Zimbabwe's public finance surplus!

[Mich the Tester]

BBC News - Zimbabwe says public account stood at $217 last week
Zimbabwe's Finance Minister Tendai Biti has said that the country only had $217 (£138) left in its public account last week after paying civil servants.

Well, I guess it's better than an overdraft of umpty gazillion like most of Europe.

[AtW]

"Mr Biti told the BBC he made the revelation in order to emphasise that the government was unable to finance elections, not that it was insolvent."

When Govt has got only enough money for a few rounds of beer left it is insolvent.

[Mich the Tester]

"Mr Biti told the BBC he made the revelation in order to emphasise that the government was unable to finance elections, not that it was insolvent."

When Govt has got only enough money for a few rounds of beer left it is insolvent.

Pissed

[Troll]

BBC News - Zimbabwe says public account stood at $217 last week
Zimbabwe's Finance Minister Tendai Biti has said that the country only had $217 (£138) left in its public account last week after paying civil servants.

Well, I guess it's better than an overdraft of umpty gazillion like most of Europe.

Remarkable -when did they resume paying their civil servants?

Zimbabwe’s government of national unity has improved the economic situation but the political climate remains harsh, with a rise in partisan violence, mostly by supporters of ZANU-PF (the Zimbabwe African National Union-Patriotic Front), against their partners in government, the Movement for Democratic Change (MDC). Many question the independence of institutions vital to free and fair elections, including the electoral commission and the judiciary and the security forces, seen as staunch ZANU-PF allies. Authorities use repressive laws to silence journalists, human rights defenders, civil society and political opposition.

more than 100,000 blacks were resettled on land which was previously owned by few whites. These new farmers were usually inexperienced or uninterested in farming, and could not maintain the intensive, industrialized farming of the previous owners. Short term gains were often made by selling the farms equipment. The loss of agricultural expertise also triggered a loss of agricultural financing and market confidence which made recovery almost impossible. A considerable amount of this land has however gone to local people who use it mainly for subsistence farming. Therefore production of staple food, such as maize has not suffered as much as typical export crops, such as tobacco or coffee.The previously large exports of tobacco, cotton, soya and horticultural produce have consequently reduced dramatically and the income derived from them lost to the national economy.

Government spending is 97.8% of GDP. It has partly been financed by printing money, which has led to hyperinflation. State enterprises are strongly subsidized, taxes and tariffs are high. State regulation is costly to companies, starting or closing a business is slow and costly.Labor market is highly regulated, hiring a worker is cumbersome, firing a worker is difficult and unemployment has risen to 94% (at the end of 2008; the figure was 80% in 2005).

[Mich the Tester]

Remarkable -when did they resume paying their civil servants?

I think you've fallen for Mugabe's trap in thinking Zimbabwe's issues are primarily to do with black and white. Partly, they are, but only indirectly; they're really more to do with a largely urban, but partly rural and land owning, educated (black AND white) middle class who tend to vote MDC and a large group of illiterate bumpkins and party cronies whose lives are funded by Zanu-PF. Mugabe is hated by almost anyone who can read except those he bribes, which may explain why he doesn't like funding schools in the countryside and absolutely hates farmers who provide schooling for their workers' children. Mugabe didn't just steal land from white farmers; he stole businesses from black people as well, and many of those people are now to be found in Botswana and Namibia, again running small and medium sized businesses because that's all they have ever done to earn a living.

But never mind the complicated bits of African politics, let's just keep it simple shall we?