ZIMBABWE CRISIS 2015

GROUP-09

KANCHAN BHAIYA-09

DARSHIKA JAIN-24

SONAM PATIL-

PRANIT SHAH-53

RITU BHANSHA

LI-

SIDDHANT JAIN-

KUSHANG JAIN-

Landlocked country in southern Africa.Home of the Victoria falls.Amazing Wildlife.The breadbasket of Africa.

Background about Zimbabwe

FactIn Numbers

(1st January 2012)Putting things into

perspective

Population 13 MillionAbout twice the size of

Dhaka.

GDP 6.21 Billion46 times smaller than the

GDP of Bangladesh

GDP per Capita $500Almost one third of what each Bangladeshi earns

Unemployment 95% Highest in the world

Current President Robert Mugabe

Head the first government as prime minister on 4 March

1980

MAN BEHIND THE PROBLEMS

Food shortages

Health

HIV/AIDS

Migration & Displacement

Land redistribution

Current Situation of Zimbabwe

•2000:Mugabe's ruling ZANU-PF party wins parliamentary polls amid charges of fraud and vote rigging by the opposition.•2001 - Zimbabwe suffers food shortages that government critics blame on farm seizures, but Mugabe blames on drought.•2002 - Mugabe wins new six-year term in elections. Observers condemn poll as flawed and unfair.•2003 - Hundreds of companies are forced to shut down due to economic hardships and rising inflation.•2004 - The EU renews sanctions against Mugabe and his inner circle.•2005 - Mugabe's party wins parliamentary election, which the opposition say was rigged.•2006 - Zimbabwe's annual inflation rises above 1,000 percent in April. Redenominated notes are issued in August. Inflation rises monthly.

 

TIMELINE: Chronology of

Zimbabwe's economic crisis

2007 :Zimbabwe announces inflation slowed to an annualized 6,592.8 percent in August from 7,634.8 percent in July. The government credits price freeze for the drop.

2008 - Central bank introduces higher denomination banknotes. The notes, a 1,000,000 Zimbabwe dollar note ($33 at the official exchange rate but $0.33 on the black market) and Z$5,000,000 and Z$10,000,000 bills, will start circulating on Jan 18.

2009  - Government allows use of foreign currencies to try stem hyperinflation.

2010  - Prime Minister Morgan Tsvangirai urges the easing of targeted sanctions, saying the unity government's progress should be rewarded.

2011 - European Union eases sanctions on Zimbabwe by removing the names of 35 of President Mugabe's supporters from a list of people whose assets had been frozen.

2012  - European Union lifts sanctions on some prominent Zimbabweans, while retaining the travel restrictions and the freeze on the assets of President Mugabe.

2013 - Talks involving President Mugabe and Prime Minister Morgan Tsvangirai reach a deal over a new draft constitution.

2014 - Zimbabwe marks President Mugabe's 90th birthday after he returns from medical treatment in Singapore.

2015 - President Mugabe is chosen as chairman of the African Union for the year.Central Bank formally phases out the Zimbabwe dollar, formalising the multi-currency system intoduced to counter hyper-inflation.

CAUSES

DROUGHT

HIV/AIDS

LAND REFORMS

The economy of Zimbabwe shrank significantly after 2000,resulting in a desperate situation for the country.

Hyperinflation in Zimbabwe was a major problem from about 2003 to April 2009.

Zimbabwe faced 231 million percent peak hyperinflation in 2008.

ECONOMIC CONDITION

Recent years have seen widespread violations of human rights.

Zimbabwe entered a state of violent political crisis in the aftermath of the presidential elections held in two rounds.

State forces in Zimbabwe have committed acts of violence against thousands of civilians, targeting primarily political opponents and workers.

POLITICAL CONDITIONS

Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.

Hyperinflation

HOW TO OVERCOME HYPERINFLATION

SITUATION?

A situation where the citizens of a country officially or unofficially use a foreign country's currency as legal tender for conducting transactions

Greater stability in the value of the foreign currency over domestic currency

THIS month marks six years since zimbabwe adopted the multi-currency monetary system

To reduce its inflation

Dollarization

Gives up its right to influence its own monetary policy by adjusting the money supply

Reduced competitiveness of local products

Cost of living increased Stability to an economy in which

inflation levels had spiralled beyond sustainability.

Possible

solutions Dollarization Freezing govt expenditure

Increase taxes

Tourism Better land reforms

Currency