Noteworthy...

Hello (!), and thanks very much for being so patient while I transitioned back to an Oxonian existence. I'm nearly all settled and on something resembling a routine, which is quite exciting. Research productivity is still a matter to be tackled, but I'm getting there... slowly, slowly.

News while I was away? - Lots, really! Below is a little collection of stories which caught my attention when I finally sat down to catch-up on the world's goings-on. These are but several among many, to be sure:

• Owen Barder on when innovative finance is good for development - and when it isn't
• Despite China's rapid economic rebound in recent months, many Chinese companies are still operating at a lower level of activity than they had achieved in the boom years
• American chicken feet may be the US's saving grace in its recent (and ongoing) trade war with China
• Nestle is in a bit of a bind as it has been discovered that the company purchases milk from a Zimbabwean farm seized from its white owners and now owned by Mugabe's wife. Now that's a "whoops" moment if I ever saw one...
• The 24 September edition of the Economist had a wonderful special report on the positive potential of mobile money in Africa
• Writing in the European Voice, Jonathan Holslag and Gustaaf Geeraerts argue that Europe should expect to see a more assertive China in the coming years
• A rather biting review of Paul Collier's book, Wars, Guns & Votes written by Dr. Mutuma Ruteere, Research Fellow at the University of Cape Town. The review is written from an anti-imperialist, anti-interventionist tone; certainly worth your time

Chinese agricultural techniques and African development: a hope for better things to come

China has been having a bit of a rough go here on China in Africa this week. First it's found to be de-industrializing other developing nations, then peddling fake drugs in Africa, its media outlets producing questionable maps, and today victimizing African labourers. Not at all a very rosy picture! There is good news, however: a report commissioned by the African Agricultural Technology Foundation (AATF) and prepared by my colleagues at the Centre for Chinese Studies at the University of Stellenbosch, finds that the very technologies employed in China's agricultural boom might be appropriate - and indeed highly beneficial - in the African context.

The report - "The Relevance of Chinese Agricultural Technologies for African Smallholder Farmers: Agricultural Technology Research in China" - finds that of particular benefit are water-saving technologies and soil-related techniques such as tilage and planting methods. Evidently, small-scale African farmers face similar challenges as do their Chinese counterparts, and there is much in the way of technology and knowledge exchange that might benefit the former. According to the report, Chinese experts are especially focused on seed and rice technologies, particularly in Benin, Cameroon, Congo, Ethiopia, Liberia, Mozambique, Rwanda, South Africa, Sudan, Tanzania, Togo, Uganda, Zambia and Zimbabwe. Rapid advances in seed technology and new plant varieties have been a major factor in China's crop production increases, and it is believed that similar advancements may facilitate an agricultural boom across Africa.

In Mozambique, a 52 hectare agricultural demonstration centre is planned west of Maputo, at Boane. According to the report, crops will be planted this year to test whether the Mozambican climate is suited for various varieties of seeds, including maize, rice, vegetables and fruit. In Kampala, Uganda, Chinese contractors are building an aquaculture demonstration centre. The centre is envisaged to generate knowledge for fish farmers, fishers and researchers in the country.

The agricultural sector employs approximately 65% of Africa's population, and is the largest private sector on the continent. Poor agricultural planning, weak land tenure policies, and a low capacity to adapt to changing circumstances and markets have, however, generally hindered the sector from becoming a productive, profitable business. While the Chinese are incapable of ameliorating all these troubles, they may do well to provide the relevant technologies to farmers and place Africa's agricultural sector back on track to success. Fingers crossed.

"Among the worst employers everywhere"

Via Global Dispatch's Erin Conway-Smith I'm reminded of a report I've been meaning to link to for some time, but have continuously forgotten to do so - apologies! In May, the African Labour Research Network released a great 400+ page report on the labour conditions maintained by Chinese-operated firms in Africa. The report - "Chinese Investments in Africa: A Labour Perspective" - focuses especially on the cases of Angola, Botswana, Ghana, Malawi, Namibia, Nigeria, South Africa, Zambia and Zimbabwe, among the nations where the Chinese presence is most pronounced, and with which trade is particularly high.

