11-22-2018, 11:25 PM
*** 23-Nov-18 World View -- Zimbabwe proposes to compensate white farmers as hyperinflation returns
This morning's key headlines from GenerationalDynamics.com
****
**** Zimbabwe proposes to compensate some white farmers whose lands were seized
****
![[Image: g181122b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g181122b.jpg)
The Norea Korea-trained Fifth Brigade of Mugabe's Zimbabwean army demonstrates karate in May 1984 at Rufaro Statium in Harare, Zimbabwe. In 1983, the Fifth Brigade committed a massive slaughter of the Ndebele tribe in a massive genocide called Operation Gukurahundi
In the 1990s, Zimbabwe used to be the breadbasket of southern Africa,
growing much more food than the country needed and exporting the rest.
Then in 1999, president Robert Mugabe instituted a "land reform" plan.
The Mugabe government seized, without compensation, farms owned by
white farmers, farms that were operating well and producing a great
deal of food. The farms were given to cronies in Mugable's Shona
tribe, who knew nothing about farming. By 2002, Zimbabwe's farmland
was in ruin and people were starving. Zimbabwe had been a food
exporter, but became a food importer.
Now suddenly, and unexpectedly, Zimbabwe's government is proposing to
compensate white farmers whose land was seized without compensation.
On Thursday, Zimbabwe's finance minister Mthuli Ncube, who was trained
at University of Cambridge and was appointed to his new post in
September, issued his proposed budget for 2019. Buried deep in his
budget document are the following paragraphs:
<QUOTE>"202. Government is committed to finalizing the issue
of compensation to former white farm owners who were affected by
the Land Reform Programme, in accordance with the country’s law
and commitments under the various bilateral agreements and the
Constitution. ...
206. In the interim, the 2019 Budget proposes to avail US$53
million towards payment of compensation to former white farm
owners, whose disbursement will be targeted."<END QUOTE>
The proposal acknowledges that the $53 million in the budget is only a
tiny fraction of the total compensation that would be required, so
this is only a first step. But why do it at all? Has the government
of Zimbabwe suddenly developed a conscience.
The answer is that Zimbabwe is no longer able to borrow money from the
World Bank, until some of Zimbabwe's previous debts have been
resolved. In particular, the United States is demanding that Zimbabwe
provide at least partial restitution to for land seized from white
farmers, before it will approve of any further World Bank loan to
Zimbabwe. So Ncube is proposing a nominal payment of restitution to
white farmers so that Zimbabwe, which is drowning in debt already,
might be able to borrow more money from the World Bank.
So Zimbabwe is being forced, most assuredly against its will, to
compensate white farmers for stolen land, so that Zimbabwe can go
further into debt. That sounds like Karmic justice to me.
According to the World Bank: "Zimbabwe has enormous potential given
its generous endowment of natural resources, an existing stock of
public infrastructure, and comparatively well skilled human
resources. However, realizing this will require prompt action to
correct fiscal policies, re-stabilize the monetary system, and resolve
arrears to international lenders that would allow for a resumption of
development financing." Australian Broadcasting (5-Sep-2002) and Daily News (Zimbabwe) and Zimbabwe Finance Ministry and World Bank
****
**** Hyperinflation returns to Zimbabwe
****
After Mugabe's land seizures left the farmlands in ruin and the people
starving, Zimbabwe began importing food. Mugabe was printing money to
pay for imports, causing rapid inflation and then hyperinflation,
which exceeded one million percent by 2009, making Zimbabwe currency
worth less than toilet paper. Half the population was in severe
poverty, with the greatest poverty among Mugabe's hated enemy, the
Ndebele tribe.
The US dollar became the official currency, and for a few years the
economy started to grow again. But in 2016, Mugabe started spending
lavishly again, resulting in unsustainable fiscal deficits, and a
cutoff of World Bank loans.
Since Zimbabwe was running out of foreign reserves (US dollars),
Mugabe in December 2016 introduced the bond note,
a new paper currency with each bond note worth one
US dollar. Mugabe said that only a limited number of bond notes would
be printed, so that hyperinflation would not recur.
However, bond note inflation has been occurring. According to
official figures, the inflation rate was 20.9% in October. However,
one analyst says that the official inflation rate is not accurate:
<QUOTE>"The inflation print fails to account for the widening
black market premium and therefore does not show the actual rate
at which prices are rising in the informal market. October’s
rapid increase in prices is likely to lead to even more confusion
and panic among local consumers."<END QUOTE>
The black market inflation rate is 244.6%. Zimbabwe Herald and Bloomberg and New Zimbabwe
Related Articles:
KEYS: Generational Dynamics, Zimbabwe, Shona, Nbdele,
Robert Mugabe, Operation Gukurahundi,
Mthuli Ncube, bond notes
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Zimbabwe proposes to compensate some white farmers whose lands were seized
- Hyperinflation returns to Zimbabwe
****
**** Zimbabwe proposes to compensate some white farmers whose lands were seized
****
The Norea Korea-trained Fifth Brigade of Mugabe's Zimbabwean army demonstrates karate in May 1984 at Rufaro Statium in Harare, Zimbabwe. In 1983, the Fifth Brigade committed a massive slaughter of the Ndebele tribe in a massive genocide called Operation Gukurahundi
In the 1990s, Zimbabwe used to be the breadbasket of southern Africa,
growing much more food than the country needed and exporting the rest.
