Tuesday, August 08, 2006

A Government That Steals From Its Citizens

After the euphoria of independence which lasted over 8 years the government of Zimbabwe failed to stimulate the economy. They then disastrously adopted the IMF & World Bank's ESAP(Economic Structural Adjustment Programme) dubbed Eat Sleep And Pray. This lead to a 40% drop in manufacturing output between 1990 and 1995 and a plummeting of living standards. In 1996 a general strike took place by public servants opposed to an effective wage cut and 25,000 job losses carried out by the government at the behest of the IMF. In March 1997 The War Victims Compensation Fund was suspended pending an investigation that high-level government officials and their relatives had looted more than US$450 million in only eight months. The suspension prompted violent demonstrations and riots by veterans of Zimbabwe's civil war, a key constituency of the president and his ZANU-PF party. Mugabe eventually conceded to pay out more than US$2 billion in unbudgeted gratuities to placate the veterans. To pay for this Mugabe resorted to the printing presses, fuelling inflation, and also imposing a massive hike in general sales tax. This further inflamed the protests culminating in 'Red Tuesday' on 9 December 1997 when over one million joined an anti-government stay-away general strike. Its also in 1997 that we learn that Mugabe had agreed to fight rebels on behalf of Laurent Kabilla in the Democratic Republic of Congo. All along since 1988 the exchange rate between the Zimbabwean dollar and the US dollar was 8 to 1, it changed the day the war veterans were paid it fell from 8 year high to 26 to 1. The economy has never recovered from this.

In 2000 smarting from the defeat of the referendum on a new constitution, he embarked on a violent take over of farms under the guise of land distribution. The results are well documented, he destroyed the highest earner in terms of foreign currency and tax for the government. After the chaotic takeover of farms, no investor felt safe with his money in Zimbabwe consequently investment started drying up. Foreign currency became scarce which Zimbabwe had earned by virture of being the third largest producer of tobacco in the world. The shortage created a pararrel market which they have tried to quell with no success. The facts and figures will be familiar to you. I'll mention them only briefly: Real GDP fell by almost 30 percent from 1997 to 2003, and the trend has continued through 2005. Inflation is at 1000% and on the rise. If the government continues to print money to meet its obligations it could well drive inflation into quadruple digits. Manufacturing has shrunk by 51% since 1997 and exports have fallen by half in the past four years. Almost every major economic indicator has declined significantly since 2001. The investment and operating environment is dismal. Foreign direct investment has evaporated from US$444 million in 1998 to US$9 million in 2004.

The when the illegal government could not tame inflation after printing money to pay IMF and service its debt. Zimbabwe started printing high denomination bearer cheques, a bank note equivalent, following cash shortages which saw banks running out of cash and customers waiting long hours for cash deliveries.As hyper-inflation struck, millions became "millionaires" overnight carrying wads of notes to buy groceries. Zimbabwe's Reserve Bank slashed three zeroes from its currency last Monday to help consumers battling with bundles of money on shopping trips which can cost billions and trillions of local dollars. The change, which ushered in a new currency, is also aimed at compelling individuals and companies to bring in billions of dollars stashed away in safes and combating a burgeoning black market in currency and herein lies the tittle of my piece today. Since Monday state television has been screening an advertisement in which an ecstatic housewife hails the currency change saying a loaf of bread which cost Z$200 000 Zimbabwe dollars "now costs only Z$200 dollars. The central bank gave a 21-day ultimatum to hand in the old bearer cheques and imposed thresholds on amounts that can be deposited in banks in an apparent crackdown on hoarders. Those found with cash exceeding the limit will have to reveal the source or forfeit the money and face prosecution for money laundering. Shop owners have also been barred from accepting cash payments of more than Z$100m Zimbabwe dollars for goods and services.

