zimbabwe economy


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zimbabwe economy

  2. 2. Group Members <ul><li>Names Rollno </li></ul><ul><li>Kunal Sanghvi 66 </li></ul><ul><li>Akshata Satam 67 </li></ul><ul><li>Aditi Sawant 68 </li></ul><ul><li>Vasundhara Sawant 69 </li></ul><ul><li>Palav Shah 70 </li></ul>
  3. 4. Zimbabwe History <ul><li>Zimbabwe is located in Southern Africa. </li></ul><ul><li>Capital: Harare </li></ul><ul><li>Currency: Zimbabwian Dollar </li></ul><ul><li>Occupation: Agriculture and Mining </li></ul>
  4. 5. <ul><li>Official language: English </li></ul><ul><li>Regional languages: Shona, Sindebele </li></ul><ul><li>Natural resources: coal, chromium, gold, nickel, iron, ore, tin and platinum. </li></ul><ul><li>GDP Growth:-3.6% </li></ul>
  5. 6. <ul><li>Inflation:2,200,000% </li></ul><ul><li>Unemployment:80% </li></ul><ul><li>Main Exports: cotton, tabboco, gold, textile/clothing. </li></ul>
  6. 7. <ul><li>ExportPartners:SouthAfrica,Zambia,China,Japan,Mozambique,Botswana,Italy,Germany,Netherlands. </li></ul><ul><li>Imports: machinery and transport equipment, chemicals, fuels, electricity </li></ul><ul><li>Import Patners: South Africa, China, Botswana. </li></ul>
  7. 8. Political History <ul><li>1923 – British Colony. </li></ul><ul><li>1961 – Constitution was formed in favor of whites in power. </li></ul><ul><li>1980 – Zimbabwe’s Independence </li></ul><ul><li>1987 – Robert Mugabe came to Power </li></ul>
  8. 9. <ul><li>Late 1980’s – Robert Mugabe’s chaotic land redistribution law which caused the economy to cripple and a widespread shortage of basic necessities. </li></ul><ul><li>1998 – 2000 – Zimbabwe’s involvement in the war in Democratic Republic of Congo. </li></ul><ul><li>2008 - Election </li></ul>
  9. 10. Inflation <ul><li>Zimbabwe in the grip of exponentially worsening economic crisis since 2000 </li></ul><ul><li>Inflation accelerating at a very high rate </li></ul><ul><li>Inflation surpassed that of all other nations </li></ul><ul><li>Hyperinflation bankrupted the Government </li></ul><ul><li>Soaring costs </li></ul><ul><li>Increasing fuel prices </li></ul>
  10. 11. Currency Devaluation <ul><li>There is 60% devaluation in the currency </li></ul><ul><li>Black market </li></ul>
  11. 12. 1400–6000 55; 824 2003 380–1740 55 2002 70–340 55 2001 56–70 38 2000 Parallel exchange rate Official exchange rate year
  12. 13. 3,000–2,000,000 revalued dollars (4,000,000 revalued dollars) 250 revalued dollars 30,000 revalued dollars (Sept) 2007 100,000–550,000 (550–3,000 revalued dollars) 85158–101,196 (250 revalued dollars) 2006 6400–100,000 730–26,003 2005 5500–6000, 824–57305 2004
  13. 14. 35 -241,750,000 revalued dollars 30,000 revalued dollars 2008 (Apr)
  14. 15. Unemployment <ul><li>The biggest fear for the country </li></ul><ul><li>Almost 85% are unemployed and remaining 15% are in government jobs </li></ul><ul><li>Loss of half a million jobs </li></ul><ul><li>Disguise unemployment </li></ul><ul><li>Hampered employment in tourism industry </li></ul><ul><li>Loss of employment in agricultural sector </li></ul>
  15. 16. PRODUCTION <ul><li>GOLD </li></ul><ul><li>1998 27,114kg </li></ul><ul><li>2007 7,017kg </li></ul><ul><li>Oil </li></ul><ul><li>0 bbl/day </li></ul><ul><li>Energy </li></ul><ul><li>2003 8.877billion kwh </li></ul>
  16. 17. Industry ENERGY EXPORTS 0 kwh IMPORTS 3.3 billion kwh IMPORTING COUNTRIES D.R.CONGO 9.50% MOZAMBIA 9.00% ZAMBIA 28.5% SOUTH AFRICA 43.0%
  17. 18. OIL <ul><li>EXPORTS 0 BBL/DAY </li></ul><ul><li>IMPORTS 23,000 BBL/DAY </li></ul>
  18. 19. EXPORTS <ul><li>TOTAL EXPORTS USD$ 1.775 </li></ul><ul><li>EXPORT GOODS </li></ul><ul><li>COTTON </li></ul><ul><li>TOBACCO </li></ul><ul><li>GOLD </li></ul><ul><li>ALLOYS </li></ul><ul><li>TEXTILES </li></ul><ul><li>MAIN EXPORT PATNERS </li></ul><ul><li>SOUTH AFRICA 36.4% </li></ul><ul><li>CHINA, JAPAN, ZAMBIA 7.3% EACH </li></ul><ul><li>MOZAMBIQUE 4.7% </li></ul><ul><li>U.S, BOTSWAVA, ITALY, GERMANY, NETHERLANDS 3.6% EACH </li></ul>
  19. 20. Balance of Payments 40 Current transfers -294 Balance on income -329 Balance on services 158 Balance on goods - 425 Current Account
  20. 21. ---- Portfolio investment assets ---- Direct investment in Zimbabwe ---- Direct investment abroad - 26 Financial Account 284 CapitalAccount
