Zimbabwe Economy


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Zimbabwe Economy

  2. 2. GROUP MEMBERS  08 – Yash Bothra  09 – Agnelo Cardoz  21 – Sumit Gilitwala  27 – Amol Harbak  33 – Saurabh Jain  38 – Harshit Kanodia
  3. 3. INTRODUCTION Giving more money to certain countries will not necessarily put that country in a better economic position.  Zimbabwe's 1998-2002 involvement in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars.  The Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. 
  4. 4. Let’s take a close look at the current economic conditions in Zimbabwe and reason why their economy is on the brink of failure.
  5. 5. ZIMBABWE ECONOMIC PROFILE 1) 2) 3) 4) 5) 6) 7) GDP - real growth rate GDP - per capita (PPP) GDP - composition by sector Population below poverty line Labor force Unemployment rate Unemployment, youth ages 15-24
  6. 6. 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) Inflation rate Stock of money Agriculture - products Industries Exports Exports - commodities Imports Imports – commodities Exchange rates Fiscal year
  7. 7. NATURAL RESOURCES AND ENVIRONMENT Mineral resources  Water resources and management  Land use  Key Environmental Concerns  Environmental policy and manifestation  Natural hazards 
  8. 8. AGRICULTURE     About half of Zimbabwe is starving to death to due to the failing agricultural sector. President Mugabe instituted the Land Acquisition Act in 2000. It was never properly funded. In 2001 white farmers were immediately forced from their lands.
  9. 9.    The government replaced a class of knowledgeable workers with a group of farmers with far less experience. Land Acquisition Act only amplified a food shortage crisis that is still one of Zimbabwe most prevalent problems. If Zimbabwe cannot provide itself the basic elements of survival, such as clean water and food, there is very little prospect of any economic development.
  10. 10. HYPER-INFLATION    The largest denomination of the former Zimbabwean dollars was not able to buy a loaf of bread. Largest public debt of 240% of country’s GDP. Inflation rate of 231 million percent in July of 2008.
  11. 11.     The price of goods doubles at least once a day. Businesses are refusing to use the currency of the country The currency is not able to properly measure the value of the goods in the market. It was more expensive to work than to not work.
  12. 12. HEALTH CONDITIONS    High birth rate of 3.72 children born per woman, but the country is still experiencing negative population growth. 1,800,000 people of the total population is infected with either HIV or AIDS. 170,000 of those people will die each year.
  13. 13.   Country is battling a cholera epidemic that has killed almost 4,000 people since August and infected another 65,000. the economy will produce far less per-worker than a similar healthy economy.
  14. 14. CURRENT CONDITIONS   Many countries, such as the U.S. and Britain have partially withheld financial support for Zimbabwe. The legislation that installed Tsvangirai as Prime Minister will serve as a check of power against President Mugabe
  15. 15.   The hyperinflation in Zimbabwe has all but killed the Zimbabwean dollar. For years, President Mugabe has been the nation's dictator.
  16. 16. ROBERT MUGABE    Robert Mugabe’s wealth has been estimated to be over a Billion United States dollars in value. Just a few years ago Mugabe built a mansion with 25 bedroom suites for a total cost of $26 to $30 million dollars. That was the fifth estate Mugabe owned since becoming “President”.
  17. 17.     The first family also owns a 29room farmhouse estate that Grace Mugabe saw while touring the countryside. The Mugabe’s also own a penthouse in Malaysia where Grace also owns a diamondcutting business. The First Lady of Zimbabwe makes millions of dollars a year by stealing diamonds from her country’s own diamond mines and selling them. Robert and Grace recently bought a large condo in Hong Kong for their daughter who is attending school there under a fake name.
  18. 18. Robert Mugabe’s house in Hong Kong
  19. 19. 89TH BIRTHDAY CELEBRATION    Mugabe was presented with a cake said to weigh 89kg (196lb). The celebrations cost about $600,000 (£400,000). The nation's central bank governor donated 89 cows to the president.
  20. 20. The president celebrated it by immortalizing himself in freshly minted gold coins.
  21. 21. SOLUTION     The government would allow the exchange rate to float for a period of perhaps 30 days, so that the market would decide its true value. The government could declare some foreign currency to be the nation's official currency. Stop printing unlimited amounts of money. The US dollar, the euro, and the South African rand are candidates