Unfortunately for the Chinese, the findings are not at all favorable towards them. Quite generally, the report finds:

Chinese employers tend to be amongst the lowest paying in Africa when compared with other companies in the same sector. In Zambia, for example, the Chinese copper mine paid its workers 30% less than other copper mines in the country. In general, Chinese companies do not grant African workers any meaningful benefits and in some instances ignore even those that are prescribed by law. Wages above the national average were only found at those Chinese companies with a strong trade union presence. Chinese staff members enjoy significantly higher wages and more benefits than their African counterparts.

Collective bargaining hardly takes place in Chinese companies. They resort to union bashing strategies to discourage their workers from joining a trade union. In many instances, Chinese businesses were supported by host governments who defended Chinese investments against the demands of labour. Trade unions see the practices of Chinese companies as a threat to the limited social protection that unions have achieved over the years through collective bargaining.

In Namibia, for instance, some workers are paid $0.55 an hour by a Chinese company that is building the new Works and Transport Ministry headquarters - about half the legal minimum wage of $1.10 per hour for entry-level construction workers. In many cases workers don't wear safety helmets, as they are often required to pay for their own safety equipment - an investment they can ill afford. At a construction company in Malawi, too, workers had to mix cement with their bare hands. Many labour for 12 hours a day, 7 days a week. The general work day in much of Africa is 8 hours.

Of course it's difficult to expect high standards of working conditions in Chinese firms in Africa when Chinese firms in China don't fare any better. As I noted nearly a year ago, it's quite difficult to expect Chinese employers to improve labour conditions for foreign nationals working in their firms, when they have yet to do so for their own compatriots. For African states, the solution lies in legally regulating working conditions. But as the South African case demonstrates, where in place even such edicts are being circumvented. Thus while Africa stands to benefit from increased Chinese investment as such, it similarly stands to lose if such conditions continue. Change must occur, the lingering question is how.

On China as Africa's biggest arms dealer

I'm currently working on a paper examining Sino-Zambian relations, focusing especially on Chinese activity in Zambia's mining sector. I've been sitting on this project for quite some time, and finally managed to overcome what had been a most serious case of writer's block with the help of a lovely glass of Bandol (Tempier). Ok, fine, two glasses. In any event, while doing a bit of extra desk research, I happened upon an interesting piece in the recent edition of the Jamestown Foundation's China Brief. Author Richard Bitzinger writes:

China is now, on average, the world’s fifth largest arms exporter, after the traditional leading suppliers: the United States, Russia, France, and the United Kingdom. In fact, in 2007 it was fourth in terms of global arms transfer agreements, ahead of France, Germany and Spain.

Nearly all of China’s arms transfers are to developing countries, and in this arena the Chinese defense industry is emerging as a formidable competitor. In fact, China ranked third in terms of arms deliveries to the developing world in 2007. China's largest markets are in Asia, the Middle East, and particularly Africa. In fact, during the period 2004-2007, China was the single largest seller of arms to Africa; and its major customers include Pakistan, Egypt, Bangladesh, Iran, Zimbabwe, and Zambia.

Leading Chinese weapons exports (to Africa) include:

• The K-8 trainer jet: China has exported nearly 250 of these lightweight trainer/attack jets since 2000, according to the Stockholm International Peace Research Institute (SIPRI) database on arms transfers. Its biggest client has been Egypt, which bought 120 K-8s, most of which were assembled locally from kits, between 2001 and 2008. Other customers include Ghana, Pakistan, Sri Lanka, Sudan, Zambia, and Zimbabwe, while Venezuela is in negotiations to purchase up to 24 K-8s.
• The F-7MG fighter jet: This aircraft is the export version of the People's Liberation Army (PLA) Air Force’s F-7E, itself an upgraded adaptation of the MiG-21. The F-7MG features a larger wing and, reportedly, a British radar. China has sold more than a hundred of these fighters to Bangladesh, Namibia, Nigeria, Pakistan, and Sri Lanka, according the SIPRI Arms Transfers database, since the mid-1990s.
• The WZ-551 armored personnel carrier: Although not a particularly high-tech system, the WZ-551 is notable for being sold widely around the world, including countries like Argentina, Gabon, Kenya, Kuwait, Nepal, Oman, Sri Lanka, Sudan, and Tanzania