The changes are cosmetic they do not address the underlying problem that has affected the economy. Especially the slashing of three zeros is meant to hoodwink ordinary Zimbabweans into thinking that goods are now cheaper. But the situation is going to remain the same. No direct investment is coming to Zimbabwe, shortages of basic commodities will continue. As I write reports are coming in that fuel has been hiked by 50%

THERE IS NO JUSTICE ITS JUST US

Zimbabweans living in UK have been dealt a raw deal by the powers that be. The latest ruling by the UK Supreme Court that failed Zimbabwean asylum seekers can be deported, has left many comrades physically and emotionally drained. While the ruling protects genuine Zimbabwean opposition party activists based in UK, it fails to protect other genuine Zimbabweans fleeing political persecution whose claims were rejected by the Home Office. While the granting of a refugee status is subject to a lot of conditions, some claims that the Home Office have granted the elusive status shows discrepancy. Take Makosi the UK trained Zimbabwean born cardiac nurse, who breached her terms of employment by participating in Big Brother in pursuit of fame, when she was booted out of the show she was asked to leave UK upon which she then sought asylum. She was granted asylum on the flimsiest of excuses yet there are thousands genuine asylum seekers whose fear of torture and persecution is founded and their claims are thrown out.

Even if you look at the Home Office challenge their right to lift the reprieve on deportations of failed asylum seekers. The welfare of the returned deportees is not much of a concern to the Home Office. Its department of the UK government which under pressure compounded by right wing press who fuel racial fears based on the rising number of asylum seekers in UK. Other than that its also a department which is ruled by statistical targets, to put very blunt for that's what it is: say if 10 people seek asylum then 7 have to be rejected whether the claims are genuine or not. Just before the run up to the UK parliamentary election last year the Conservatives made a pledge in their election manifesto to deport any asylum seeker who exceed an annual quota of 20000 irregardless of whether their claims were genuine or not. While the incumbent Labour government has already set a target to deport more people than those that make asylum claims. This is opportunist political campaign that puts lives of real people not mathematical numbers at risk. Its clear when the first ruling was made in favour of Zimbabweans that the Home Office cared little about the welfare and well being of deportees. They admitted that they did not know what happened to deportees once thy had been handed back to Zimbabwean authorities. Now during their appeal they said they had put an official within their foreign office in Harare. What would he possible do, the evil of Robert Mugabe is not being over-stated, we are dealing with a callous regime, so barbarous is this regime that once they attacked the Canadian High Commissioner to Zimbabwe.

The situation in Zimbabwe itself has not changed. If anything has to be said about Zimbabwe lets talk about the deteriorating situation there. As of recently the leader of the Zimbabwean Christian Alliance, a civic body whose recent Save Zimbabwe conference brought all opposition parties to the table to discuss way of removing Mugabe unitedly was arrested together with his compatriots and released without charge. The last time the British government has ever done a debate on Zimbabwe was back in 2004. So events in Zimbabwe have continued to deteriorate, the economic collapse of Zimbabwe is there for everyone to see. The UK government through its foreign Office which gives advice to British tourists traveling to other countries, issues a warning that Britons should not travel to Zimbabwe its not safe. As a matter of fact this is the advice that the Foreign Office issues in full on their website you can also check it yourself here:

The deportation of Zimbabweans is big business, it costs over £8000 to fly a one person on a chartered plane as they cannot fly on a commercial airline. Even before commercial airlines stopped carrying deportees, British Airways and its shareholders profited from an average 5,000 deportations a month. They don't care about the lives they endanger, but they do care about their image and don't like being disturbed by actions and protests. Missing a take-off slot also means a £10,000 fine, and similar actions in Belgium forced commercial airlines to stop deporting asylum seekers, so keep it up!Immigration Detention Centers (IDC) are run for profit by the same companies that are running the new private prisons, and immigration detainees are also held in HM Prisons - an entire wing of HMP Rochester is devoted to refugees. Immigration detention is the most horrendous abuse of life and liberty in the UK. Refugees are imprisoned without charge, trial, time limit or proper reason given. Most are political asylum seekers fleeing danger, torture and death threats.

At the moment we are exhorting everyone from Zimbabwe who is in an unsure situation concerning their status in UK to contact their local branch of MDC were they can obtain advice. Remember to read the ruling in its entirety and you will find solace in the fact that the judge said that proven activists cannot be deported. So continue attending the Vigils, the Demonstrations and together we will find away. Also remember that its not only us here in UK who are suffering, asylum seekers in South Africa are getting the rawest deal. The recent report published today by Human Rights Watch is a depressing read.