Zimbabwe crisis to worsen

Zimbabwe crisis to worsen - analysts

• Inflation shoots up, again

• Murerwa wants end to price controls

• Zim inflation surges by 90 percent

• Murerwa slashes ministerial budgets

• Top businessman Naran dies

• SA approves US$1bn credit line for Zim

• RBZ devalues Zim dollar by 40 percent

• Zimbabwe faces economic meltdown

• Gono's economic plan crumbles as inflation shoots up

• Patrick Mlambo: A 100 reasons why Gono should resign

• Gono wants white farmers back

• Central back chief admits failure

• Gono revises inflation target 100 percent upwards

• Gono's 'sleepless nights' over inflation

• Gono fighting a losing battle

• Gono, the Zimbabwean Napoleon

• Patrick Mlambo: The small minds in charge of our economy

• Chido Makunike: Overcoming the 'Messiah Complex'

• Zimbabwe dollar depreciates by 4 percent

• Inflation accelerates once again

• Gono predicts inflation to fall to 20%

• Zim fools no-one with 9% unemployment claim

• Zim claims on lowered inflation unconvincing

• House prices bite Zimbabwe's poor

• Reserve Bannk cautions against paying ex-political prisoners

• $200bln windfall for ex-political prisoners

• Zimbabwe's inflation seen dipping to 160%

By Cris Chinaka

ZIMBABWE'S crisis is likely to worsen in the coming months if President Robert Mugabe holds out against mediation efforts because only dialogue can help the country get vital economic assistance, critics say.

Mugabe, 81 and in power for 25 years, is accused by his critics of wrecking the southern African state by rigging major elections in the last five years and pursing controversial policies which have left him branded a dictator.

Mugabe says Zimbabwe has been targeted by foreign opponents led by former colonial ruler Britain for his nationalistic policies and says that most of Africa is firmly on his side in what he describes as an ongoing struggle against imperialism.

Analysts said the economic crisis, dramatised in severe shortages of food, fuel and rising inflation and unemployment, is set to worsen over Mugabe's hardline politics.

These include his recent rejection of offers by the African Union chairman, Nigerian president Olusegun Obasanjo, to name former Mozambican leader Joachim Chissano as mediator in talks with the main opposition.

"Mugabe's position on political talks with the (opposition) MDC, his attitude towards a loan offer from South Africa, his belligerant speeches on the diplomatic stage, his handling of food shortages and his adoption of controversial laws has compounded Zimbabwe's problems," said human rights lawyer Jacob Mafume.

"We need international help to solve a lot of our problems but we are not going to get that necessary help when Mugabe goes around telling the world we don't need any reforms or any help except on his terms," he said.

The United Nations said on Monday it would send a top aid official to Harare to try to smooth differences with the government over a stalled $30 million humanitarian relief programme it offered after the government demolished thousands of shacks and "illegal" houses in urban areas early this year.

"It is difficult to see how the situation is going to get better, politically and economically, until we have made peace with the world," said leading economic commentator Erich Bloch.

Mugabe's ZANU-PF party last month used its two-thirds parliamentary majority to approve constitutional changes allowing the government to effectively nationalise formerly white-owned farms and to impose travel bans on Zimbabweans the government regards as hostile.

While Zimbabwe faced possible expulsion from the IMF over debt repayment arrears, Mugabe stalled talks with South Africa on a loan offer apparently over political conditions, eventually scrounging at home for a surprise $120 million payment to the fund to ease pressure on his government.

And in a sign that he is not backing down from confrontation, Mugabe lashed out the U.S. and Britain at the United Nations summit last week, accusing them of bullying and creating problems for many countries, including Zimbabwe.

Mugabe denies he has ruined one of Africa's most promising economies, saying Zimbabwe is a victim of economic sanctions imposed by key Western donors at the behest of Britain following his seizures of white-owned farms for redistribution to blacks.

Thousands of businesses have closed over the last six years and unemployment has jumped from over 45 percent in 1995 to over 70 percent while inflation has soared to triple digits, making it one of the highest in the world.

The veteran Zimbabwean leader also rejects accusations that he has rigged three presidential and parliamentary elections in the last five years to retain power - Reuters
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