It remains difficult to gauge how successful China will be in the global arms marketplace, with countries like the U.S. and Russia out-exporting the country by rather wide margins (in 2007, for example, Russia exported $4.6 billion worth of arms - four times as much as China. Even Germany out-exported China by 60%). Yet China's foothold in the African marketplace appears to be quite favorable. In Zambia, for instance, China's North Industries Corp. (NORINCO) is allegedly in talks to upgrade Zambia's T-59 tanks engines, armor and fire control systems. The Nigerian air force has been eyeing China's K-8 trainer aircraft (Nigeria imported Chinese J-7 fighters in 2006). Zimbabwe is equipped with Chinese K-8 trainers and J-7 fighters, and in early 2009 was negotiating the purchase of one squadron of FC-1 fighters from. Chinese arms now equip Angola, South Africa, Sudan, Algeria, Egypt, Kenya... the list goes on and on.

Chinese arms deals appear to be part and parcel of the "oil-for-infrastructure" deals China continues to strike across the continent. In Angola, for instance, arms are sold in exchange for the country's oil. In Zambia, copper is the currency of choice. While some argue that Chinese arms sales to Africa will drop once China acquires a satisfactory supply of natural resources, such claims are highly dubious. What constitutes a "satisfactory supply" for a country with massive energy demands? What's more, it's rather doubtful that China will be so foolish as to bypass a booming export market. If nothing else, the Chinese are exceptionally savvy businessmen, and arms sales to Africa is a brilliant business opportunity. While China may not be supplanting or joining the U.S. and European states as a large supplier of sophisticated arms on a global scale anytime soon, they have seemingly already done so - and continue to do so - in Africa.

Great expectations

Regarding President Obama's upcoming trip to Ghana, G. Pascal Gregory of Africa Works writes the following in Monday's Globe & Mail:

Scholars speak of “the empire striking back,” referring to former colonized peoples, such as immigrants from Africa and India, settling in Europe and North America and then challenging norms of race and identity. In his first official trip to Africa, U.S. President Barack Obama is striking back in a novel way. His visit to Ghana highlights the desirability of prominent people from the diaspora making a positive contribution to African affairs.

But Mr. Obama's visit, while heavy on symbolism, reveals the limits of his power. Burdened by economic problems in America and wars in Iraq and Afghanistan, he can't act boldly in Africa or make big promises.

There is certainly no denying the importance of Obama's trip to Africa... errr Ghana... but I am struggling to discover the novelty of the visit. Arguably the trip would have carried much more symbolism had he been 'returning' to Kenya, the birthplace of his father. As Kenya is the most corrupt state in east Africa, the President's decision to visit Ghana instead is being justified on the grounds that by his visit he is hoping to "lift up successful models of democracy" of which Ghana is surely one (and Kenya quite obviously not). If this truly is the objective, however, then he presumably should not have extended aid to Zimbabwe or made nice in Saudi Arabia or buddied up to Chavez, etc. etc. If one is keen to promote models of democracy, one would hope that this would apply on a global scale and not just in select regions.

I further hesitate to attach much significance to Obama's upcoming 'Africa' visit because a) he is in fact going only to one country which quite limits whatever impact he might have, even more so in light of the fact that he is not giving a speech as he did in Egypt when addressing the Islamic people. One would think that he would desire to address the people of Africa, if for no other reason to pay tribute to his roots. Moreover (point (b) as it were) as Gregory aptly notes, Obama cannot act boldly in Africa or make any big promises, though to be quite honest I haven't seen any signs signaling his intention to do so anyway.

While there certainly is much excitement surrounding the President's upcoming visit, much of it seems to stem from the symbolism surrounding the trip - a man born to a Kenyan father, elevated to the highest office in America, returning to his native continent. There is certainly much to be celebrated in this tale, but I fear that Obama's visit will be little more than that: another chapter in the history of a man. All the while, great expectations will be met with great disappointment.

