The Worst Economy to Ever Exist: Zimbabwe

Summary

In 2003, Zimbabwe's economy was on the brink of collapse, with a desperate populace resorting to renting corpses to bypass fuel queues. Once a prosperous African nation, Zimbabwe's downfall was marked by hyperinflation, reaching an astounding 89.7 sextillion percent, and political mismanagement under Robert Mugabe. The regime's land reforms, which involved seizing white-owned farms and distributing them to political allies, led to a catastrophic collapse in agricultural production. By 2008, the nation faced widespread unemployment, famine, and a failed currency, with public services and infrastructure in ruins. A power-sharing agreement in 2009 brought temporary stability, but economic challenges persisted under subsequent leadership.

Takeaways

• 🇿🇼 In 2003, Zimbabwe faced a severe economic crisis, with people resorting to renting corpses to bypass long gas station lines due to fuel shortages.
• 📉 By 2009, Zimbabwe's economy had collapsed, leading to widespread unemployment, hyperinflation, and a breakdown in basic services like education and healthcare.
• 💎 The roots of Zimbabwe's economic woes can be traced back to its colonial past and the exploitation of its resources by the British South Africa Company.
• 🏭 After independence, Zimbabwe's economy initially thrived due to a strong agricultural sector and a well-educated workforce, but political decisions and corruption soon undermined progress.
• 🌾 Land reforms in the late 1990s and early 2000s, which involved the violent seizure of white-owned farms, led to a catastrophic decline in agricultural production and food security.
• 📈 Hyperinflation reached an unprecedented level of 89.7 sextillion percent, rendering the Zimbabwean currency worthless and necessitating the adoption of foreign currencies.
• 🏦 The government's mismanagement, including excessive money printing and price controls, exacerbated the economic crisis and led to a near-total collapse of the financial sector.
• 🛑 International isolation and sanctions, coupled with a lack of foreign investment, further crippled Zimbabwe's economy and limited its ability to recover.
• 🔄 The political landscape saw a cycle of oppressive rule, with leaders like Robert Mugabe consolidating power and using economic policy to maintain control, often at the expense of the population's well-being.
• 🌐 Zimbabwe's story serves as a cautionary tale about the consequences of unchecked power and the importance of responsible governance for a nation's economic health.

Q & A

What was the bizarre incident discovered by security officers at a hospital in Zimbabwe in July 2003?

The security officers discovered a mortician and his assistant renting out corpses to people desperate for gasoline, who would disguise themselves as hearse drivers to bypass long lines at gas stations.

How did the bizarre side business of renting corpses reflect the state of Zimbabwe's economy?

The rising demand for rented corpses indicated an economy nearing collapse, with Zimbabwe experiencing a severe shortage of basic resources like gasoline, leading to desperate measures by the populace.

What was the inflation rate in Zimbabwe that made its currency worthless?

The inflation rate in Zimbabwe skyrocketed to an insane 89.7 sextillion percent, after which it stopped being recorded.

How did Cecil Rhodes' establishment of the British South Africa Company impact Southern Rhodesia, now known as Zimbabwe?

Cecil Rhodes' company led to the colonization of Southern Rhodesia, resulting in the exploitation of its resources, the establishment of minority white rule, and the creation of a racially skewed land ownership system that would later contribute to economic and social instability.

What was the 'fast-track land reform' announced by Mugabe and what were its consequences?

The 'fast-track land reform' was a policy that led to the violent and chaotic seizure of thousands of white-owned farms, which were then often given to politically connected individuals rather than landless citizens. This resulted in a collapse of agricultural production, food shortages, and further economic deterioration.

How did Zimbabwe's involvement in the Democratic Republic of Congo's civil war affect its economy?

Zimbabwe's involvement in the war cost the country $6 billion, leading to its isolation from international economic aid and exacerbating its economic crisis.

What was the role of the Movement for Democratic Change in Zimbabwe's political landscape?

The Movement for Democratic Change emerged as a significant opposition party to Mugabe's ZANU-PF, challenging his rule and advocating for democratic reforms.

How did the introduction of foreign currencies help stabilize Zimbabwe's economy after the hyperinflation crisis?

