ZIMBABWE CRISIS 2015

GROUP-09
KANCHAN
BHAIYA-09

DARSHIKA
JAIN-24

SONAM
PATIL-

PRANIT
SHAH-53

RITU
BHANSHALI
-

SIDDHANT
JAIN-

KUSHANG
JAIN-

Landlocked country in southern Africa.

Home of the Victoria falls.
Amazing Wildlife.
The breadbasket of Africa.

Background about
Zimbabwe
In Numbers
(1st January 2012)

Putting things into

perspective

13 Million

About twice the size

of Dhaka.

6.21 Billion

46 times smaller than

the GDP of
Bangladesh

GDP per Capita

$500

Almost one third of

what each
Bangladeshi earns

Unemployment

95%

Highest in the world

Robert Mugabe

Head the first

government as prime
minister on 4 March
1980

Fact

Population

GDP

Current President

MAN BEHIND THE PROBLEMS

Current Situation of
Zimbabwe
Food shortages
Health
HIV/AIDS
Migration & Displacement
Land redistribution

TIMELINE: Chronology

of Zimbabwe's
economic crisis
2000:Mugabe's ruling ZANU-PF party wins parliamentary polls amid

charges of fraud and vote rigging by the opposition.

2001 - Zimbabwe suffers food shortages that government critics
blame on farm seizures, but Mugabe blames on drought.
2002 - Mugabe wins new six-year term in elections. Observers
condemn poll as flawed and unfair.
2003 - Hundreds of companies are forced to shut down due to
economic hardships and rising inflation.
2004 - The EU renews sanctions against Mugabe and his inner
circle.
2005 - Mugabe's party wins parliamentary election, which the
opposition say was rigged.
2006 - Zimbabwe's annual inflation rises above 1,000 percent in
April. Redenominated notes are issued in August. Inflation rises
monthly.

 2007 :Zimbabwe announces inflation slowed to an

annualized 6,592.8 percent in August from 7,634.8 percent

in July. The government credits price freeze for the drop.
2008 - Central bank introduces higher denomination
banknotes. The notes, a 1,000,000 Zimbabwe dollar note
($33 at the official exchange rate but $0.33 on the black
market) and Z$5,000,000 and Z$10,000,000 bills, will start
circulating on Jan 18.
2009 - Government allows use of foreign currencies to try
stem hyperinflation.
2010 - Prime Minister Morgan Tsvangirai urges the easing
of targeted sanctions, saying the unity government's
progress should be rewarded.
2011- European Union eases sanctions on Zimbabwe by
removing the names of 35 of President Mugabe's supporters
from a list of people whose assets had been frozen.

 2012 - European Union lifts sanctions on some

prominent Zimbabweans, while retaining the travel

restrictions and the freeze on the assets of President
Mugabe.
2013- Talks involving President Mugabe and Prime
Minister Morgan Tsvangirai reach a deal over a new draft
constitution.
2014 - Zimbabwe marks President Mugabe's 90th
birthday after he returns from medical treatment in
Singapore.
2015- President Mugabe is chosen as chairman of the
African Union for the year.Central Bank formally phases
out the Zimbabwe dollar, formalising the multi-currency
system intoduced to counter hyper-inflation.

CAUSES
DROUGHT
HIV/AIDS
LAND REFORMS

ECONOMIC CONDITION

The economy of Zimbabwe shrank

significantly after 2000,resulting in a
desperate situation for the country.
Hyperinflation in Zimbabwe was a major
problem from about 2003 to April 2009.
Zimbabwe faced 231 million percent peak
hyperinflation in 2008.

POLITICAL CONDITIONS
Recent years have seen widespread violations

of human rights.
Zimbabwe entered a state of violent political
crisis in the aftermath of the presidential
elections held in two rounds.
State forces in Zimbabwe have committed
acts of violence against thousands of civilians,
targeting primarily political opponents and
workers.

Hyperinflation
Hyperinflation is a situation
where the price increases are so
out of control that the concept
of inflation is meaningless.

HOW TO OVERCOME
HYPERINFLATION SITUATION?

Dollarizatio
A situation where then
citizens of a country
offi cially or unoffi cially use a foreign

country's currency as legal tender for

conducting transactions
Greater stability in the value of the foreign
currency over domestic currency
THIS month markssix years since zimbabwe
adopted the multi-currency monetary system
To reduce its inflation

Gives up its right to influence its

own monetary policy by adjusting
the money supply
Reduced competitiveness of local
products
Cost of living increased
Stability to an economy in which
inflation levels had spiralled beyond
sustainability.

Possible
solutions
Dollarization
Freezing govt
expenditure
Increase
taxes
Tourism
Better land
reforms

Currency