THE European Union will meet Tuesday to impose further sanctions against Zimbabwe. They call them ‘targeted sanctions’. They are right. The sanctions are targeted on Zimbabwe’s business nerve centre though. They are targeted on the Zimbabwean economy and eventually on the very people supposed to be ‘helped’ by the sanctions.
Imposing penalties on businesses operating in the country can hardly be termed 'targeted sanctions on individuals'.
Who buys that argument? An inflation rate of 2.2 million percent is hardly a result of ‘targeted sanctions’, nor is it a result of economic mismanagement per se.
Someone is fiddling with the economy - someone is making the economy 'scream' from somewhere.
Pressuring a German company to stop supplying paper for printing money, can never be called a ‘targeted sanction on an individual’.
If Tesco withdraws from Zimbabwe, that is not a 'targeted sanction' – that is inhuman strangulation. It hurts the poor and vulnerable – nothing more, nothing less.
The effects of such heartlessness are felt on the streets in Harare, Bulawayo, Mutare, Gweru; in fact everywhere in Zimbabwe. Prices are doubling every 25 days and individuals are finding life unbearable. The ‘misery index’ is rising dramatically.
Who’s losing, who’s benefiting?
The Kennedy family amassed a lot of wealth during the Prohibition – trading illicit booze. The sumptuary laws that prohibited alcohol and extravagance hardly worked. The rumor is that mob boss Frank Costello admitted that he and Joseph P. Kennedy were bootlegging partners – often supplying their Harvard buddies with illicit booze.
So what happens in Zimbabwe if sanctions bite?
Those with money, the cash barons, strike it rich, for a time at least, despite the economic turmoil and sanctions. They will import scarce goods, sell them at exorbitant rates - the sanctions have made some goods very expensive. Well most of them.
Bus loads of Zimbabweans make excursions to South Africa and Zambia, to buy and sell back in Zimbabwe at exhorbitant prices, but not everyone can do this.
The inflation rate has broken through 2 million percent annually. The Zimbabwean dollar, whose exchange rate has slipped from about 400billion to 800billion to the U.S. dollar in four weeks, is no longer ‘accepted’ for purchases of some durable goods.
Huge factory complexes have gone quiet, and most production lines stalled.
‘Whiz kids’ are spotting sound investments in basic commodities. ‘The basic necessity commodity market’ is one place where you can have a rate of return that is of a high magnitude.
Petrol imports, forbidden by the sanctions, generate profits of 1 000 percent or more in hard currency, and enterprises desperate for spare parts and raw materials are willing to pay a hefty markup just to remain afloat.
Ordinary citizens pay hefty amounts for basics. So sanctions ‘kill the poor’ and help those targeted by them to accumulate more wealth, so why use them as a tool?
They make policies murky, and murky policies hurt the vulnerable.
Their usefulness – as a policy tool – has been debated for years, with many arguments concluding that they are ineffective.
Sanctions might have a positive, enduring impact on bargaining dynamics or they could help isolate or weaken the power of government, but is that enough justification for them? Should thousands die to alter bargaining dynamics?
In any case, where conflicts are actually resolved, there has been a combination of sanctions and military force: e.g. Saddam’s Iraq or Milosevic’s Yugoslavia ― both illegally bombed and regimes changed by force after years of sustained sanctions.
Zim Faith • freedominzimbabwe@gmail.com Subject: Sanctions Mon, 21 Jul 2008 16:02:52 • Sanctions wont help at all.
Business on the black market will still thrive as it has done for years upto now.
Remember the saying 'Make A Plan' - thats the Zim way right?
Of course business men dealing in the black market will still make money either in billions and trillions of zim dollars as well as taking what ever forex they can get.
But its not for the good of the average person in Zim, not by a long way. Its to line their pockets as quick as possible before they get found out.
At this stage its a matter of survival for basics like bread and mealie meal...if you are lucky...
Question is how low can we go? - Inflation will still rise and the value of the zim dollar will stll drop substantially...where is the bottom of the barrel?
Yes there is significant imports from neighbouring countries to ease the demand but arent Zanu-PF and MDC going to get our agriculture, mining and tourism back onto its feet? One should certainly hope so.
For all of those who condemn the west, you have a right to your opinion if thats what you believe in but I am afraid without foreign investment the economy cannot survive. Zim was very prosperous through the 80's and early 90's compared to what it is right now. And it has nothing to do with colonialism, get a grip because that is so 60's and 70's. We live in a new era now and a new generation want to also make a living, raise a family and feel safe. Its just at the moment ZANU are afraid to lose power for fear of failure.ZANU should have more faith in the younger generation of Zimbabweans. We were all lucky enough to be raised well with good morals and a healthy upbringing. Zimbabweans are the kindest, generous and friendly people on the planet but we are going through tough times at the moment and we all believe it will come to an end one day. Its just a minority of government, military and business men and women that are holding up the progress and they need to catch up with the rest of the world instead of raping our beautiful country blind.
But at this rate the fighting needs to come to an end and an agreements need to be made quickly about tackling the economy quickly because the situation is getting out of hand and the people are suffering.
Zimbabwe massive • zimbabwelive@aol.com Subject: Itayi Mon, 21 Jul 2008 10:25:41 • Your article as far as I am concerned is totally on point. The most important thing though is that the west are applying these sanctions to show the wider international community that they are not in support of the political crisis in Zimbabwe. Technically, the current government is not a legitimate government because those twits pulled out of the polls at the last minute. The will of the people was not reflected, hence the sanctions.
The inflation in the country is made worse by the government, it, the government, has enough resources to aggressively chase after the black market rate. The bank rate is $60 billion to the U.S. but what is it on the parallel market. Big wigs are operating their businesses and muscling their way into the central bank to buy hard currency at the bank rate and simply sell this on the black market.
That action will never be stopped as long as these entities stay in power and until otherwise, Zimbabwe does not stand a chance.
Everybody wishes Zimbabwe well and the hope is that younger players will eventually come into politics and play ball with the rest of the international community with and only with the interest of the Zimbabwean people and it`s sovernty at heart.
CLARABELLA, MANCHESTER • na. Subject: A BAD MARRIAGE Mon, 21 Jul 2008 10:20:32 • the kids always suffer in a bad marriage.
correct me if I am wrong but isnt this a bad marriage between MDC and ZANUPF cos they are living in sin and not actually going up to the alter to enter into a proper wedding ceremony through which they will sacrifice their own selfish ways for the sake of the kids?
they dont really care about us, or do they?
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