The adoption of foreign currencies such as the US dollar, South African Rand, and the Euro ended hyperinflation, brought stability to the economy, and allowed for the resumption of international aid and economic growth.

What were the long-term effects of Zimbabwe's economic collapse on its population and infrastructure?

The economic collapse led to widespread unemployment, a significant drop in life expectancy, a mass exodus of the population, and the collapse of public services including healthcare, education, and infrastructure.

How did the political changes post-Mugabe's era reflect on Zimbabwe's economic policies?

Despite the change in leadership, Zimbabwe continued to face economic challenges due to policies such as increased government spending, manipulation of elections, and the reintroduction of the Zimbabwe Dollar, leading to renewed economic instability.

Outlines

00:00

🏥 Zimbabwe's Desperate Measures for Gasoline

In July 2003, a bizarre incident at a hospital in Zimbabwe's third-largest city revealed a disturbing secret: a mortician and his assistant were renting out corpses to desperate citizens seeking gasoline. This macabre side business was a symptom of Zimbabwe's collapsing economy, which by 2009 had no functioning modern economy. The country, once Africa's wealthiest and most advanced, faced a 94% unemployment rate, widespread starvation, and hyperinflation that rendered the currency worthless. The script also introduces a sponsor, 'Conflict of Nations,' a game simulating global conflict.

05:01

💎 The Rise and Fall of Rhodesia

The script delves into the history of Rhodesia, starting with the establishment of De Beers by Cecil Rhodes after the discovery of a diamond mine. Rhodes' British South Africa Company invaded Mashonaland, leading to the creation of Rhodesia. The company's initial focus on resource exploitation shifted to profiting from European settlers, fostering economic growth through taxes and land value increases. The settlers, particularly farmers, became wealthy, leading to Southern Rhodesia's semi-autonomous status and the establishment of an apartheid state. Despite economic growth, the white minority's grip on power began to wane with the rise of independence movements across Africa.

10:03

🚀 Zimbabwe's Post-Independence Challenges

After gaining independence, Zimbabwe faced numerous challenges. The white minority, fearing loss of power, unilaterally declared independence, leading to international isolation and sanctions. Despite this, the economy grew through secret trade with allies. The government's inability to address the desires of the black majority led to a 15-year conflict known as the Bush War. The end of white minority rule and the establishment of Zimbabwe marked a new era under Prime Minister Robert Mugabe, who initially promised reconciliation and economic potential.

15:03

🌾 The Downfall of Zimbabwe's Agricultural Sector

Zimbabwe's promising start under Mugabe quickly soured as political violence, corruption, and economic mismanagement took hold. The government's policies, including making it difficult to fire workers and imposing price controls, stifled economic growth. The land reform program, which involved violent seizures of white-owned farms, led to a collapse in agricultural production. The government's response to the economic crisis was to print more money, leading to hyperinflation and a further deterioration of the economy.

20:07

📉 Zimbabwe's Economic Collapse and Political Turmoil

The script describes how Zimbabwe's economic situation worsened, with the government resorting to printing money and imposing strict controls on the economy. This led to a cash shortage, bank runs, and a complete collapse of public services and industries. The government's oppressive tactics and the military's involvement in the economy further exacerbated the crisis. By 2008, hyperinflation had peaked, and the country was in a state of near-total economic collapse, with basic commodities scarce and the population facing severe hardships.

25:09

🔄 Zimbabwe's Struggle for Stability

Despite the formation of a unity government to address Zimbabwe's crisis, economic instability persisted. The reintroduction of the Zimbabwe dollar and the government's continued mismanagement led to further economic collapse. The script concludes by reflecting on the dangers of unchecked power, noting that Zimbabwe's struggles stem from the continuation of oppressive minority rule and the failure of leaders to act in the best interests of the nation.

Keywords

💡Mortician

A mortician is a professional who prepares deceased bodies for burial or cremation. In the context of the video, the term is used to describe individuals involved in a macabre scheme where corpses were rented out to people desperate for gasoline. This example illustrates the extreme measures individuals took to cope with the dire economic situation in Zimbabwe, where fuel was scarce and wait times at gas stations were extensive.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The video discusses Zimbabwe's hyperinflation, where prices increased to such an extent that the currency became worthless, with an inflation rate reaching 89.7 sextillion percent. This economic phenomenon is central to understanding the collapse of Zimbabwe's economy and the hardships faced by its citizens.

