Zimbabwe

							Zimbabwe
By Roger, Scott, and Jessica
          Historic Roots
• President Mugabe has been in power
  since 1980
• Land redistribution
• Four years of erratic rainfall, not
  enough food- terrible famine
Causes of the economic crisis
• 250 Zimbabwe dollars to US $1
• Land crisis
• 2000- Mr. Mugabe seized most land
  owned by white farmers, wrecking the
  development of the economy
• President said redistribution of land
  was necessary to make land more
  equitable post the colonial era
    Government’s Actions
• Mr Gono, the Central bank Governor,
  is trying to bring more foreign
  currency into the official economy
  instead of the black market, where the
  rate is Z$25,000 to $1
• Government shuts down all rallies and
  opposition thoughts
• Government in discussion with China
  to obtain loans
      Impact on the people of
            Zimbabwe
• 80% of Zimbabwe's population of about 13
  million is living below the poverty line
• Exporters claim their businesses have been
  devastated by the skewed exchange rate
• Extreme food
  shortages
  Impact on the South region of
              Africa
• President of South Africa does not
  want to get involved
• South Africa continues to supply
  Zimbabwe with electricity, even
  thought they cannot pay their bills on
  time
                Solutions
• High inflation ->
  – Contractionary fiscal policy
    • Increase taxes
    • Decrease government spending
• China loans money to Zimbabwe,
  backing their currency