Zimbabwe is in the middle of the greatest economic crisis ever seen purely as a result of government policy and most of it has happened on this govenor's watch, says Andrew Pocock, British Ambassador to Zimbabwe.

By Lee Shungu

"In January, the poverty datum level for a family of six was $458, 000. At the end of June, it was $8.3 million, a 13, 000 percent increase in six months."

Figures from the British Embassy indicate in a decade, local prices in Zimbabwean dollars have increased 1 million times.

Pocock says figures are no longer being published because they make such depressing reading but the fact of the matter is that the Zimbabwean dollar has lost 99.95 percent of its value in 14 months.

One of the reasons for this is government expenditure is running at 140 percent of Gross Domestic Product (GDP).

Soon after the controversial Land Reform Programme and the hefty sums of money awarded to war veterans in the late 90s, Zimbabwe's economy has been on a downfall. The rate of inflation is currently 7,892.1 percent and is rumoured to have escalated to figures around 14, 000 percent.

Pocock cites the social contract has been a failure.

"We felt it was unworkable at the time but it turns out that the only element of it which has been implemented is price controls."

He is also critical of of the 51 percent Indegenisation Bill and finds the need that business had to pay hard to comprehend.

"The Bill will be the last nail in the coffin for the private sector in this country and kill any possibilities of overseas investment. How does the government of Zimbabwe see this?," he said.

The country continues to face adverse challenges in the face of the government making and taking decisions without seeking advise or thinking ofthe consequences.

For instance, fuel companies were not consulted about the prize freeze and whether they could source fuel at the new, reduced prices.

"We are looking, not just at a seige economy, but the end of the formal economy in Zimbabwe as it now exists. I can't say exactly when this will happen- and some sectors, such as minerals will continue. But, I see the end of an economy that pays wages in sight and I say this with no pleasure at all," emphasises Pocock.

The country has run out of foreign currency, edicts on fuel coupons are bringing the country to a stand still and we have the 51 percent Indigenisation Bill to look forward to.

"What is left? A hilltop, sticking out of a flood of disaster, with the party members hanging onto the slopes while the deluge they created sweeps everything away."

"It is a situation crying out for change. Where will it come from? Certainly not from us. I believe there are two sources."

Pocock adds external help can only mean SADC which means South African President Mbeki's initiative which is not going well.  Out of the five scheduled sessions, the government didn't come to three of them, for various reasons.

"Normally, a government in this situation would be looking for a way out, and for Zimbabwe, that means South Africa," he said.

"We don't get the sense that Zanu is looking for a way out: they want help without conditionality- "We are sovereign, we accept no advice."

"This is unacceptable to South Africa, but the truth of the matter is that the options Mbeki has are unpalatable ones."

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