Update: I stand corrected, President Obama will deliver a speech in Ghana, according to the White House blog. The speech is set to air at 6am EST on Saturday, 11 July for all of you early Americans risers (and at a much more reasonable hour for those in Europe and elsewhere!). The President's interview with allAfrica.com likely provides some insights into what we might expect from him. I very much look forward to learning what he has to say.

A new take on the bottom (three) billion

Three billion individuals. That's the approximate number of people that would be scrapped if we were to eliminate the bottom 5% global GDP contributors, the vast majority of which are found in either Africa or Southeast Asia. 81 countries comprise this bottom 5%. Together they represent half of the 192 UN member states and nearly 43% of the world population.

What would the world look like without them? Via Strange Maps we are offered a glimpse:

In reverse order of magnitude the 81 countries are:

Zimbabwe, Burundi, DR Congo, Liberia, Guinea-Bissau, Eritrea, Malawi, Ethiopia, Sierra Leone, Niger, Afghanistan, Togo, Guinea, Uganda, Madagascar, the Central African Republic, Nepal, Myanmar (Burma), Rwanda, Mozambique, East Timor, the Gambia, Bangladesh, Tanzania, Burkina Faso, Mali, Lesotho, Ghana, Haiti, Tajikistan, the Comoros, Cambodia, Laos, Benin, Kenya, Chad, the Solomon Islands, Kyrgyzstan, India, Nicaragua, Uzbekistan, Vietnam, Mauritania, Pakistan, Senegal, Sao Tome and Principe, Ivory Coast, Zambia, the Yemen, Cameroon, Djibouti, Papua New Guinea, Kiribati, Nigeria, Guyana, the Sudan, Bolivia, Moldova, Honduras, the Philippines, Sri Lanka, Mongolia, Bhutan, Egypt, Vanuatu, Tonga, Paraguay, Morocco, Syria, Swaziland, Samoa, Guatemala, Georgia, the Congo, Iraq, Armenia, Jordan, Cape Verde, the Maldives, Fiji and Namibia.

It is equally curious to note which countries are not included among the bottom 5%. Any surprises?

China extends $950 million loan to Zimbabwe

Well, the post title says it all. Not to be outdone by recent American and U.K. offers of foreign aid, China has today agreed to a huge loan for Zimbabwe. The figure is nearly double what Prime Minister Tsvangirai received on his visits to the US and Europe earlier this month, and is meant to help the country revive its economy.

China has also promised increased investments in Zimbabwe, with more companies moving in to set up shop. While the obvious concerns over propping up rogue regimes persist, few appear interested in articulating them. What's more, where before Western nations were lambasting China for its assistance to questionable regimes, they now appear to be following suit (to an extent, mind you). It would seem that China is perhaps reshaping the international aid architecture after all.

Aid for Zimbabwe?

First it was the U.S., with its pledge of $73 million, and today it's the U.K. seemingly following suit with an additional $8 million (£5m), bringing total U.K. aid to Zimbabwe to $98 million (£60m) for this year alone. Now don't get me wrong, I am very much a proponent of assisting countries in need, but I question whether Zimbabwe has reformed itself to such an extent as to warrant such sizable aid packages. Surely the power-sharing government is a step in the right direction, but in my view not enough to merit such generous aid flows. At least not yet.

Indeed, I find myself agreeing with the Guardian's Tom Porteous who aptly observes:

There is much talk of reform in Zimbabwe but, as yet, no concrete action. The process of political change may have started but it is not irreversible. As long as Mugabe's nexus of repression and corruption remains in place, no amount of development assistance will help solve Zimbabwe's huge economic problems. And any economic aid to Harare from the UK or other donors will help to feed the crocodiles, just as surely as the blood-soaked profits of the Marange diamond mines.

Noteworthy….

The trouble with resuming aid to Zimbabwe

Tax deductible cycling: soon coming to an American city near you

Full-text of Timothy Geithner's speech at Peking University, which was seemingly well received by all in attendance

Gitmo: the video game (really? really?!)