💡Apartheid

Apartheid was a system of institutionalized racial segregation and discrimination in South Africa, which also influenced policies in neighboring countries like Rhodesia (now Zimbabwe). The video references the establishment of a similar apartheid state in Southern Rhodesia, where blacks were prohibited from owning the most fertile lands and were largely confined to regions with poor conditions. This policy contributed to the economic disparity and social unrest that characterized Zimbabwe's history.

💡Land Reform

Land reform typically refers to the process of changing the distribution of land ownership or land rights. In the video, 'fast-track land reform' is mentioned as a policy initiated by Mugabe's government, which led to the violent seizure of white-owned farms and their redistribution to black citizens. This reform was intended to address historical imbalances in land ownership but was executed chaotically, leading to a collapse in agricultural production and further economic decline.

💡Hyperinflation

Hyperinflation is a term used to describe a period of extremely high inflation, typically characterized by a rapid and continuous increase in the general price level. The video highlights Zimbabwe's experience with hyperinflation, where the government's printing of money led to an inflation rate so high that it rendered the currency worthless and caused a complete breakdown of the economy.

💡Economic Sanctions

Economic sanctions are measures imposed on countries to coerce certain political or economic actions. In the video, sanctions are mentioned as a tool used by Britain and the United Nations against Rhodesia after its unilateral declaration of independence. These sanctions isolated Rhodesia from international trade and finance, exacerbating its economic challenges.

💡Barter System

A barter system is an economic system where goods and services are directly exchanged without using a medium of exchange, such as money. The video describes how, in Zimbabwe, the collapse of the currency led to people resorting to bartering for survival, which became an arrestable offense due to government controls. This reflects the desperation and the breakdown of normal economic transactions in the country.

💡Unemployment Rate

The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment. The video reports a staggering 94% unemployment rate in Zimbabwe, illustrating the severity of the economic collapse and the widespread inability of citizens to find work, which is a direct consequence of the country's economic mismanagement and political instability.

💡Currency Devaluation

Currency devaluation is a deliberate downward adjustment of a currency's value, often by a government or central bank. In the video, Zimbabwe's currency devaluation is mentioned as part of the IMF's Economic Structural Adjustment Program, intended to boost exports by making them cheaper on the international market. However, this policy, along with other economic missteps, contributed to the country's economic turmoil.

💡Political Violence

Political violence refers to the use of physical force or harm in relation to politics, often to achieve certain political goals. The video discusses how Mugabe's government used political violence, particularly through the training of an elite brigade called the Gukurahundi, to target political rivals and suppress dissent. This violence was a key factor in the consolidation of power and the erosion of democratic norms in Zimbabwe.

Highlights

In July 2003, a bizarre scheme was discovered in Zimbabwe where corpses were rented out to bypass gas station lines.

Zimbabwe's economy was near collapse, with schools in disarray and prolonged blackouts.

Once known as Africa's breadbasket, Zimbabwe faced starvation and a 94% unemployment rate.

Inflation in Zimbabwe reached an unprecedented 89.7 sextillion percent before currency became worthless.

Zimbabwe's downfall is attributed to global strategies and mismanagement, leading to company collapses and life savings evaporating.

The British South Africa Company's initial overestimation of mineral wealth in Southern Rhodesia led to a shift in strategy towards European migration.

Farmers became incredibly rich in Southern Rhodesia, leading to a push for semi-autonomous status and apartheid state establishment.

Southern Rhodesia's economic boom post-WWII was marred by racial disparities and land ownership issues.

Robert Mugabe's rise to power in Zimbabwe was marked by initial moderate rhetoric and international support.

Zimbabwe's education and healthcare sectors saw significant improvements in the early years of Mugabe's rule.

Political violence and corruption plagued Zimbabwe, with Mugabe's regime targeting political rivals and consolidating power.

