Source: How deep is the Zimbabwe crisis? | The Financial Gazette February 22, 2018
President Emmerson Mnangagwa and his Vice Presidents, Constantino Chiwenga (left) and Kembo Mohadi (right)
By Munyaradzi Mugowo
ZIMBABWE’S crisis is not a typical economic downturn to which governments usually respond with countercyclical adjustments to mitigate downside risks and stabilise the economy.
It is a multi-faceted condition of self-reinforcing instability with deep political, policy and institutional roots dating back to the 1990s.
By the time long-ruling president, Robert Mugabe, resigned in November 2017, the crisis had escalated to a national emergency with government fighting all sorts of economic fires including encroaching economic recession; resurgent inflation; an extremely dire fiscal position; crippling shortages of foreign currency and cash dollars; a critical balance of payment (BoP) position; mounting sovereign debt distress; high and semi-permanent unemployment; fragile financial markets; persistent liquidity crunch; and declining social services.
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