For anyone wishing to brush up on their readings on Africa and development, this list should keep you perfectly busy for the next little while...

Noteworthy….

Tsvangirai on what it's like to share power with Mugabe, from Foreign Policy

Keep your friends close and... export your enemies? Zvika Krieger on the newly appointed U.S. Ambassador to China, Jon Hunstman Jr., and the fate of the GOP, from The New Republic

Rwanda's national English paper, The New Times, slams Human Rights Watch (and Kenneth Roth specifically) for their "insensitivity" towards the people of Rwanda... and general meddling (the HRW piece in question can be found here)

A brilliant and fascinating piece in today's Guardian on the evolving nature of the Chinese Communist Party and changing face of modern-day China

Among the very few times I hope the media is lying...

Via World Politics Review:

Zimbabwe's national unity government faces imminent collapse, due to its failure to get critical financial aid from the international community. Experts have now warned that the government might soon fail to pay its workers, with the potential for serious civil unrest as a result.

Horrible news if indeed true, no less so given that the power-sharing arrangement came to fruition a mere two months ago. I sincerely hoped that I would have been proven wrong in my initial skepticism. ::sigh::

Noteworthy….

There is so much that I want to say today, but alas I woke up running, as it were, and am fantastically behind in all that I'm meant to accomplish. Nevertheless, I do want to bring several things to your attention:

China today released a Human Rights Plan, a lengthy document promising to Chinese citizens a myriad of civil liberties they have thus far been denied. The full text of the plan (in English) may be found here.

The U.S. is considering attacking Somali pirates' land bases. I'm not quite sure the U.S. knows what it's getting itself into should this go ahead. A horrible idea, if you ask me (more on this in upcoming posts!)

Arguably one of the better summaries of all that is right, and all that is wrong, with Dambisa Moyo's controversial book, Dead Aid.

Money as art: billboards, flyers and posters made from worthless Zimbabwean dollars (you can view the images here)

One China, indeed

It really is amazing, isn't it: you step away for a few days and the world seemingly shifts beneath you. Having returned from what was a beautiful wedding in Nashville, I sat down this morning for my daily perusal of the news to discover that the Chinese are running a cyber spying ring (this is admittedly not at all surprising); Jeffrey Herbst and Greg Mills are arguing that the DRC does not exist; having refused the entry of the Dalai Lama, South Africa is now awarding Fidel Castro the country's highest honor; El Salvador is switching its diplomatic ties from Taiwan to China; the United States is becoming the new China; and, as if such news wasn't sufficiently overwhelming, it would appear that things are looking up in Zimbabwe. My goodness!

There's a unifying theme underlying at least two of these stories, which is worth teasing out in greater detail. With China now prominent on the global stage, attention tends to focus primarily on its economic and military activities (a very Western paradigm through which to examine international relations), often failing to account for the continued centrality of the "One China" policy in Beijing's dealings with the world. The recent happenings in El Salvador and South Africa are cases in point. Writing on South Africa's decision, the CS Monitor's Scott Baldauf notes:

A nation that freed itself from an apartheid government, South Africa would seem to have much in common with leading liberation figures like the Dalai Lama, who speaks for about 5.4 million Tibetans, who live under Chinese rule.

But as a nation that depends heavily on Chinese markets for buying its rich natural resources, South Africa has given the appearance of having chosen commerce over principle. It's a decision that could cost South Africa its moral voice on the global stage.

Todd Moss, quoting Nelson Mandela's grandson, organizer of the peace conference which was to host the Dalai Lama, observes:

This rejection by the government, to not issue a visa, is really tainting our efforts at democracy. It’s a sad day for South Africa. It’s a sad day for Africa…Where are we heading in the future?

Straight into the open arms of the Chinese, I would argue. Indeed, they must be quite pleased with themselves in Beijing, what with a growing number of countries wrapped around their finger - in Africa and beyond. While many countries are quick to pledge their allegiance to the Chinese for purely economic purposes, in some cases the reasoning is rooted in greater historical motivations, as appears to be the case in El Salvador:

The FMLN has never forgotten that ARENA founder Roberto D'Aubuisson, who organized and led the death squads which tortured and killed thousands of civilians and who directly ordered the assassination of Archbishop of San Salvador Monsignor Oscar Romero on March 24, 1980 that sparked the civil war, was trained in "police techniques" in Taiwan.

