The Wardman Wire

Robert Mugabe’s greatest achievement may well be to create a nation of heavily muscled Maths geniuses.

Nowhere else in the world does your average 6 or 8 year old sent out on an errand to buy a loaf of bread have to deal with numbers in the millions tens of millions without parental help, while carrying currency around by the bucketload.

This note is 10 million Zimbabwe dollars. As you can see from the date, it is now obsolete because the numbers are too small.

Use your Loaf. Remember.

Let’s go backwards through history to explain the Mathematical Genuises and look at the price of bread - remember that this staple is price-controlled by the government.

July 2008: Loaf of bread is one third of a teacher’s salary. 2,200,200% inflation.

From the Sidney Morning Herald:

ZIMBABWE’S official inflation rate has reached 2.2 million per cent, driving the cost of a loaf of bread to about a third of a teacher’s monthly salary.

Independent economists dismissed the Government’s figure, saying the true rate was several times higher and rising faster than ever.

On Wednesday the governor of the central bank, Gideon Gono, announced a near 13-fold increase since the last time he released an inflation rate, in February, when it was put at 165,000 per cent.

March 2008: Loaf of Bread is 10 million Zimbabwe dollars. 100,000% inflation.

In March 2008 this note would have bought you a loaf of bread in Zimbabwe. From the Christian Science Monitor:

Zimbabwe has the world’s highest inflation rate at 100,000 percent. A loaf of bread now costs 10 million Zimbabwe dollars.

Other food items were more expensive. In the first week of March 2008 a sack of potatoes (14kg) was $90,000,000. By the 25th that was $160,000,000.

September 2006: Loaf of Bread is $200 to $330 Zimbabwe dollars. Inflation 1200%.

On 19 September 2006, the BBC reported that businessmen were being arrested for charging $330 Zimbabwe dollars for a loaf, rather than the government controlled price of $200:

The executives, one from a major Zimbabwean bread-maker, were arrested at the weekend.

Bread prices rose last week to 330 Zimbabwe dollars (US$1.32) a loaf, while the official price remains Z$200.

Three more top businessmen have also been arrested on similar charges, reports the state-owned Herald newspaper.

“We have charged them with increasing prices without authority from the Ministry of Industry and International Trade and we expect them to appear in court tomorrow,” Chief Insp Phiri said.

The Herald also reports that some shops have reversed their prices rises.

Zimbabwe’s annual inflation is running at 1,200% - the highest rate in the world.

April 2002: Complaints as Loaf of Bread increases from Z$ 48.50 to Z$ 60.44.

From Africa Online:

Consumers in the Zimbabwean capital Harare yesterday said they were against the price increases for bread and cooking oil as they will make life unbearable for most Zimbabweans. But the Consumer Council of Zimbabwe (CCZ), which represents the consumers, said it welcomed the price increases.

The Consumer Council welcomed the price increase as it was consulted by the government in advance. The government increased the retail price of a loaf of bread from Zimbabwe dollar (Z$) 48.50 to Z$ 60.44 from yesterday (from 1 euro to 1.22 euro).

The wholesale price of a loaf of bread was increased from Z$ 44 (0.89 euro) to Z$ 54.95 (1.11 euro). The retail price of a bottle of cooking oil is now pegged at Z$ 198.54 (4 euro), up from Z$ 141.50 (2.86 euro).

And from the same article:

The governing party of President Robert Mugabe, Zanu-PF, promised voters during the campaign period for the presidential election in March that the government would not increase prices of basic commodities if he was re-elected.

Report from Zim two weeks ago

“Where are all your goods?” I asked one shop attendant.

“There is nothing,” he said, “the suppliers say they have nothing to deliver.”

I stood while he weighed the butternut squash I had chosen and exclaimed in shock at the 30 billion dollar price sticker he fixed to the vegetable.

“Can I show you something?” the man said and before I could answer he took his most recent pay slip out of his pocket. For an entire month the shop assistant had earned just 28 billion dollars - not even enough to buy one single butternut squash. Eight hours a day, five and half days a week and his entire salary was not enough to provide even one single meal. He told me he had a wife and a child to support and said with remorse and shame in his voice: “I am failing them and if I do not jump the border to look for work this month then they are surely going to die.”

A Nation of Weight-Lifting Champions?

Surely the reason is obvious. Here is a man going shopping for groceries in March:

(Photo credit: Tsvangirayi Mukwazhi / AP)

And here’s a ready reckoner (via):

ZcTV Economic Report

While we are on economics, the Tea Chicken is back with some economics news, in Zimbabwe’s satirical answer to “Have I Got News for You”. I recommend a cup of tea as the video is 10 minutes and quite energetic.