Communication in Economics - Essay Example

It is, hence, no surprise that, as of this writing, statistics showed that more than half of the total population of Zimbabwe is now living below poverty line. “According to the Confederation of Zimbabwe Industry, some 620 companies have closed shop since July 2000. The unemployment rate is at 80 percent and the official inflation rate has officially topped 782 percent, by far the highest in the world, while the International Monetary Fund puts the real rate at more than 900 percent” (Chigugu, 2006) The IMF has emphasized on the needs and urged the Zimbabwe government to implement certain policies.

These policies according to IMF should aim at “strong fiscal adjustment; cutting state expenditure; full liberalization of the exchange rate regime; adoption of a strong monetary anchor by reducing money supply; fundamental structural reform, including price deregulation and public enterprise reform; strengthening of property rights and halting invasions of commercial farmland; and improvements in governance.” By the year 2005, the International Monetary Fund has already rang the alarm bells about the economic state of Zimbabwe.

The interest rate was on a record of seventy percentages in year 2005 while the inflation was more than three hundred and fifty percentage. The IMF further underscored the fact that the country’s gross domestic product will likely shrink another seven percent this year while some economists predict that by years end inflation could reach 1,000%. (Franceschi, 2005) And so if these problems are left unchecked, the IMF predicted an economic collapse very soon. These highlighted how poor the condition of Zimbabwe’s economy has become.

Not a few literature has explored the case of Zimbabwe and its political and economic system as well as its future. For this paper, I start with the fact that Zimbabwe governmental policies in place are self-destructive in a way that repressive political and economic