Tuesday 20 March 2012

Rhodesian and Zimbabwean economies


When I grew up, very few people had any access to luxury goods.

There were economic sanctions, so national self-sufficiency was very important. Things like cars and parts were sometimes hard to get. We also had sanctions busting secret agents, so sometimes we got some of the missing items, but nothing was guaranteed. In the latter part of the 1970s, chocolate tasted pretty bad, since we had no cacao. Cheese was in short supply, and when a load was deposited at the supermarket, it was strictly one per customer. We kids used to grab an extra cheese and queue up separately from our parents in order to obtain more. Petrol was also restricted and the difficulties increased after Mozambique became independent in 1975, meaning that there were there were restrictions on goods coming from ports in that direction. Tobacco crops sometimes couldn’t be sold and were ploughed back into the land. The country developed a mixed-fuel base, which sometimes set light to your engines.

Then, around 1979, chocolate began tasting like chocolate. Petrol was still hard to obtain and there were long petrol queues, with people parking their cars in queues overnight. I imagine this was because South Africa remained under colonial rule and was now the outright enemy of the newly liberated “Marxist” Zimbabwe.

Then inflation started. Prices had been kept constant by the restricted nature of the economy and certain fiscal policies. Whereas before, you could buy a family sized packet of chips for twenty cents, now the prices were going up five cents every couple of months. Really fancy goods were still unavailable. Contemporary fashion was still unknown. Newly appointed government ministers started to drive around in the latest models of Mercedes. I saw one planted in a storm water ditch at the bottom of my road. Power goes to the head when it comes suddenly.

Zimbabwe today has open economic borders with all countries, but the government controls the lucrative resources such as the mines. The infrastructure — especially water and electricity — has fallen into disrepair. This is much more the case in the impoverished “high density” areas, where there may be only one water source shared by ten or twenty houses. In medium density areas, water and electricity supply are unpredictable and rationed. Class divisions have become more entrenched as per this system of unequal sharing of communal resources. These divisions are no longer largely racial, although it would be unusual for a white person to live in a high density suburb, as I did for several weeks in 2010. If you do stay there, there is no racial animosity, although neighbors may quietly theorize about your reasons for being there.

Owners in low density suburbs often have bores and electricity generators. Their properties are also protected by electrified wires or security personnel. So, security, at any rate, has become privatized. It used to be a function supplied by a militaristic state with a huge army.

To make money, it is common for everyday individuals travel over the borders to obtain rare items such as electronics goods, and bring them back to Zimbabwe to sell at a profit. The government has slapped a hefty import tax on new goods such as computers, but obviously it is still possible to get around this in some way. There are back routes into Zimbabwe and there is a high level of corruption.

There are tolls on the major country roads, which never used to be there. The police are generally looking for a bribe, as $150 US a month is not enough to live on. (They are genuinely gracious when they receive $5. There is no special effort to extort more from an individual.)

There is also the informal sector, where people try to obtain diamonds illegally. This is dangerous. On the lighter scale, people can also pick up hitch-hikers who pay a standard fare of $1-2 for a short distance and $4-$5 for a longer ride. (Longer distances would be for three or four hours).

People have an amazing sense of fairness in terms of operating on the basis of standardized expectations, an attitude of justice that even extends to how one relates to the informal economy of corrupt government officials.

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Cultural barriers to objectivity