Chart of the week: the ruin wreaked by Mugabe
In 1980, Zimbabwe was among the top ten sub-Saharan African economies. Between 2000 and 2008, however, GDP halved. Now, inflation-adjusted per-capita incomes remain 15% below the 1980 figure.
Robert Mugabe is reportedly about to receive a $10m payoff as a reward for ruining his country. In 1980, Zimbabwe was among the top ten sub-Saharan African economies. It was relatively diversified and its healthy agricultural sector made it the bread-basket of southern Africa. Between 2000 and 2008, however, thanks to farm seizures, rampant corruption, hyperinflation and rapid emigration, GDP halved. A gradual recovery over the past ten years has barely returned the economy to late-1990s levels. Inflation-adjusted per-capita incomes are still 15% below the 1980 figure.
Viewpoint
"Productivity is a measurement of output per employee hour, and in this France leaves the UK trailing. This is probably an effect of France's employment laws: it is much more expensive there than here for firms both to take on and to fire employees, so its businesses invest more in machinery that replaces workers. Yet, also at least in part because of its labour laws, France has a significantly higher percentage of unemployed than the UK. And as by definition they don't work, they are not part of the productivity statistics. [This means that] France, in its output per person of working age, is probably not ahead of the UK at all."
Dominic Lawson, The Sunday Times
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
What does an interest rate cut mean for my pension?Interest rates have been cut from 4% to 3.75%. For pension savers and retirees the effects of the drop will depend on the type of retirement pot they have, but could be significant.
-
What are my retirement income options?We’re all told to save into a pension, but there’s widespread confusion about how to take an income from our savings and investments at retirement, a new study has found. We look at your retirement income options.
