WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2002-04-28 Posted By: Jan
From the News Archives of: WWW.AfricanCrisis.Org
Date & Time Posted: 4/28/2002 11:04:04 PM
Zim Farm Seizures cost $72 Billion
Source: Zimbabwe Independent (124)| April 26, 2002 (124)| Augustine Mukaro
ZIMBABWE is set to lose $72 billion this year in gross domestic product (GDP) as government proceeds to seize all remaining white-owned farms.
President Robert Mugabe has said Zimbabwe’s economic recovery hinges on his agrarian revolution but the implementation of the land reform programme has failed to guarantee continuity in production levels, instead threatening food security and foreign currency earnings.
Zimbabwe has a GDP of $488 billion and, before the orgy of farm invasions started two years ago, the contribution of commercial farm production was 17%.
Acting Commercial Farmers Union (CFU) president Doug Taylor-Fremme this week said if, as anticipated, 90% of farmers stopped farming, $72 billion (or 14% of GDP) would be lost.
He said last year Zimbabwe exported goods worth US$2 billion in which the commercial farming sector contributed US$765 million or 38% of the total forex earnings. With 90% of the farmers expected to cease production, at least US$689 million in foreign currency will be lost.
In the livestock category, the commercial farming sector produces 80% of the export beef, contributes 95% of pork and pork products, 99% of ostriches, 90% of dairy and 100% of chicken including foundation stock to the country’s total output.
For crops it contributes 90% of tobacco, 95% of tea, 99% of coffee, 97% of sugar, and 90% of paprika, while in the cereals category it contributes 95% of soya beans, 90% of wheat, and 95% of barley.
It currently provides 90% of urban consumption needs.
Apart from heavy losses to foreign currency reserves, economists have said the demise of commercial agriculture would trigger a serious social crisis stemming from unemployment.
The commercial farming sector employed more than 350,000 workers with an annual wage bill of $15,1 billion as of January 2000.
The appropriation of commercial farmland has resulted in retrenchments of 90% of the workforce, which translates to the loss of $13.6 billion spending power due to the lay-offs resulting from farm occupations.
The retrenchments mean that the government has to spend more on welfare. Economists say at least 60% of Zimbabwe’s total population could soon be on welfare due to crop failure induced by drought and stalled production.
Economist John Robertson said GDP shrunk significantly in all sectors over the past two years and is expected to shrink further if the current damaging agrarian policies are pursued.
“GDP shrunk by 4,5% in the year 2000 and 7,5% in 2001 despite the fact that weather conditions were favourable in the two years. It is forecast to shrink by between 10% to 12% this year mainly because of farm invasions but the inter-linkages of all sectors would result in further decline,” he said.
Another economist who requested anonymity said the crisis which Zimbabwe faced was a result of inappropriate macro-economic policies resulting in investors and donors shunning the country, hence the dramatic shrinkage of GDP.
“In the past GDP used to have a positive relationship with good rains but since 2000 it has been shrinking which makes us question the policies at play,” he said.
“The food shortages are not a result of this year’s drought but a build-up from the prevailing political atmosphere.”
He said the country was set to plunge into an even worse crisis if fundamental issues such as restoration of investor confidence, reducing uncertainties and risks, restoration of the rule of law and the preservation of property rights were not addressed.
“There is a high possibility that by next year there won’t be any export of agricultural products, including the main foreign currency earner tobacco, if government goes ahead and designates the remaining commercial farms,” he said.