Zimbabwe is in the throes of an economic crisis characterised by four-digit inflation, shortages of basic foodstuffs like cooking oil and sugar, and massive unemployment.
So they are reacting:
The Southern African Development Community is preparing an economic rescue package for Zimbabwe which would include extending the rand monetary area into the impoverished country, reports said Sunday.
This is in an effort by the 14-nation regional bloc to stabilise the exchange rate of the Zimbabwe dollar and curb inflation, now estimated at a world record 5,000 percent, The Sunday Independent reported.
The SADC secretariat Tomaz Salamao was tasked at a summit in March to study ways and means through which the regional trading bloc could assist in the economic recovery of Zimbabwe.
It was at the same summit where South African President Thabo Mbeki was mandated to mediate between President Robert Mugabe's ruling ZANU-PF and the opposition.
According to the new plan, Zimbabwe would be included in the multilateral monetary area (MMA), which now includes neighbouring South Africa, Namibia, Lesotho, and Swaziland, making the rand a legal tender in Zimbabwe, the paper said quoting unidentified sources.
The neighbouring countries would also pump millions into the Zimbabwe reserve bank, effectively propping up the Zimbabwe dollar which has become almost worthless, and put its exchange rate with foreign currencies at the same level as the rand.
Mugabe with more resources? They could make 5-lb gold bars the legal tender of Zimbabwe and it wouldn't make a difference. SADC can send all the help they want, but it won't be enough. Mugabe screwed up a prosperous Zimbabwe. He will screw up a basketcase Zimbabwe propped up with some aid.
SADC would do better to send in special forces and snatch Mugabe and send him into comfy exile.
But at least with this method, when Zimbabwe collapses the southern African countries can comfort themselves with the thought that at least they tried to help. And it only cost some cash that Western countries will probably pay for in the end.
The illusion of action counts for something, right?
This is a scenario to invoke the Lexington Rule. The UN should void Zimbabwe's nation status and just let whatever neighboring countries care to take over part or all of Zimbabwe move in and annex the territory. It would be nice if South Africa would take the whole place, but if South Africa just took part, at least part of Zimbabwe would be run decently.
Or we can pretend that Zimbabwe just needs a little currency stabilization. That illusion counts for a lot in our current system.
UPDATE: Producers don't want to produce when they can't make a profit:
Zimbabwe's Industry Minister Obert Mpofu ordered businesses a fortnight ago to halve the prices of all goods and services in a bid to curb spiralling inflation but the edict has been widely ignored.
Many manufacturers say the government-set prices mean they cannot cover their costs and have stopped production, leading to widespread shortages of basics such as cooking oil and salt.
Who'd have thought that the Zimbabwe authorities would make matters worse?
