Saturday, August 11, 2007

Mugabe brings business to standstill


It is a basic principle of markets that price is determined by supply and demand. If an outside agency, such as the ideologically Marxist Zanu-PF government, instead sets the price too low, suppliers will not produce - hence the empty shelves in Zimbabwe's supermarkets. Price inspectors have descended on shops across the country to enforce the government's order cutting prices to June 18 levels, forcing them to sell their stock cheap to the queues of people who line up to take advantage of the opportunity.

"It's literally looting that's taking place," said the factory owner.

"Of course when those raids take place they have informed all their friends.

"We don't have any stock for those people to pillage. We have no raw materials in store, we have no packaging. Then of course there is the next level of threat. They now say 'if you don't open to trade we will withdraw your trading licence and take over your business'.

"This is building fear and fear is their weapon, their one and only weapon these days. ..."

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