Zimbabwe, Pensions and Governance
Yesterday’s Times had an article on the deteriorating condition in Zimbabwe under Robert Mugabe. There are poorer countries in the world, but with GDP growth at -13.6% in 2003, -8.2% in 2004 and -4% in 2005, Zimbabwe seems a textbook example of how to reverse progress.
IN ONE hand Frank Wiggill holds his monthly pension statement and in the other a 500 gram packet of salt. It is the only thing in the supermarket that his pension will buy, unless he prefers to splash out on two eggs.
When Wiggill retired after 38 years as an engine driver on the Zimbabwean railways, he looked forward to enjoying his twilight years in comfort. Instead he and his wife Jeanette depend on monthly food parcels from well-wishers and handouts from their son in South Africa. The collapsing currency combined with the world’s highest inflation — estimated at more than 1,000% a year — has cut their pension to 13p a month.
“It’s embarrassing,” said Wiggill, 79. “I worked all my life and here I am living on food parcels of milk powder and toilet paper.” His monthly pension of Z$49,000 is less than the cost of a newspaper (Z$50,000) or a loaf of bread (Z$70,000). It would take him two months to buy a pint of milk (Z$89,000) and nine months to afford the cheapest pack of four toilet rolls (Z$440,000).
Read in full here.
In this (pdf) paper, Daniel Kaufmann of the World Bank comments on changes in the quality of governance across 209 countries between 1998 and 2004. Governance is defined by the World Bank as “the set of traditions and institutions by which authority in a country is exercised”. Zimbabwe is one of only 3 countries that have seen a significant worsening in a) the level of civilian voice and political accountability, b) regulatory quality, c) the rule of law and d) the control of corruption. It’s mismanagement on a gross scale with no sign of reversal.