Economic mismanagement under Mugabe included price controls, import taxes, and a ban on foreign company profit transfers, leading to investment halts.

Zimbabwe's economic crisis deepened with the War Veterans Compensation fund scandal and government defaults on loans.

Mugabe's involvement in the Democratic Republic of Congo war cost Zimbabwe $6 billion and international aid cut-off.

The 'fast-track land reform' led to violent farm occupations and a collapse in Zimbabwe's agricultural sector.

Hyperinflation in Zimbabwe was exacerbated by public expectations, leading to a cash shortage and bank runs.

The Zimbabwe dollar was discontinued in 2009, with foreign currencies introduced to stabilize the economy.

Mugabe's reign ended in 2017, but his successor has continued similar economic policies, leading to further instability.

Zimbabwe's story is a cautionary tale of the dangers of unchecked power and the impact of colonial and post-colonial policies on nation-building.

Transcripts

It's July 2003, at a general hospital in Zimbabwe's third largest city.

Security officers on a routine patrol stumble across something bizarre: a person is returning

a corpse to the morgue.

Upon investigating, the officers uncover the disturbing secret: The mortician and his assistant

are not just preparing the dead, they are also renting them out.

But, those seeking to rent the bodies are not motivated by morbid curiosity.

They are ordinary people, desperate for a vital resource: gasoline.

After securing a rented corpse and a falsified burial order, they'd head straight to the

nearest gas station, where wait times stretched not just for minutes, but days.

Now disguised as hearse drivers, they exploited a government policy to bypass the lines, ensuring

their share of the nation’s dwindling fuel supply.

The mortician’s chilling side business, and its rising demand, wasn't merely a bizarre

occurrence; it was a symptom of an economy nearing collapse.

Once one of Africa's wealthiest and most advanced nations, by 2009, Zimbabwe no longer had a

functioning modern economy.

Schools that were once the pinnacle of African education now saw students using dusty floors

as notepads.

Once an electricity exporter, Zimbabwe was plunged into prolonged blackouts — with

power becoming the exception, not the norm.

A nation once hailed as the "breadbasket of Africa" for its massive agricultural industry,

now grappled with starvation and a staggering 94% unemployment rate.

But perhaps the most shocking testament to the country's dire state was its inflation.

Prices didn't just increase, the currency itself became worthless.

Inflation skyrocketed to an insane 89.7 sextillion percent, after which it stopped being recorded.

Almost all companies collapsed, life savings evaporated, and people resorted to bartering

for survival — which became an arrestable offense.

But what led to this dramatic downfall?

How did a nation overflowing with promise implode so devastatingly?

Zimbabwe's economic journey highlights the crucial role of global strategies in shaping

a nation's destiny.

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In 1865, two Dutch settlers purchased a seemingly ordinary stretch of farmland in what is today

South Africa.

However, within just a few years, their land possessed a 215 meter deep, hand-dug chasm,

creatively named "The Big Hole".

By 1888, the big hole was the world's richest diamond mine, an asset then under the control

of the British-born mining magnate, Cecil Rhodes.

Though the brothers had sold the land, their impact lived on, as Rhodes named his new company,

De Beers, now the largest diamond company in the world, in their honor.

Unsatisfied with his mining monopoly in South Africa and propelled by his passion for British

imperialism, Rhodes founded the British South Africa Company in 1889.

Armed with a royal charter from the British crown, the company swiftly invaded Mashonaland.

Soon after, they initiated a military campaign against the Ndebele Kingdom, utilizing the

newly invented Maxim gun with brutal efficiency.

The conquered land became known as Rhodesia named after Rhodes himself, with Southern

Rhodesia being formed in what today makes up Zimbabwe.

Half a million native Africans were relocated to reserves, where they faced taxation, forced

labor, and political exclusion.

For the next three decades, the land was not owned, controlled, or operated by the British

government but by the company itself.

And its primary goal was to exploit the region for all its resources.

Yet the nature of Southern Rhodesia's development was defined by a fundamental mistake.

The Company had overestimated how mineral rich the area was, and continued to do so

for a decade.

