Upload
karan-mehta
View
2.143
Download
0
Embed Size (px)
Citation preview
ZIMBABWEN ECONOMY
Group Members
Names RollnoKunal Sanghvi 66Akshata Satam 67Aditi Sawant 68Vasundhara Sawant 69Palav Shah 70
Zimbabwe History• Zimbabwe is located in Southern Africa.
• Capital: Harare
• Currency: Zimbabwian Dollar
• Occupation: Agriculture and Mining
• Official language: English • Regional languages: Shona, Sindebele
• Natural resources: coal, chromium, gold, nickel, iron, ore, tin and platinum.
• GDP Growth:-3.6%
• Inflation:2,200,000%
• Unemployment:80%
• Main Exports: cotton, tabboco, gold, textile/clothing.
• ExportPartners:SouthAfrica,Zambia,China,Japan,Mozambique,Botswana,Italy,Germany,Netherlands.
• Imports: machinery and transport equipment, chemicals, fuels, electricity
• Import Patners: South Africa, China, Botswana.
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
• 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
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
Currency Devaluation
• There is 60% devaluation in the currency
• Black market
year Official exchange rate
Parallel exchange rate
2000 38 56–70
2001 55 70–340
2002 55 380–1740
2003 55; 824 1400–6000
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)
2008 (Apr) 30,000 revalued dollars
35 -241,750,000 revalued dollars
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
PRODUCTION
GOLD1998 27,114kg2007 7,017kg
Oil2003 0 bbl/day
Energy2003 8.877billion kwh
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%
OIL
• EXPORTS 0 BBL/DAY
• IMPORTS 23,000 BBL/DAY
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
Balance of Payments
Current Account - 425
Balance on goods 158
Balance on services -329
Balance on income -294
Current transfers 40
CapitalAccount 284
Financial Account - 26
Direct investment abroad
----
Direct investment in Zimbabwe
----
Portfolio investment assets
----
Portfolio investment liabilities
-----
Other investment assets -----
Other investment liabilities
-----
Net Errors and Omissions
80
Reserves and Related Items
86
Food Crisis• Land Redistribution Law
• Heavy Rainfall
• Suspension of Private Imports
• The people affected in different regions are as follows:
Matabeleland Masvingo Mashonaland Midlands Harare Manicaland
Human Rights• Police repression
• Child soldiers
• Discrimination
• Human trafficking
Diseases
• Food or waterborne diseases: bacterial and protozoan diarrhea, hepatitis A, and typhoid fever
• Vector borne disease: malaria
• Malnutrition
• HIV/ AIDS
What should be done?
• 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
• 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
• 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
• 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;
• 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.
• 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
Thank You
• International support and aid
need to be treated as a disaster zone
assistance to recapitalize the country especially for agriculture."
• 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
• West support
Assistance for creating economic and democratic institutions
Development of incentives for its stable functionality