Moreover, unlike Nicaragua, Guatemala or Paraguay, Taiwan has been unable to develop solid political dialogue with the FMLN even under DPP President Chen Shui-bian.

Dual recognition appears to be out of the question for El Salvador, handing another diplomatic win (of sorts) to the Chinese. Indeed, it's important to recall that for the leaders in Beijing, national unity is of utmost importance, second only to economic growth. And for developing countries struggling to sustain their growth rates in the face of an ongoing economic crisis, acknowledging Chinese national integrity is a small price to pay for the goods handed in return. While scholars and policymakers alike sometimes tend to bypass the centrality of the "One China" principle, it remains a central tenet of Chinese foreign policy, not to be overlooked. 

As for South Africa awarding Castro the Order of Companions of O.R. Tambo in Gold award... your guess is as good as mine.

Quite possibly the worst job. Ever.

Overseeing the tumultuous American economy is one thing, but serving alongside Mugabe? That definitely wins first prize in the "most undesirable job" category.

Yet Morgan Tsvangirai, Zimbabwe's opposition leader, took the plunge today as he was sworn in as prime minister in a unity government with Mugabe. Not only will he now have the...ummm pleasure?... of ... cooperating? (apologies, I appear to be at a loss for words)... with Mugabe, but is also handed the responsibility of dealing with an economy in ruins, 90% unemployment, and a cholera epidemic which has killed close to 4,000 people. Sounds glamorous, doesn't it?

Now there are some who are optimistic about this newfound partnership, arguing that the power-sharing deal may be the first step in solving the Zimbabwe crisis (or crises, as the case may be). Yet others (myself included) fear that this may in the long-term only discredit Tsvangirai and his party, the Movement for Democratic Change (MDC), and do little to engender genuine reform. After all, under the agreement Mugabe retains control of the security and intelligence forces, which have done so well to keep him in power. 

Mmmmm... another fantastic political science experiment in the making.

Noteworthy….

Oh good, someone told them (see post on Obama, Geithner and China for reference). Clinton signals broader focus on Beijing, from the FT.

Obama leads U.S. drive to topple Mugabe, from The Times.

Let developing nations rule. Dani Rodrik on the opportunities for developing nations to project their interests in multilateral institutions and gain influence in shaping economic globalization, even as the global financial crisis rages on, from VoxEU.

And now for something completely different: Refugee Run (!!??) at Davos. [HT: Bill Easterly]

Interview with the central banker of Zimbabwe

Newsweek has a most interesting interview with Gideon Gono, heralded as both an incompetent fool and a tragic hero, who has been at the center of Zimbabwe's economic decline since his appointment as governor of the country's Reserve Bank in 2003. 

According to Gono, 2009 is going to be a good year for Zimbabwe (mmm yes, I think printing off trillion dollar notes is a great start, too) and the cholera is under control. Huh. I guess we have it all wrong:

Now the global economy is also going through a credit crunch. What do you make of that? 
I sit back and see the world today crying over the recent credit crunch, becoming hysterical about something which has not even lasted for a year, and I have been living with it for 10 years. My country has had to go for the past decade without credit.

Your critics blame your monetary policies for Zimbabwe's economic problems. I've been condemned by traditional economists who said that printing money is responsible for inflation. Out of the necessity to exist, to ensure my people survive, I had to find myself printing money. I found myself doing extraordinary things that aren't in the textbooks. Then the IMF asked the U.S. to please print money. I began to see the whole world now in a mode of practicing what they have been saying I should not. I decided that God had been on my side and had come to vindicate me.

[HT: Marginal Revolution]

Noteworthy….