  21. 22. 86 Reserves and Related Items 80 Net Errors and Omissions ----- Other investment liabilities ----- Other investment assets ----- Portfolio investment liabilities
  22. 23. Food Crisis <ul><li>Land Redistribution Law </li></ul><ul><li>Heavy Rainfall </li></ul><ul><li>Suspension of Private Imports </li></ul>
  23. 24. <ul><li>The people affected in different regions are as follows: </li></ul><ul><li>Matabeleland </li></ul><ul><li>Masvingo </li></ul><ul><li>Mashonaland </li></ul><ul><li>Midlands </li></ul><ul><li>Harare </li></ul><ul><li>Manicaland </li></ul>
  24. 26. Human Rights <ul><li>Police repression </li></ul><ul><li>Child soldiers </li></ul><ul><li>Discrimination </li></ul><ul><li>Human trafficking </li></ul>
  25. 28. Diseases <ul><li>Food or waterborne diseases: bacterial and protozoan diarrhea, hepatitis A, and typhoid fever </li></ul><ul><li>Vector borne disease: malaria </li></ul><ul><li>Malnutrition </li></ul><ul><li>HIV/ AIDS </li></ul>
  26. 30. What should be done?
  27. 31. <ul><li>Political reforms </li></ul><ul><ul><li>negotiated settlement on a Tsvangirai-led transitional government. </li></ul></ul><ul><ul><li>political agreement between the MDC and ZANU-PF </li></ul></ul><ul><ul><li>Tsvangirai-led transitional government with substantial participation by ZANU-PF </li></ul></ul>
  28. 32. <ul><li>Economic reforms </li></ul><ul><ul><li>careful management of domestic debt </li></ul></ul><ul><ul><li>adoption of new economic policies </li></ul></ul><ul><ul><li>balance of payments support </li></ul></ul><ul><ul><li>the negotiation of substantial credit lines </li></ul></ul><ul><ul><li>exchange rate policy & a move towards positive real interest rates </li></ul></ul>
  29. 33. <ul><li>Solution to food crisis </li></ul><ul><ul><li>close by countries should provide emergency relief </li></ul></ul><ul><li>Reformation of Banking sector </li></ul><ul><ul><li>restoration of the ailing banking sector </li></ul></ul><ul><ul><li>return the central bank to its traditional role </li></ul></ul>
  30. 34. <ul><li>Land reforms/ land redistribution </li></ul><ul><ul><li>Nationalize the productive land </li></ul></ul><ul><ul><li>Employ farming expert management </li></ul></ul><ul><ul><li>The restoration of property rights </li></ul></ul><ul><ul><li>The market for agricultural land </li></ul></ul><ul><ul><li>Effective isolation from the financial institutions; </li></ul></ul>
  31. 35. <ul><li>The reticence of farmers & professional to return to Zimbabwe </li></ul><ul><ul><li>more than three million Zimbabweans have fled </li></ul></ul><ul><ul><li>an injection of external development assistance & technical help with agricultural extension services. </li></ul></ul><ul><ul><li>Professional classes return under a new regime if they can see bright prospect in its reformation process. </li></ul></ul>
  32. 36. <ul><li>Role of IMF & World bank </li></ul><ul><ul><li>substantial budget support and balance of payments </li></ul></ul><ul><ul><li>support in the form of long-term loans from the IMF and World Bank </li></ul></ul><ul><ul><li>can contribute to help overcome acute shortage of foreign </li></ul></ul><ul><ul><li>exchange and earn good export revenues </li></ul></ul>
  33. 37. <ul><li>Thank You </li></ul>
  34. 38. <ul><li>International support and aid </li></ul><ul><ul><li>need to be treated as a disaster zone </li></ul></ul><ul><ul><li>assistance to recapitalize the country especially for agriculture.&quot; </li></ul></ul>
  35. 39. <ul><li>Role of faith based organizations </li></ul><ul><ul><li>bringing democratic change </li></ul></ul><ul><ul><li>build community </li></ul></ul><ul><ul><li>civic culture </li></ul></ul><ul><ul><li>combat illiteracy </li></ul></ul><ul><ul><li>bring more discipline to an individual’s life & community </li></ul></ul><ul><ul><li>brings about a respect for rule of law, tolerance </li></ul></ul><ul><ul><li>spiritual, physical and eventually economical prosperity </li></ul></ul>
  36. 40. <ul><li>West support </li></ul><ul><li>Assistance for creating economic and democratic institutions </li></ul><ul><li>Development of incentives for its stable functionality </li></ul>