Mugabe feeds inflation cycle in Zimbabwe

Telegraph:

The collapse of Zimbabwe's economy has finally taken its toll on President Robert Mugabe's regime. It is facing a disintegrating army and police, a wave of strikes, power black-outs and the breakdown of every essential service.

With inflation running at 1,281 per cent – the highest rate in the world — Mr Mugabe finds himself locked in a vicious circle.

It takes only a few weeks for the value of every pay rise given to civil servants to be wiped out. But the bankrupt regime can only cover the cost of further wage rises by printing money – which fuels inflation still further and creates pressure for yet more pay increases.

Tension on the streets of the capital, Harare, was mounting yesterday as people scavenged to earn extra money for food and transport. Some of those fortunate enough to have jobs cannot even afford bus fares.

In what was once one of Africa's most prosperous economies, a 35-year-old primary school teacher with six years' service earns £13 a month.

The woman, who wished to remain anonymous, said: "My take-home pay is not enough for transport to work, so I am not going to school this week."

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Zimbabwe's four largest hospitals are crippled by a seven-week strike among junior doctors, who earn only £6 a month after deductions. All civil servants received a 300 per cent pay rise in January – but inflation has already eroded this gain.

Cholera has broken out in Harare because the water treatment plants are collapsing. Power black-outs are increasing and one town, Chitungwiza, gets only four days of electricity a week.

Mr Mugabe responded by saying that any protests "will not be tolerated".

But he relies on the army and police to suppress challenges. Sources in the army say that soldiers – while far better paid than teachers or nurses – are still enduring "desperate" conditions. Most of those below the rank of colonel earn less than $1 [51p] per day – the international measure for absolute poverty.

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Senior figures in the ruling Zanu-PF party can buy US dollars from the Reserve Bank at the meaningless official exchange rate – and then sell them on the parallel market at a 2,000 per cent profit. They can buy fuel from the state at one twelfth of the market price. This gives a powerful core of Zanu-PF figures a vested interest in keeping Mr Mugabe in power.

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The sooner the collapse comes and Mugabe is deposed the better for those unfortunate enough to live in this economic hell hole. Incompetence in governance is a characteristic of many African countries, but Zimbabwe is setting new heights of incompetence on a daily basis. Mugabe needs to be separated from teh printing press as soon as possible. Whether he will be separated by death or some other means, it needs to happen soon.