Lessons of Zimbabwe, from the London Review of Books

More on Obama's Africa policy, from U.S. News

What's up with the LRA, Anyway?, from Wronging Rights

Best African books of the century [HT: Chris Blattman]

Zimbabwe's $100 trillion note(s)

Zimbabwe's hyperinflation has become so extreme that the treasury is rolling out 10, 20, 50 and 100 trillion dollar notes. 100 Zimbabwean dollars are currently worth US$30. Now, quick! Go spend it before it's too late. That is, if there's anything to purchase with them...

However, the dollarisation of the economy means that few products are available in the local currency [...] Some shops are licensed to sells goods in foreign currency but everyone from vegetable sellers to mobile phone service providers peg their prices to the US dollar.

Most groceries are brought in by Zimbabweans from neighbouring South Africa, Botswana or Zambia, further driving up prices. There is more than 80% unemployment in the country and those with jobs find their salary is worthless unless they are paid in foreign currency

Letter from Zimbabwe

An incredible communique posted by Shanta at the Africa Can ... End Poverty blog: 

I received this missive from a friend:

 

December 11, 2008

Harare, 1.00am

 

It is just after midnight in Harare. I have just returned from a midnight tour of the ATMs in Harare with a cousin. There are queues of people still waiting to get their weekly cash withdrawal limit of $100,000,000,000 (US$2.50). I saw the queues this morning when I went for my first meeting at 7.45am. I did not know then that I would be seeing them throughout the day. Most of the ATMs had run out of money. Rather than go home, people saved their precious place in the lines by lying down where they stood and taking a nap. Covering themselves with sacks, newspapers and whatever warming clothing they had. Those ATMs that were still paying out cash had queues of policemen and soldiers. I dared not pull out my camera then. When I did pull out my camera, it was of people too tired to care. Needless to say, picture quality from a moving car using a micro camera is not the best. This is not a normal interpretation of 24-hour banking; seven days a week.

 

Three hours earlier, I had gone to one of the cholera infected areas where my aunt lives. I had not intended to stay long. It is a way out of town and I did not want her worrying about my safety getting back into the city. There was a power outage from 6 p.m. and it had taken us two hours to find a house I last visited 20 years ago as a boy. But I did ask how she was coping in Harare; and to her nephew she poured her heart out. No clean water for weeks on end, no food in the shops and constant power cuts. She drives an hour and half across the township in search of clean drinking water, which she brings back in plastic containers. When the city council water does run through the taps in the house, the water is discolored with sewer water. The shops in the neighborhood are empty of basic necessities including mealie meal. Her husband now lives at their farm in another town so that he can plant, guard and harvest the maize that they will live on next year. There are groceries in some shops in the city, but they are sold in US$ and priced beyond her means. I am glad I brought her a suitcase of groceries. Groceries that, 20 years ago, my parents once drove from Lusaka to Harare to buy when Zambia was going through similar madness in the 1980s.

 

December 12, 2008

 

Today the Reserve Bank increased the cash withdrawal limit from $100,000,000 to $200,000,000 (US$4). It also introduced two higher-denomination notes, $200,000,000 and $500,000,000. As expected there was a mad rush to withdraw and spend the cash before it loses value. It is widely expected that retailers will increase their prices in line with the higher withdrawal limits. There were long (and I mean l…l…o…o…n…n…g…g) queues at every single working ATM. Offices were abandoned. I took pictures of the lines outside Barclays bank by walking to the first floor offices of government labor department. In a large pool office with at least 20 desks there was a lone clerk who looked up at me for all of two seconds. As I walked across the room to the window facing the bank, the files lay unattended on people’s desks…probably untouched for weeks. With civil service wages eroded by hyperinflation, people necessarily spend more time in the parallel economy trying to make ends meet. Interestingly, there are no runs on banks. The value of the withdrawals is so meaningless that the banks will be able to meet depositor demands with ease.

How much longer until the system bottoms under entirely, I wonder? 

Noteworthy….

Zimbabwe: from political crisis to cholera epidemic (from The Guardian)

Repairing the Past: Compensation for Victims of Human Rights Violations (Introductory chapter from Pablo de Grieff's recent book, The Handbook of Reparations)

Gates on foreign aid, education (from the WSJ)

How does geographic distance affect credit market access in Niger? (World Bank Policy Research Working Paper)