Crisis in Zimbabwe Essay

903 Words 4 Pages
A) A country that lost its access to the means of production was Zimbabwe. The means of production that was lost in this country was land and eventually raw materials that were being produced. Zimbabwe once exported food, but now requires massive food aid due to what happened under the presidents rule. Zimbabwe was once seen as Africa’s breadbasket. It was rich in raw materials as well as industrious farmland. Zimbabwe would grow all the food needed for its own people and had left over that they would then export. Agriculture was the mainstay of its economy. The farm sector employed thousands of workers. In addition to having a strong farm sector, Zimbabwe also had a refined manufacturing base and a strong banking division. The court …show more content…
In nearly all cases it turned out that the small farms were dry and the commercial farms were green and lavish. The reason there was a difference was because those who used commercial farms had incentives to keep them producing and I return were allowed to get funds for machinery and tools. In the small farms there were usually problems with overusing them and fighting over the rights since there were no property titles for those. Because of this, the president had to take action and in the end most of those small farms were seized and ended in the hands of his supporters and government officials. After the problem with the land reform the economy just kept going downhill. Primary industry started declining and many companies started to go out of business. The economy began to implode with increasing speed. Its economy was shrinking faster than any other in the entire world. Food shortages then went into effect and inflation was on the rise, the end result eventually being hyperinflation. Zimbabwe in return lost more than 99 percent of its real exchange value on its dollars with an inflation rate running at 500 percent. Due to the implosion of the economy financial investors fled thinking that their business might be seized next. Dozens of banks collapsed and those that did not refused to extend credit fearing that they would soon collapse. The commercial farmland lost about three fourths of its value because of the loss of

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