Wednesday, May 04, 2005

The World's First Capital City without a Council

Harare voters who spurned the advances of ZANU-PF in the March elections are set to be subjugated to the party they refuted. ZANU-PF is clandestinely planning to obliterate the capital city's council replacing it with several "strategic business units" which are meant to "streamline the costs of running the city. See this. There's no doubt about who will benefit both financially and politically from these structures.

Zimbabwe is set to become the first country in the world with a capital city without a city council.

After reports that Zimbabwe's largest milling company National Foods, has closed down some of it's milling plants and is only operating at 5% of capacity in the ones that are open , the government has announced it will treble it's buying price for maize ($2.2 million/metric tonne up from 750K), but then sell it to millers for a paltry $600,000/tonne.

How can a government presiding over the country's worst economic crisis afford this or perform such gravity defining antics you ask?

They do it by by doing the same thing they did in 1998 when they doled out millions to "war veterans" as "gratuity" for their role in liberating the country, or by employing the same economics that have ensured that rentals in Harare's epicenter are less than half the going market rates. Simply put, they just print the money to make up the difference. This, dear reader, is economics ZANU-PF style.

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