Even though the area is rich in diamonds, gold, platinum, chrome, and coal, these resources

were too scattered for the large-scale operations the company had envisioned.

Upon recognizing their oversight, the company pivoted their strategy.

Instead of profiting directly from the land's resources, they decided to profit from those

who could.

By promoting European migration and nurturing a white rural elite, they aimed to accelerate

economic growth.

This approach would then let them collect taxes and royalties, increase rail system

revenues, and, crucially, raise the value of their land holdings.

In exchange, the company granted settlers mining and trading rights, affordable land,

infrastructure, and military protection.

Between 1902 and 1911, the European population doubled, fueled by those seeking to strike

it rich in mining.

Yet as the mining camps grew, it was those who supported the mining industry that became

the real winners, and no group benefited more than farmers.

As farmers poured in to feed the growing population, they realized that the land they tilled was

among Africa's most fertile, ideal for cultivating crops like corn, cotton, wheat, and the highly

profitable tobacco.

These farmers became incredibly rich and powerful, so much so that by 1923 they successfully

persuaded the British government to grant Southern Rhodesia a semi-autonomous status,

liberating it from the oversight of the British South Africa Company.

Under this arrangement, Britain would continue to manage foreign policy, while the white

minority was now able to control internal affairs.

Utilizing their newfound autonomy and drawing inspiration from developments in South Africa,

the white minority established a full-fledged apartheid state.

Blacks were prohibited from owning the most fertile lands, largely confining them to regions

with drought-prone conditions and inferior soils.

In contrast, Europeans, who constituted a mere 2% of the population, were allotted over

70% of the land, encompassing all prime territories.

This disparity between races grew exponentially as Southern Rhodesia experienced an economic

boom following the Second World War.

The scarcity of imports during the war led to dramatic manufacturing growth, while global

demand for food, tobacco and metals led to a windfall of export revenues.

The government subsequently poured resources into creating a sprawling network of paved

roads and constructing the then largest dam and hydroelectric power plant in the world.

Southern Rhodesia was on its way to becoming an advanced and developed economy, but only

for the minority in charge.

Yet by 1964, anxiety gripped the government.

As the European colonial powers began to collapse and waves of independence movements surged

across Africa, the white minorities grip on power had started to wane.

In a desperate move to preserve their political and economic dominance, Southern Rhodesia,

now led by Prime minister Ian Smith, became the first and only white colonial government

to unilaterally break away from the British empire in 1965.

However, upon declaring independence, few international governments recognized it.

Britain successfully rallied the United Nations to enforce strict economic and political sanctions,

casting Rhodesia into global isolation.

Despite this, the economy was able to continue growing, as secret trade with allies like

South Africa and Portugal's African territories ensured a lifeline for the country's commerce.

Though the government managed to stabilize the economy, it was unable to halt the desires

of its people.

The Black populace waged a 15-year conflict, known as the Bush War, against the government.

Launching their operations from bases in neighboring Mozambique and Zambia, two primary anti-government

factions emerged: the Zimbabwe African National Union, led by Robert Mugabe with backing from

China and North Korea, and the Zimbabwe African Peoples Union, under the leadership of Josua

Nkomo and supported by the Soviet Union.

Without support and vastly outnumbered, the Rhodesian government was forced to negotiate

peace, ending white minority rule and birthing the new nation of Zimbabwe.

On February 14th, 1980, a monumental moment unfolded for the people of Zimbabwe as they

participated in the first universal election in their history.

Two months later, on April 18th, Robert Mugabe was sworn in as the country's first Prime

Minister, symbolizing the dawn of a new era many hoped would be prosperous.

Indeed Zimbabwe quickly became the darling of the international community as Mugabe's

rhetoric was unexpectedly moderate.

Despite being imprisoned for 11 years, and labeled a marxist terrorist under the former

regime, he urged reconciliation, stating quote “An evil remains an evil whether practiced

by white against black or black against white”.

With sanctions being removed, substantial existing infrastructure, along with thriving

manufacturing, mining and agricultural sectors, Zimbabwe was teeming with potential.

The task for Mugabe was then clear: make Zimbabwe's potential accessible for all on an even playing

field.

The early signs were promising.

