26 June 2009

Zimbabwe Update

First off, we have a row between Mugabe and Tsvangerai over the Bank of Zimbabwe Governor, Gideon Gono.

This is a non-trivial row, because the spectacularly corrupt Gono was the architect of Zimbabwe's hyperinflation, and he did so in order to pay off the various ZANU-PF constituencies to support Mugabe.

It's gotten heated enough that the (ZANU-PF member) military and security chiefs have said that his removal would be unacceptable.

Members of the MDC have approached the Southern African Development Community asking for an intervention, but non seems forthcoming.

The regional association of governments is sticking with precedent, and being generally useless, so the MDC is moving toward changing the law chartering the Zimbabwean central bank so as to reduce Gono's authority.

Things are improving a bit though at least in economy, with inflation moderating, though the persecution of civil rights activists continues.

In mining, which will necessarily be a source of much needed foreign currency, you have the good and the bad

On the good side, you have Zimbabwe Zimbabwe moving to ban raw chromium ore exports, and insisting that it be smelted first, which will greatly increase the benefit to society, as there is 10x the profit post smelter. (as an aside, the US and EU have filed a case against against China for doing this at the WTO, because under neocolonialist WTO rules, poor countries are not supposed to develop industries based on their resources)

We also have some gold mines reopening.


On the down side, mines minister is still one of Mugabe's cronies, which means that he is still on the EU's sanction list, and was denied a visa to enter the UK, and all indications are that this was well justified, as civil rights violations at the mines seem to be pretty horrific.

Specifically it appears that the Zimbabwe army is using slave labor to operate diamond mines in the east of the country, as a way for Mugabe to continue to pay off the military for its support. (See also here)

We are starting to see some aid resuming to Zimbabwe, with Norway being among the first western nations to do so, though most nations are taking steps to ensure that the aid does not pass through government agencies, which are still compromised.

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