BBC Reality Check Team
Claim: Life in Zimbabwe is now worse than under former
President Robert Mugabe, according to Fadzayi Mahere of the opposition Movement
for Democratic Change (MDC).
Verdict: It's true that in recent months, the economic
situation has worsened. But there were periods during Mr Mugabe's long rule
when the economic indicators were much worse.
The opposition in Zimbabwe has called for protests over
conditions in the country, accusing the government of economic mismanagement.
Since 2017, Zimbabwe has been led by President Emmerson
Mnangagwa, following the overthrow of his long-serving predecessor Robert
Mugabe by the military.
We've taken a look at some key national economic indicators
as a measure of whether Zimbabweans are worse off today than they were before
Mr Mnangagwa took over.
The latest economic data suggests Zimbabwe's economy has
actually been shrinking over the past year as measured by gross domestic
product (GDP) per capita, the average economic output per person.
This might be felt by Zimbabweans as a squeeze on jobs and
wages as businesses struggle through difficult times.
But the projected figure for 2019 is only slightly lower
than for 2017, Mugabe's final year in office.
So although Zimbabweans may be feeling the effects of the
recent decline, it's not possible to argue from this data that the situation is
significantly worse today than under the previous administration.
However, another important measure of the overall health of
an economy is the level of investment by businesses.
This has fallen sharply since 2017. As a percentage of the
value of the economy, it was nearly three times higher than the projected
figure for 2019.
The government blames international sanctions, in place
since 2002, for damaging the economy.
These sanctions target top officials and state-owned
companies, and the US says they won't be removed until meaningful political
reforms take place.
When it comes to how ordinary Zimbabweans really feel about
the economic situation, it's price inflation that has more direct impact on
their daily lives than overall growth or investment data.
At the end of 2017 when Mr Mugabe was removed from office,
the annual rate of inflation - that's the rate at which prices rise - was
around 5%.
Inflation remained low until towards the end of 2018, but
then rose sharply through the first half of 2019, reaching an annualised rate
of 176% in June.
This is a measure of general consumer prices across the
economy. If this is narrowed down to just food prices, the picture
looks even bleaker.
The annual food inflation figure released in June 2019 was
measured at more than 250% according to the UN.
The UN's World Food Programme (WFP) has appealed for funds
for food aid, for what it calls the country's "worst-ever hunger
crisis".
It says people in Zimbabwe have been severely affected by
the impact of Cyclone Idai in March, droughts in some parts of the country and
what it called "economic stagnation".
The government has also reintroduced its own currency after
a decade of relying on the US dollar.
This prompted an outcry from many workers, who would prefer
to be paid in US dollars, and whose wages have shrunk in the past year because
of inflation.
Has Zimbabwe seen worse?
Despite the current gloomy economic environment, there were
periods under Mr Mugabe's years in power that were far worse.
In 2007-09, the country went through a period of extreme
hyperinflation that made the local currency worthless.
At one point in 2008, the annual inflation rate was over
500 billion percent according to the UN, and there was also high unemployment.
"In 2008, there was little food on the shelves. It was
much worse on the ground than it is now," says the BBC's Shingai Nyoka in
Harare.
There was widespread unrest and a government crackdown that
saw large-scale killings and arrests by security forces.
"Mr Mugabe inherited a stable functioning economy that
for the first 15 years of his rule he built on, creating a thriving black
middle class," says Ms Nyoka.
"But the last two decades of his rule ruined the
economy. In its two years in office, the current government is still trying to
resolve legacy issues from Mr Mugabe's rule."
What is the government saying?
Since the new government came into power it has undertaken
a number of austerity measures - cutting spending, reducing some public sector
wages and introducing new taxes - which it says are to get the economy back on
track.
It has also said it is "open for business" after
years of international isolation and high spending under Mr Mugabe.
It says the reforms are necessary to create an environment
favourable for investors to create jobs.
But Zimbabwean economist Godfrey Kanyenze says the current
government's austerity policies have "spawned chronic high inflation and
impoverished the majority of Zimbabweans".
0 comments:
Post a Comment