Then in 1999, president Robert Mugabe instituted a "land reform" plan.
The Mugabe government seized, without compensation, farms owned by
white farmers, farms that were operating well and producing a great
deal of food. The farms were given to cronies in Mugable's Shona
tribe, who knew nothing about farming. By 2002, Zimbabwe's farmland
was in ruin and people were starving. Zimbabwe had been a food
exporter, but became a food importer.
Now suddenly, and unexpectedly, Zimbabwe's government is proposing to
compensate white farmers whose land was seized without compensation.
On Thursday, Zimbabwe's finance minister Mthuli Ncube, who was trained
at University of Cambridge and was appointed to his new post in
September, issued his proposed budget for 2019. Buried deep in his
budget document are the following paragraphs:
<QUOTE>"202. Government is committed to finalizing the issue
of compensation to former white farm owners who were affected by
the Land Reform Programme, in accordance with the country’s law
and commitments under the various bilateral agreements and the
Constitution. ...
206. In the interim, the 2019 Budget proposes to avail US$53
million towards payment of compensation to former white farm
owners, whose disbursement will be targeted."<END QUOTE>
The proposal acknowledges that the $53 million in the budget is only a
tiny fraction of the total compensation that would be required, so
this is only a first step. But why do it at all? Has the government
of Zimbabwe suddenly developed a conscience.
The answer is that Zimbabwe is no longer able to borrow money from the
World Bank, until some of Zimbabwe's previous debts have been
resolved. In particular, the United States is demanding that Zimbabwe
provide at least partial restitution to for land seized from white
farmers, before it will approve of any further World Bank loan to
Zimbabwe. So Ncube is proposing a nominal payment of restitution to
white farmers so that Zimbabwe, which is drowning in debt already,
might be able to borrow more money from the World Bank.
So Zimbabwe is being forced, most assuredly against its will, to
compensate white farmers for stolen land, so that Zimbabwe can go
further into debt. That sounds like Karmic justice to me.
According to the World Bank: "Zimbabwe has enormous potential given
its generous endowment of natural resources, an existing stock of
public infrastructure, and comparatively well skilled human
resources. However, realizing this will require prompt action to
correct fiscal policies, re-stabilize the monetary system, and resolve
arrears to international lenders that would allow for a resumption of
development financing." Australian Broadcasting (5-Sep-2002) and Daily News (Zimbabwe) and Zimbabwe Finance Ministry and World Bank
****
**** Hyperinflation returns to Zimbabwe
****
After Mugabe's land seizures left the farmlands in ruin and the people
starving, Zimbabwe began importing food. Mugabe was printing money to
pay for imports, causing rapid inflation and then hyperinflation,
which exceeded one million percent by 2009, making Zimbabwe currency
worth less than toilet paper. Half the population was in severe
poverty, with the greatest poverty among Mugabe's hated enemy, the
Ndebele tribe.
The US dollar became the official currency, and for a few years the
economy started to grow again. But in 2016, Mugabe started spending
lavishly again, resulting in unsustainable fiscal deficits, and a
cutoff of World Bank loans.
Since Zimbabwe was running out of foreign reserves (US dollars),
Mugabe in December 2016 introduced the bond note,
a new paper currency with each bond note worth one
US dollar. Mugabe said that only a limited number of bond notes would
be printed, so that hyperinflation would not recur.
However, bond note inflation has been occurring. According to
official figures, the inflation rate was 20.9% in October. However,
one analyst says that the official inflation rate is not accurate:
<QUOTE>"The inflation print fails to account for the widening
black market premium and therefore does not show the actual rate
at which prices are rising in the informal market. October’s
rapid increase in prices is likely to lead to even more confusion
and panic among local consumers."<END QUOTE>
The black market inflation rate is 244.6%. Zimbabwe Herald and Bloomberg and New Zimbabwe
Related Articles:
- Zimbabweans on panic buying spree as 'bond notes' crash (07-Oct-2018)
- Zimbabwe's post-election violence raises concerns about economy (04-Aug-2018)
- Zimbabwe bans food imports as new 'bond note' currency crashes (21-Oct-2017)
- Venezuela's currency becomes worthless, as Zimbabwe introduces new currency (08-Dec-2016)
- Zimbabwe launching a Soviet style command agriculture program (20-Aug-2016)
- 'Liberation Hero' Robert Mugabe now destroys Zimbabwe with cholera (08-Dec-2008)
KEYS: Generational Dynamics, Zimbabwe, Shona, Nbdele,
Robert Mugabe, Operation Gukurahundi,
Mthuli Ncube, bond notes
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
