Why should people work so hard for themselves for nothing?

It has been known that over the years, Zimbabwe and South Africa have been through a great amount together. South Africa has definitely helped Zimbabwe a great deal, and been there for Mugabe and its people through all the thick and thin, when others were not there. One example of this is with the imports from South Africa to Zimbabwe, such as food, when there was barely anything on the shelves in Zim. Zimbabwe went from there being nothing to many varieties of South African food goods. However, as Malcom Sharara, from News24, states it in the article that Zimbabwe has a love-hate relationship with South Africa. This is because the trade affair is not exactly even.

 

The governor of The Reserve Bank of Zimbabwe, Gideon Gono said that 60% of Zimbabwe’s’ imports are from South Africa. It is not a bad thing that the imports are from South Africa (at least Zimbabwe is helping another African country produce, and not an international country). It is the fact that the products that are being imported are finished and completed. Not even half-heartedly done. I completely agree with Gono not being happy with this, and the fact that it is not going to help the Zimbabwe economy grow, because they are spending more on imports than they are selling as exports.  The people of Zimbabwe are slowly getting unemployed or staying unemployed because there are no available jobs for them, due to the fact that all the products are completed in South Africa. I for one know that this is not because the people in Zimbabwe are incapable of producing the same product; it is because there are no resources in Zimbabwe such as the machinery and raw materials. This is what Gono is trying to put across which is extremely delightful to see that someone in Zimbabwe is actually stating the obvious and trying to sort it out. This is on of the basics that Zimbabwe is lacking and so from here onwards it could hopefully only get better.

 

Trade has increased from $4.6bn in 2011 to $5.9bn in 2012. This is not a bad thing that trade has increased, because this is what is actually help keeps the economies going, and some people satisfied. However what needs to be changed is the fact that more foreign currency is leaving Zimbabwe than is coming in, making it poorer. When the people of South Africa want to invest in Zimbabwe, the problem lies with them trusting the economy and making sure that their money is safe. As soon as there is any failure in Zimbabwe, Mugabe is not afraid to take anyone’s assets away from them in order to help the economy. Not even an explanation is needed. Why should people work so hard for themselves for nothing?

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Multi-currency or not?

It was about a decade ago when Zimbabwe went into recession, and the country struggled a great deal with petrol shocks, economic crisis, food shortages and homeless people. The reason for this big problem was because there was such great inflation. The Reserve Bank of Zimbabwe carried on printing more and more Zimbabwe dollar notes as soon as they ran out, which created hyperinflation therefore decrease the value of the Zimbabwe dollar. This what lead to Zimbabwe using multi-currencies/ international currencies such as “the United States dollar, Botswana Pula, British pound and South African rand to stem 
hyperinflation that had made the local unit worthless”, said Ndamu Sandu.

One Hundred Trillion Zimbabwe Dollars

One Hundred Trillion Zimbabwe Dollars

When Zimbabwe started using these different currencies, it definitely did help the situation in Zimbabwe a great deal. There were very few or no petrol ques and there was food on the shelves that was imported from South Africa or produced in Zimbabwe. However, this does not mean that the full economic crisis was resolved, as one can see that Zimbabwe is still struggling with the violence and politics that is taking place. And the country does not look nearly as close to how it should look, such as the conditions on the roads, shops, schools, business etc. I have witnessed this with my own eyes. It has been very good for the country and its people to use multi-currencies in order for the country to be more civilized. In saying that, Zimbabwe is seen as an independent country and so I feel that it should and would be advisable for Zimbabwe to have its own currency again. If the Reserve Bank of Zimbabwe did what a bank is supposed to do and not just print money because the feel they need to, the Zimbabwe dollar would hopefully stay strong and the economy would work in the way it should, with the people working and bartering with one another so that the economy flows naturally.

With the new constitution of Zimbabwe and the elections that are hopefully going to take place in July, Zimbabwe might bring back their own currency? If so, I feel that it is extremely wise for them to approach the Economic Commission for Africa (ECA) for advise on how to go about controlling the hyperinflation and resolving the ‘economic shocks’.  In doing so, Zimbabwe’s economy may improve dramatically, however the central bank must not print notes as soon as they see a shortage. The international community whom has strong economies already must control that this does not take place.