Zimbabwe, the tiny African nation, has been in the news for its violence, politics and now for its economy. The sad part of the story is that this small nation with a land area 1.5 lac sq.km has every potential to be a prosperous nation if it had the good luck to get a proper governance.
The president Mugabe is more keen on containing his rivals in the media and persons who criticise his policies. Mugabe seized large extent of land cultivated by the whites and distributed among the locals which resulted in the fall of agricultural income as the locals had not as much expertise as the whites The production went down so sharply it could not even meet the domestic needs. The foreign exchange coming from import of Agricultural production was thus stopped. Similarly a ban on mining by private parties stopped income from that source too. Now practically there is no source of income for the country
The borrowings from the I.M.F remains unpaid and as a result of it the Fund has stopped paying more to the nation.
Over the years the budgetary deficits were covered by printing money which has now pushed the country to absurd levels of inflation. Now the currency has not even its paper value. None would accept that currency. It is a complete collapse of economy.
The currencies now used in Zimbabwe are those of South Africa, Botswana and the Pound Sterling . The country's own currency has not been revived from its 'coma'. and also the mismanagement and corruption have not been changed yet.
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