Zimbabwe Expected To Collapse

By Jan Raath, The Times

Inflation is likely to bring Zimbabwe’s economy to a standstill within six months with the possible paralysis of President Mugabe’s Government and civil unrest, international aid agencies warned their staff yesterday.

The country’s plight is likely to force Mr Mugabe to introduce emergency rule, said a group representing 34 organisations, including the United Nations, the International Federation of the Red Cross and Oxfam.

The warning came as the country’s consumer watchdog reported that the cost of living for an average urban family had risen by 66 per cent last month. In April inflation stood at a record 3,700 per cent. The internal memorandum from the Heads of Agencies Contact Group is the first evidence that international organisations are taking steps to prepare for a collapse.

“The memorandum is talking about a situation where there is no functioning government or a total breakdown,” said an agency official, who asked not to be named. “It is saying it is inevitable, not just a possibility. Our head offices have to know. Not many people have experienced this kind of crisis.” The document says that inflation will continue to snowball. “Thus economic collapse is expected before the end of 2007,” it adds.

By that point the Zimbabwean currency will have become unusable (worthless) and shops and services will “substantially cease to function”.

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