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IMF: Zim is Africa's sore thumb
04/07/2007 19:25 - (SA)
Accra - Zimbabwe is a sore thumb for the African continent which last year enjoyed an average economic growth of around 4.5% and single digit inflation rates, the International Monetary Fund (IMF) said on Tuesday.
"Consumer prices altogether came down to single digit, excluding Zimbabwe," said IMF deputy managing director Takatoshi Kato. Zimbabwe has a world record annual rate of inflation estimated at more than 5 000%.
Kato told a news conference on the sidelines of the African Union summit of the institution's concern "at the heightened rate of inflation (and its impact) on the people at large".
He said the regime of Zimbabwean President Robert Mugabe bore the responsibility to thrash out "very comprehensive measures head on" to curb the crisis while neighbouring countries bearing the brunt of the crisis should do more to stem a looming collapse of the country.
"We would welcome any further dialogue between neighbouring African countries and Zimbabwe," said Kato.
"The situation in Zimbabwe is affecting neighbouring countries very dramatically; it's also the responsibility of the authorities.
Neighbouring countries can assist Zimbabwe, "but in the end it's really the responsibility of the (Zimbabwe) authorities to address the current situation," said Abdoulaye Bio-Thiane, IMF director for Africa.
South Africa which hosts more than 3m Zimbabwean economic refugees is mediating in dialogue between Harare and opposition officials.
But sources close to the talks said nothing much should be expected to come out of the discussions to help Zimbabwe out of its crises.
The solution calls not only for fiscal, monetary and social reform, but also political.
But a World Bank official attending the AU summit, who spoke on condition of anonymity, said the country was doomed to collapse.
"I don't think that they (Zimbabwe authorities) can avoid collapse, given where they are now, given the lack of taste for embracing any reforms, given also the depth of the kind of reform that will be needed, and the time for recovery," the official told AFP.
His prediction was of a "total collapse" of what he called "a basket case for all the region".
He slammed fellow African leaders for failing to put the Zimbabwe crisis on the summit agenda.
"The live and let live attitude integral to the AU policies of not intervening in other peoples' countries has not helped," he said.
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