President Robert Mugabe of Zimbabwe has been defending his country’s economic record, saying the economy is not fragile at the ongoing World Economic Forum in Durban South Africa .
He maintained that Zimbabwe is one of the most highly developed countries in Africa, after South Africa”.
Backing up his case he cited the 90% literacy rates among other achievements.
“I don’t think of us as a fragile state from an economic point of view.
“Yes, we have our problems… but we have resources, perhaps more than the average country… and our agriculture is very viable and this year we will have a bumper harvest”.
In the UN Development Programme’s Human Development Index, Zimbabwe is ranked as low at 154th place in the world.
Neighbouring Botswana is 108th, South Africa is 119th and Algeria is 83rd.
About Zimbabwe’s economy
Zimbabwe’s economy is characterized by instability and volatility, both of which are hallmarks of excessive government interference and mismanagement.
Massive corruption and disastrous economic policies have plunged Zimbabwe into poverty. The government’s near bankruptcy has triggered large protests over unpaid civil service wages and a continuing economic crisis.
The financial system has suffered from repeated crises. The lingering effects of years of hyperinflation have crippled entrepreneurial activity, severely undermining macroeconomic stability.
The government has used the Reserve Bank of Zimbabwe to finance deficit spending and provide direct loans to state-owned enterprises. An inefficient judicial system and general lack of transparency severely exacerbate business costs and entrepreneurial risk.
Source: Africafeeds.com / Fred Dzakpata
