 28.5%SOUTH AFRICA 43.0%
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OIL
• EXPORTS 0 BBL/DAY
• IMPORTS 23,000 BBL/DAY
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EXPORTS• TOTAL EXPORTS USD$ 1.775
• EXPORT GOODS
• COTTON• TOBACCO• GOLD• ALLOYS• TEXTILES
• MAIN EXPORT PATNERS
• SOUTH AFRICA 36.4%• CHINA, JAPAN, ZAMBIA 7.3% EACH• MOZAMBIQUE 4.7%• U.S, BOTSWAVA, ITALY, GERMANY, NETHERLANDS 3.6% EACH
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Balance of Payments
Current Account - 425
Balance on goods 158
Balance on services -329
Balance on income -294
Current transfers 40
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CapitalAccount 284
Financial Account - 26
Direct investment abroad
----
Direct investment in Zimbabwe
----
Portfolio investment assets
----
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Portfolio investment liabilities
-----
Other investment assets -----
Other investment liabilities
-----
Net Errors and Omissions
80
Reserves and Related Items
86
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Food Crisis• Land Redistribution Law
• Heavy Rainfall
• Suspension of Private Imports
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• The people affected in different regions are as follows:
Matabeleland Masvingo Mashonaland Midlands Harare Manicaland
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Human Rights• Police repression
• Child soldiers
• Discrimination
• Human trafficking
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Diseases
• Food or waterborne diseases: bacterial and protozoan diarrhea, hepatitis A, and typhoid fever
• Vector borne disease: malaria
• Malnutrition
• HIV/ AIDS
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What should be done?
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• Political reforms
negotiated settlement on a Tsvangirai-led transitional government.
political agreement between the MDC and ZANU-PF
Tsvangirai-led transitional government with substantial participation by ZANU-PF
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• Economic reforms careful management of domestic debt
adoption of new economic policies
balance of payments support
the negotiation of substantial credit lines
exchange rate policy & a move towards positive real interest rates
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• Solution to food crisis
close by countries should provide emergency relief
• Reformation of Banking sector
restoration of the ailing banking sector
return the central bank to its traditional role
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• Land reforms/ land redistributionNationalize the productive land
Employ farming expert management
The restoration of property rights
The market for agricultural land
Effective isolation from the financial institutions;
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• The reticence of farmers & professional to return to Zimbabwemore than three million Zimbabweans have
fled
an injection of external development assistance & technical help with agricultural extension services.
Professional classes return under a new regime if they can see bright prospect in its reformation process.
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• Role of IMF & World banksubstantial budget support and balance of
payments
support in the form of long-term loans from the IMF and World Bank
can contribute to help overcome acute shortage of foreign
exchange and earn good export revenues
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Thank You
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• International support and aid
need to be treated as a disaster zone
assistance to recapitalize the country especially for agriculture."
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• Role of faith based organizations bringing democratic change build community civic culture combat illiteracy bring more discipline to an individual’s life &
community brings about a respect for rule of law,
tolerance spiritual, physical and eventually economical
prosperity
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• West support
Assistance for creating economic and democratic institutions
Development of incentives for its stable functionality