Economic Essay - Inflation in Zimbabwe

Topics: Inflation, Robert Mugabe, Zimbabwe Pages: 2 (462 words) Published: November 11, 2010
Economic Essay - Inflation in Zimbabwe
As we all know, inflation in Zimbabwe is the most worst ever, with the rate of inflation increasing every single hours. Currently, the estimated Zimbabwe’s annual inflation rate is at 89.7 sextillion (1021) percent, and the prices keep doubling actively increasing every 24.7 hours. Inflation was stable until Robert Mugabe began a program of land reforms that primarily focused on taking land from white farmers and redistributing those properties and assets to black farmers; this in turn sent food production and revenues from export of food plummeting, one more main reason that contributed to inflation in Zimbabwe was a monetary phenomena (the result of Mugabe's government printing money) as can be seen by the appearance of ever higher face value printed notes, whose face value exceeded the sum of all previously existing notes. Some effects of inflation are; it causes mal-investment (in inflation times, the data given about an investment is often deceptive and unreliable, therefore causing losses in investments). It also lowers national saving (when there is a high inflation, saving money would mean watching your cash decrease in value day after day, so people tend to spend the cash on something else). Unemployed young men in the area work as baggage carriers for traders travelling to Mozambique. Young women sometimes turn to prostitution at the border post, where truck drivers from across the region spend about three days for customs and immigration clearance. The government of Zimbabwe and the international community has failed to protect the children in Zimbabwe, leaving them vulnerable for even more human rights abuses, such as sexual and physical abuse, and making them even more susceptible for illness and disease. Even more, some children are sold by their parent just for to feed others. School is nothing, meaning ‘knowledge costs more expensive’, because they don’t even can afford to buy school uniform, books and...
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