The constitution enshrined education as a fundamental right, mandating it to be free

and compulsory.

Within a year, student enrollment surged by 232%, and by 1984, the number of secondary

schools had multiplied by 587%.

Soon Zimbabwe's education system was recognized as among Africa's best, in what was deemed

a political miracle.

In tandem, over 500 health care centers were constructed within 12 years, allowing millions

to start receiving healthcare.

On top of this, the economy got off to a solid start as agriculture continued to expand.

Post-war peace, regular rainfall, and Mugabe's decision to largely keep the white farming

class intact propelled Zimbabwe to its reputation as the 'breadbasket of Africa'.

However, beneath the impressive façade of modern schools, hospitals, and agricultural

growth, lurked a disturbing blend of political violence, corruption, and economic mismanagement.

In August 1981, Mugabe enlisted North Korean military instructors to train an elite brigade

he nicknamed the Gukurahundi, a term translating to “The early rain which washes away the

chaff”.

Using these troops, Mugabe systematically targeted the supporters of his main political

rivals, namely Nkomo and his ZAPU party.

Largely composed of ethnic Ndebeles residing in Western Zimbabwe, an estimated 20 to 80

thousand were killed within just 4 years.

With ZAPU's influence now weakened, Mugabe orchestrated a one-sided merger of the two

parties, establishing a de-facto one-party state under his command.

Using his newfound dominance, he overhauled the constitution to make himself Executive

President, which allowed him to dissolve the senate and tighten his grip on the legislature.

As Mugabe's political power grew, so too did the audacity of his economic policies.

legislation was passed making it virtually impossible to fire workers, price controls

were placed on a host of goods, new import taxes arose to shield domestic industries

from competition, while a new licensing system required any and all private investments to

be subject to government approval.

Along with a ban on foreign companies moving profits overseas, investment ground to a halt.

The inability to fire workers made companies hesitant to hire any, and stifled the growth

of labor intensive industries.

State-owned enterprises, now controlled by Mugabe loyalists, were the sole beneficiaries.

Although the policies were touted as aids for the impoverished, they also covertly aimed

to curtail the rise of a formidable black middle class, as it was feared they would

eventually pose a challenge to the regime.

Indeed, Economic policy became an extension of Mugabe's political aims, and his preferred

method for gaining support was by spending outrageous sums of money.

Between increased spending on education, healthcare, sizable monthly payouts for veterans, and

a stunning 60% growth in the government's payroll, expenses spiraled out of control

and the government grew an unhealthy addiction to international loans.

By 1989, half of Zimbabwe's entire GDP came from government spending, and unemployment

had risen to 26%.

Facing pressure from international lenders to reduce this spending, government officials

recognized the need for policy change to ensure the regime's survival.

Under the IMF's Economic Structural Adjustment Program, Zimbabwe devalued its currency to

boost exports.

Price and wage controls were eased to address unemployment, and trade barriers were reduced

to accelerate private sector growth.

However the economy quickly entered a sharp recession as most industries struggled against

a flood of cheap imports, while a series of severe droughts saw agricultural output plummet.

Simultaneously, Mugabe had failed to curtail spending even as tax revenues fell.

The accumulation of debt accelerated and the government increasingly turned to money printing

to fund expenses, driving inflation above 20% annually.

However by 1996, Zimbabwe was finally starting to see the reforms pay off as economic growth,

exports and foreign investment began to rise quickly.

However, it was already too late.

That same year, the War Veterans Compensation fund had run dry after years of depletion

from corrupt government officials, with $450 million being stolen in just 8 months.

With halted payments, the veterans—who had played a pivotal role in ousting the previous

government two decades earlier—started organizing intensifying protests.

In a desperate move to quell the unrest, Mugabe agreed to start paying out a new monthly allowance,

amounting to twice the salary of civil servants and which equaled 3% of the nation's entire

economy.

Reacting swiftly to this move, the World Bank, which was in the process of providing Zimbabwe

with a $100 million loan facility, suspended the arrangement, pending a detailed plan on

how the new payments would be financed.

In response Mugabe stopped all debt repayments, ultimately defaulting on loans from the World

Bank, IMF and the African Development bank.

