Do we realise the whole of the City of Kwekwe depends on Zisco Steel? So, if the sanctions on Zisco Steel cause Zisco to fail, wont Kwekwe become a ghost town? Kwekwe will definitely be a ghost town without Zisco Steel, and every family in Kwekwe will suffer as a result. How do sanctions on the whole of Kwekwe make Mugabe and Gono suffer? Wont Gono and Mugabe just loot the little forex inflows whilst Kwekwe households are wallowing in poverty?

It would be good to get a response from Eddie Cross on this one.

Let me start with the facts first and my comments are at the end.

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From Wikipedia, the free encyclopedia
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The Zimbabwe Democracy and Economic Recovery Act (S. 494) is an act passed by the United States Congress which sanctioned Zimbabwe for its involvement in the Second Congo War and the government’s unwillingness to make the transition to democracy

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From Whitehouse.gov
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Statement by the President

Today I have signed into law S. 494, the “Zimbabwe Democracy and Economic Recovery Act of 2001.” This Act symbolizes the clear bipartisan resolve in the United States to promoting human rights, good governance, and economic development in Africa. My Administration shares fully the Congress’ deep concerns about the political and economic hardships visited upon Zimbabwe by that country’s leadership. I hope the provisions of this important legislation will support the people of Zimbabwe in their struggle to effect peaceful democratic change, achieve economic growth, and restore the rule of law.

Section 4(c) of the Act purports to direct the executive branch to oppose and vote against the extension of loans or the cancellation of debt in international financial institutions unless and until I make a certification or national interest determination. I am concerned that this provision burdens my constitutional authority in the area of foreign affairs to conduct negotiations and cast votes in international organizations. I will construe the provision as being subject to my exclusive authority to negotiate or vote in international financial institutions.

GEORGE W. BUSH
THE WHITE HOUSE,
December 21, 2001.

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From CNN.com November 15, 2008 — Updated 1303 GMT
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ISLAMABAD, Pakistan (CNN) — Pakistan’s government has agreed to a $7.6 billion aid deal with the International Monetary Fund (IMF), Pakistan’s top finance official said.
The IMF endorsed Pakistan’s homegrown program after a review and agreed to the aid package to be paid out overtwo years to help Pakistan meet short term financial needs, including balance of payments, said Shaukat Tareen, the finance advisor to Pakistan’s prime minister.

“The only thing which we debated was the interest rates,” Tareen said. Pakistan agreed to a two percent interest rate, he said.

Pakistan expects to receive the first installment before the end of the month with further payments spread over a two-year period, according to The Associated Press.

The loan will be used to bolster Pakistan’s dwindling foreign currency reserves amid concern that a run on the Pakistani rupee could force the country to default on its international debt, AP said.

The U.S. sees nuclear-armed Pakistan as a crucial regional ally in the so-called “War on Terror” and is concerned that economic instability in the country could undermine the government in Islamabad’s efforts to counter insurgents in the semiautonomous northwestern tribal regions bordering Afghanistan.

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SW Radio Africa (London) 28 July 2008 by Violet Gonda
Allafrica.com

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Last Friday the United States broadened sanctions against members of the Mugabe regime and its supporters.

Below is the list of the new companies and entities added to the sanctions list by the US Treasury Department:
The Minerals Marketing Corporation of Zimbabwe (MMCZ), the sole marketing and export agent for all minerals, except gold and silver, mined in Zimbabwe;
The Zimbabwe Mining Development Corporation (ZMDC), involved in investment in the mining industry in Zimbabwe, and in planning, coordinating and implementing mining projects on behalf of the Government of Zimbabwe;
The Zimbabwe Iron and Steel Company (ZISCO), Zimbabwe’s largest steel works;
The Agricultural Development Bank of Zimbabwe (Agribank), a commercial bank owned by the Government of Zimbabwe;
The Industrial Development Corporation of Zimbabwe Ltd, a state-owned enterprise that owns a large number of companies operating in the industrial sector, including the chemical, clothing and textiles, mineral processing, and motor and transport sectors;
The Infrastructure Development Bank of Zimbabwe, a financing entity;
Zimre Holdings Limited, an investment and reinsurance entity;
ZB Financial Holdings Limited, a holding company for a group of companies involved in commercial and merchant banking;
And 4 major subsidiaries of ZB Financial Holdings Limited: ZB Bank Limited (Zimbank), ZB Holdings Limited, Intermarket Holdings Limited, and Scotfin Limited.

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My comments
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The government of Zimbabwe lies a lot, everyone knows that. But anyone who says there are only targeted sanctions imposed on Zimbabwe is also a liar. Here are the reasons why:

The suffering that you see right now in Zimbabwe is mainly because of Zanu PF corruption, greed and selfishness. BUT the suffering of innocent Zimbabwean people is compounded by sanctions targeted at ruining the economy.

Any decent independent economist who is honest will tell you that sanctions are compounding the situation.

In black and white its written in the ZiDER Act that the US will oppose any financial support to the Zimbabwean Government from the IMF, World Bank and African Development Bank. ZiDERA is targeted at the Reserve Bank by preventing it from managing the economy like any other central bank in the world. For example, look at the case of Pakistan which is borrowing 7.5B to stabilise its currency. Zimbabwe can not stabilise its currency like Pakistan by borrowing from the IMF because the US would oppose that. If the currency (Zim dollar) is unstable the dollar will devalue, which causes all imports to sky-rocket, which causes inflation and a thriving black market, which further causes the dollar to devalue, so its a vicious cycle. Its like a nuclear reaction out of control. Lets also not forget that loans from IMF are not ‘aid’ as such because they are loans. The global economy as it is was created by IMF in such a way that poor countries and developing countries open their markets without fear of running out of forex because the IMF will always be there to provide forex loans in times when those poor countries are experiencing low inflows of forex. That facility is called ‘balance of payment support’ and is not available to Zimbabwe but is available to other countries, for example, Pakistan.

So, the point I am making in simple terms is that the sanctions written in black and white are targeted at ruining the economy. Who suffers when there is inflation and devaluation? Ordinary people of course because they can not steal money from the Reserve Bank like Bob and Gono.

Also note that failure of big parastatals like Zisco Steel, MMCZ and Agribank, which are under sanctions, hurts the thousands of employees who work for those companies and other companies that depend on those companies. There are not many big companies in Zimbabwe. Take Zisco Steel, for example. Zisco is the only company that manufactures steel in Zimbabwe, so its failure will affect every other company that uses steel as a raw material. For example, construction and informal traders who manufacture window frames, steel gates etc.

I support MDC and I want Tsvangirai to be President instead of Bob. But, I carry out my own researches in order to find the truth. I wish every Zimbabwean could do the same. Read vana veZimbabwe. Kusaziva Kufa!

It would be to get a response from Eddie Cross.