Inflation in Zimbabwe has broken all the records and is first such country of the list where inflation has reached to an uncountable percentage. Name of Zimbabwe will probably appear in the Guinness Book of World Records. In March 2008, inflation was 3,55,000 per cent, which was the double of the inflation in February 2008, when it was 1, 65,000 per cent. We have to say thanks to the Country’s Central Bank (CCB) and the people who are involved in inflation calculation. How they are able to calculate the 3, 55,000 per cent inflation is out of the intelligence of normal people.
What does this level of inflation in Zimbabwe mean to the poor residents of the country? It means that Zimbabweans are purchasing a sandwich for Zimbabwean $50 million, sounds crazy? One kg of potatoes cost Zimbabwean $17 million. Effectively, this means that the value of Zimbabwean dollar has reached almost to zero. Hence 50-million Zimbabwean dollar equals to only1 US$… really only one US$. And also, 50 million Zimbabwean dollar equals to almost 42 Indian rupees.
On May 2, 2008, Reserve Bank of Zimbabwe (RBZ) issued currency note of 500 million dollars, which had an expiry date. Once again a crazy talk? But true, the Zimbabwean $50, 0000000.00 will be a bearer cheque with validity up to December 31, 2008. After December 31, 2008, no body can accept it.
Zimbabwe is a country, which has reached a state of laissez-faire with more than 80 per cent of people unemployed. But it is really a wonder that how at this level of inflation, the economy of Zimbabwe is still surviving, banks are still working, accountings are still being done, the country has observed election and Robert Mugabe has lost, but still not very large scale of violence has been reported!
Iraq is the second country of the world, which has registered the highest inflation of 53.2 per cent. Thanks to the USA and its ruthless policy, which has forced the one-time growing and developing Iraq to a war-trodden country. 53.2 per cent inflation in Iraq has crippled its economy.
Another country in the list is Guinea with a whooping 30.9 per cent inflation. Irony is that Guinea is the country blessed with rich mineral resources, gold, diamond and huge iron ore deposits, but is still one of the poorest countries of the world!
Yemen is the other country, which is suffering from high inflation – as high as 20.8 per cent. The country is having more than 87 per cent of poor population. Recently in news due to ‘Nargis’ cyclone, which has taken lives of more than one lakh of people, Myanmar is also not far behind and more than 20 per cent of inflation. Military Junta is so vicious that it is putting lot of obstacles in sending any help to the cyclone hit people by world community. Erstwhile Soviet nation country, Uzbekistan, is also having a high inflation of 19.8 per cent. Another African country, Congo, is struggling with 18.2 per cent inflation. Afghanistan, the country, which is trying to recuperate of the war, is having inflation more than17 per cent. Serbia is having inflation of 15.5 per cent.
Most of the countries, which are struggling with very high inflation, are also named among the poor countries of the world. Inflation hit hard to the poor people and the poor countries too. Most of the inflation hit countries are African countries, which are either war-trodden or suffering from other economic or social crisis.