The ramifications were immediate.

Investor confidence was shattered causing the Zimbabwe Dollar to lose 75% of its value

in a single day.

As this caused the government's import bill to instantly skyrocket, Mugabe sought to increase

taxes.

But faced with immediate, intense opposition and riots, he backed off.

Yet, the defining blow for Zimbabwe occurred in 1998 when Mugabe dispatched 11,000 troops

to the Democratic Republic of Congo, supposedly to support its leader, Laurent Kabila, in

a civil war fueled by Uganda, Rwanda, and Burundi.

In reality, Mugabe's motives were likely driven by resource exploitation.

In a revealing TV interview, a Zimbabwe colonel stated, “There are fortunes to be made in

the Congo…

So why rush to conquer the rebels?"

However, the involvement in the war not only cost Zimbabwe $6 billion, money the government

did not have, but it also led to the country being cut off from all international economic

aid.

By the end of the decade, Zimbabwe, burdened with heavy debt and deprived of international

financing, was spiraling.

However, the worst was yet to come.

On September 11, 1999, a coalition of civic groups, labor unions, and white farmers established

the Movement for Democratic Change, a party that quickly emerged as a formidable opposition

to Mugabe's ZANU-PF, setting the stage for an unexpected political outcome.

Concerned about the nation's intensifying crisis, Mugabe called for a referendum on

a new constitution.

This proposed constitution would grant government officials immunity from prosecution, empower

Mugabe to pursue two more terms in office, and permit the government to redistribute

land from white owners to black citizens without compensation.

The last of which had become especially pressing.

Despite two decades passing since independence, the imbalance in farmland ownership was glaringly

evident.

By 1999, even though whites constituted just 1% of the population, they owned over 70%

of the arable land.

As the economic crisis deepened, this stark disparity increasingly became a focal point

of public discontent.

Drawing from a playbook used by many dictators throughout history, Mugabe aimed to bolster

his waning popularity by targeting an economically crucial, yet widely resented, minority.

But, even with Mugabe's grip on the media, schools, police, and the military, the voters—galvanized

by the Movement for Democratic Change—decisively rejected the proposed constitution.

Humiliated by the political defeat, Mugabe announces what he called, the “fast-track

land reform”.

Immediately, War veterans, and those claiming to be, spearheaded a series of violent farm

occupations, which quickly spiraled into a chaotic land grab.

Thousands of farms covering 110,000 square kilometers were seized, affecting 150,000

families and displacing 300,000 black farm workers.

And while 130,000 landless citizens had aided in the takeovers, only a small percentage

actually received land.

Instead, the vast majority of the seized property ended up in the hands of ZANU-PF elites.

Many of these new landowners lacked the experience or even the desire to farm.

Some simply stripped the farms of their valuable assets and then deserted them.

The effects were devastating.

Within just three years, wheat production plummeted by 91%, corn by 66%, and tobacco

by 75%.

In one fell swoop, Mugabe had destroyed the most important sector of the economy and wiped

out the nation's food supply.

As famine loomed, access to food aid became contingent upon loyalty to the government

or substantial bribes.

The government's suppression of information ensured that the full magnitude of the disaster

remains obscured even today.

With the currency plummeting further and prices skyrocketing, the government, having exhausted

all previous options, was now left with just two.

It could either cut spending, which would cause a severe but necessary depression, or

it could resort to funding everything by simply creating more money.

Opting for the path of least political resistance, the government flooded the market with new

higher denomination currencies.

But what was intended as a short-term solution rapidly spiraled beyond the government's control.

With inflation surging past 100%, families found their budgets inadequate to make ends

meet and companies realized their revenues had not been enough to cover costs.

Few had accurately anticipated the extent of the price hikes, but the lesson was now

clear to all.

From this point on, inflation wasn't solely a reflection of the money supply—it was

also influenced by the public's expectations of future inflation.

This created a situation where prices started to climb even before new money entered circulation,

introducing a strange new paradox.

Even though the money supply had surged nearly tenfold just two years after land reforms,

a shortage of cash emerged, triggering a run on banks.

