Zimbabwe's economic demise

Grant Ferrett:

Power cuts have become a common occurrence in Zimbabwe, an indication of the country's economic demise.

Another sign was provided by the cost of just a short taxi journey into the centre of the capital, Harare, which came to 250,000 Zimbabwe dollars.

When I first arrived in Harare seven years ago, the exchange rate was 38 Zimbabwe dollars to the pound. The unofficial rate is now about 25,000 to one.

The plunging value of the local currency and the correspondingly breathtaking rise in inflation - currently down, officially, to a relatively modest 130% a year - has made life very complicated, as well as very expensive for most Zimbabweans.

For a start, it is difficult to keep track of prices which are constantly changing and you have to carry wads of notes. One celebrated cartoon shows robbers holding up a man who is pushing a wheelbarrow full of cash. The attackers demand that their victim throw out the worthless banknotes and hand over the wheelbarrow.

The introduction of a 20,000 dollar note reduced the inconvenience. But close examination reveals that the notes, known as bearer cheques, have an expiry date of 31 December 2004.

They were clearly intended to be a temporary measure, but because Zimbabwe's economic collapse has continued, they are still needed. They also have the number 50 written in the corner. They were introduced in such a hurry that the authorities simply used the template of the old 50 dollar note.

In what used to be my local shopping centre in Harare, there were empty shelves. Shortages have afflicted the country for the past five years.

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