Hyperinflation Next Door in Zim

Even before the current economic crisis was reverberating around the world, the people of neighboring Zimbabwe were suffering terribly. One consequence of their national political and economic crisis is a tragic healthcare crisis. Zim’s cholera epidemic has taken between four and five thousand lives, and afflicted over 85,000 people. Today, heading out for the weekend, Zim’s newly installed Prime Minister Morgan Tsvangirai (prounounced “chang-ur-eye”) and his wife were in involved in a car accident. Mrs. Tsvangirai perished. Now, grieving, how will Mr. Tsvangirai be able to challenge eighty-five-year-old President Robert Mugabe, who has been in power for over three decades, and shows no signs of letting go?

Zim has been experiencing what economists calI hyperinflation. A recent BBC report crystallized the situation well. The good news: In the beginning of February Zimbabwean teachers got paid—for their work in January. They were each paid $30, 000,000,000,000 Zimbabwean, that's 30 trillion Zim bucks. Sounds like a nice windfall, right? End of good news – it was more like well, just wind. The teachers’ thirty trillion Zim bucks monthly pay was worth . . . $3 U.S.! There’s more. I say was worth because three days later, it dropped to $ 1 U.S.. Zim has since revalued its currency Many if not most Zimbabweans have switched to using more stable currencies, South African rand, U.S. $, and Euros. If they don't convert or spend Zim bucks, the little value it has evaporates, (like the German mark in WWII) almost in the time it takes them to make a decision while shopping. While visiting with friends Ted and Sue Wright in Lusaka recently Ted pulled out a banded wad of Zim bucks, like the stacks of cash you see in a bank. The denominations were twenty-fives and fifties—so to speak—billions that is, $25,000,000,000 and $50,000,000,000 Zim bills. How’s that for a financial meltdown? In the picture above my colleague Richard Chimfwembe is holding a $50,000,000,000 Zim bill. Zim bills have expiration dates printed on them. This one expired on Dec. 31, ’08, but according to Ted, they’re still accepted. Might make some interesting wallpaper; it’s probably cheaper than the real thing. I trust you would agree that the people of Zimbabwe need our prayers.