To avert the collapse of the financial sector and the broader economy as a whole, the government

felt compelled to print even more money.

However, this step further undermined confidence in the Zimbabwe dollar, perpetuating the destructive

cycle.

As people increasingly adopted alternative currencies, the government's grip on the situation

began to weaken.

Recognizing this, the government turned to drastic measures.

They imposed bank withdrawal limits so meager they couldn't even cover a bus fare to the

bank.

Shop owners faced prison time if found accepting foreign currencies.

Zeros were simply chopped off of the currency when checks lacked the space to accommodate

the long strings of digits.

And when the government's foreign currency reserves ran dry, it took to outright theft.

Pension funds were arm-twisted into purchasing devaluing government bonds, annihilating the

life savings of millions.

Exporters found themselves cornered, forced to exchange their hard-earned foreign currency

for Zimbabwe dollars at abysmal rates.

Farmers and miners became required to sell exclusively to the government, often at prices

so low that turning a profit became unfeasible.

As the government resorted to price control and simply declaring inflation illegal, by

2006 virtually every single store in the country had gone bankrupt, as mandated prices on goods

were lower than the cost to restock them.

As Manufacturers followed suit, Zimbabwe rapidly de-industrialized as production ceased and

imports replaced all goods.

One after another, public services like electricity, sewage, transportation, schools, and hospitals

crumbled as by the time they received funding, the money had already depreciated to almost

nothing.

Many professionals, foreseeing a grim future, fled the nation, leading to crumbling infrastructure

and an alarming deficit of doctors and teachers.

The only institutions that remained functional were the police and military, due to being

given preferential treatment by the government.

However, they transformed from public services to oppressive forces, extracting bribes from

the suffering populace and brutally suppressing any political dissent.

By 2008, It was now nearly impossible to find basic commodities such as food, toilet paper,

or fuel.

Cancer and HIV patients stopped receiving care, children stopped receiving education,

and everyone was at risk of imprisonment for resorting to foreign currencies and the black

market to survive.

Unemployment reached 94% and inflation peaked at 89.7 sextillion percent.

In truth, inflation approached infinity as the Zimbabwe dollar ceased to be used by anyone,

including the government.

GDP per capita was now a third of its level at independence, life expectancy had dropped

by over 20 years, and an estimated 30% of the entire population had fled the nation.

Yet, amid this turmoil, a silver lining emerged.

With the backdrop of economic chaos and intensified by political violence from a contentious 2008

election, the major political factions found common ground.

They brokered a power-sharing agreement, giving rise to a national unity government.

While Mugabe remained in power, the coalition succeeded in curbing some of his more extreme

tendencies.

By April 12th, 2009, the Zimbabwe dollar was officially discontinued, with foreign currencies

stepping in as replacements.

The introduction of the US dollar, South African Rand, and the Euro ended hyperinflation, bringing

a semblance of stability.

International aid flowed back in, and, briefly, economic growth returned.

However, this ray of hope was short-lived.

By 2013, Mugabe and the ZANU-PF had returned to their old tactics, employing voter intimidation

to sway the election in their favor.

Not long after, in a move that dumbfounded many, Mugabe doubled the civil service and

started printing new 'bond notes'.

That same year the economy collapsed once again with the finance minister stating quote

“Right now we literally have nothing”.

Mugabe's reign finally came to an end in 2017 as he was ousted in a coup and replaced by

his vice president, Emmerson Mnangagwa.

However, his reign has echoed Mugabe's missteps, with lavish spending, election manipulations,

and in 2019 the revival of the Zimbabwe Dollar.

Inflation since has once again soared past 500%.

Zimbabwe's tumultuous journey serves as a poignant reminder of the dangers of unchecked

power.

Its struggles are not because post-colonial African nations can’t succeed, rather they

come from a tragic continuation of oppressive minority rule, with newer leaders mimicking

the despotic tendencies of their colonial predecessors.

These leaders, once champions against colonialism, became intoxicated by power, viewing themselves

not as protectors but as proprietors of their nations.

Zimbabwe's rapid disintegration underscores a fundamental truth: a leader with too much

power can be as damaging as any outside enemy.

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