For the millions of hungry and unemployed, Zimbabwe's once vibrant economy has collapsed. For the tiny rich elite, it hasn't. The thriving black market keeps their cars on the streets and their cupboards replete with food and luxuries. \nEconomic meltdown in Zimbabwe is a question of perception, financial analysts and bank executives say. Unlike a bankrupt firm, a country doesn't simply shut down. \nIt prints its own money, its industries battle to stay open -- factories run at less than 40 percent of their capacity in Harare -- and on the surface, there appears some normality. \nBelow it, however, a different picture emerges. Most gas stations in the capital have not received fuel deliveries for a month because of hard currency shortages for fuel imports by the state oil procurement monopoly. \n"As long as you can print your own money, you don't go bust. It causes inflation and a host of other problems, but you can grind on for a long time," said Harare economist John Robertson. \nBlack market gasoline, selling for four times the government's fixed price, keeps traffic moving. \nAdvertisements in the main state newspaper regularly offer "fuel available" and give mostly mobile phone numbers for price quotations. \nWhile shelves are bare in regular stores, other advertisements offer foodstuffs, cooking oil and even bank note counting machines to help traders in the hyperinflationary economy do their business. \nHyperinflation \nRobertson said about 6,000 Zimbabwe dollars buys today what 100 Zimbabwe dollars bought in 1995. \nThe official hard currency exchange rate rose from about 8 Zimbabwe dollars to US$1 in 1995 to 824 to 1 this year, alongside a current black market exchange rate of up to 2,700 to 1. \nThe state Central Statistical Office said last month annual inflation reached a record 269 percent and unemployment exceeded 70 percent, driving many unemployed to scavenge for goods to sell in order to survive. \nThe chaotic government seizures of thousands of white-owned farms have been blamed for starting three years of political violence and disruptions in the agriculture-based economy that in turn have led to acute shortages of food, fuel, power, medicines and other imports. \nAccording the UN World Food Program, nearly half of all Zimbabweans will need food aid this year to avoid mass starvation. About 80 percent of the people live in poverty. \nA fraction of the rest -- perhaps 3 percent, mostly President Robert Mugabe's ruling party elite and their business associates -- control the hugely profitable black market in goods and hard currency, Robertson said. They are enjoying boom times. \nAgencies selling limousines and even luxury cosmetics said that sales are brisk. \n"Shortages are profitable. The people who could fix the situation are the ones who are making a fortune out of it," Robertson said. \nOrdinary Zimbabweans "get up in the morning and try to find something to survive on," he said, adding that some join in spiraling crime. \nThe farm seizures and political violence since 2000 have disrupted production of tobacco, the main hard currency earner, and slashed hard currency earnings from mining, industry and tourism. \nMugabe,79, who has been in power for 23 years, traveled to Libya this week to discuss the resumption of gasoline supplies, cut off after Zimbabwe failed to pay US$62 million in arrears for previous shipments. \nZimbabwe, which needs about US$30 million worth of fuel a month, contracted with Libya last year to supply 70 percent of the country's gas, some of it traded for Zimbabwean beef, sugar and tobacco. \nFarms disruptions have prevented those deliveries. \nAnti-government strikes called by the opposition Movement for Democratic Change shut down much of the economy June 2 to 6, but street protests demanding democratic reform were thwarted by a massive show of force by police, troops and ruling party militia backed by armored cars, water cannons and helicopters. \nThe protests appeared of little concern to one pro-Mugabe businessman who threw his 50th birthday party soon afterward. He hired a replica of a Mississippi paddle steamer on Zimbabwe's northern Lake Kariba, according to guests at the party. \nThe calligraphy for the handwritten dinner place name cards alone cost five times Zimbabwe's average annual per capita income.
NEXT STEP? The contract chipmaker said it would decide whether to add more plants based on operation efficiency, cost economics and demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is planning to build several more chipmaking fabs in the US state of Arizona beyond the one already planned, three people familiar with the matter said. TSMC, the world’s largest contract chipmaker, announced in May last year that it would build a US$12 billion fab in Arizona. The 12-inch wafer fab in Phoenix is expected to start mass production in 2024, the Investment Commission said in December, when it approved the plan. Three sources familiar with the matter, speaking on condition of anonymity as they were not authorized to speak to the media, said that up
VIRUS CURBS: Visiting people staying at healthcare and long-term care facilities in Taipei, New Taipei City and Taoyuan is banned until May 17, the CECC announced The Central Epidemic Command Center (CECC) yesterday banned visits to patients or residents at healthcare and long-term care facilities in three cities until May 17. It also reported six imported cases of COVID-19 and two cases with unclear infection sources. As the number of locally transmitted cases rises, some of whom have visited many places in Taipei, New Taipei City and Taoyuan, enhanced disease prevention measures have to be implemented in the three cities, said Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center. “Visiting people staying at healthcare and long-term care facilities in Taipei, New Taipei City and
TAKING NOTICE: In the first time that G7 foreign ministers have mentioned Taiwan in a joint communique, they called for ‘peace and stability across the Taiwan Strait’ The Presidential Office yesterday thanked the G7 foreign ministers for their strong support of Taiwan after the group in its joint statement on Wednesday called for the nation’s participation in the WHO, and the importance of peace and stability across the Taiwan Strait. The ministers in a communique issued at the end of their three-day meeting declared support for “Taiwan’s meaningful participation” in WHO forums and the World Health Assembly (WHA). “The international community should be able to benefit from the experience of all partners, including Taiwan’s successful contribution to the tackling of the COVID-19 pandemic,” it said. The statement included a section
UP TO TWO DAYS: Minister of Health and Welfare Chen Shih-chung said that most who got the shot and felt discomfort only felt ill for the first two days Employees can ask for unpaid COVID-19 vaccination leave, from the day of their shot until the end of the next day, the Central Epidemic Command Center (CECC) announced yesterday, adding that the policy takes effect immediately. “The policy of unpaid COVID-19 vaccination leave will be implemented starting on May 5, and all workers and civil servants will be eligible,” Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, told a news conference. Leave can be taken on the day of vaccination and if recipients feel discomfort after getting the shot, they can extend the leave to all of the