This collapse of industry has been a knock-on effect of the collapse of agriculture: as agriculture diminished, so did consumer spending on industrial outputs; as some industries consequently produced less, the demand by these industries on others diminished. Run away inflation combined with unviable price controls, poor fiscal policies and an artificial foreign exchange rate have also crippled industry. Government statements of intention to seize industries and a few ad hoc “invasions” of companies have reduced confidence of potential investors. The IMF closed its Harare office in September 2004, after releasing a report that noted that the fall in Zimbabwe’s GDP of 30% in the last five years, with a further fall of 4,5% forecast for 2004, was the result of “inadequate economic policies".40 It noted that "disorderly implementation" of the land reform programme has "sharply reduced" agricultural production. According to the IMF, the economic decline has had "dire social consequences"; unemployment is high and increasing, social indicators have deteriorated and the HIV/Aids pandemic remains "largely unchecked". "Severe food shortages" have caused a "vicious cycle of malnourishment and disease". The IMF cites issues of governance, the rule of law, human rights and property rights that have "severely damaged confidence, discouraged investment and promoted capital flight and emigration". Citing the "disruptive effects" of land reform, the IMF quotes an official report that found that actual resettlement of 134 452 families and 6,4m ha fell far short of government's claimed 350 000 families and 11m ha. Independent reports estimate unemployed farm workers and their families at more than 1m people, or about 9% of the population.41 The government has recently expressed an intention to indigenise 50% of all mining ventures, sending insecurity through this sector. The President of the Mining Association has warned that statements from government are jeopardising six projects that would involve substantial investment and job creation. Aquarius Platinum, a major investor in Zimbabwe has warned shareholders of the intended government grab. It is unlikely that major companies will continue with investment in new projects, in the wake of the land invasions, and in the face of looming nationalisation or forced giving of shares to indigenous Zimbabweans.42 The government intends to force through parliament before the end of 2004, an NGO Act that will force all NGOs to register with a government council. This Act bans foreign funding for NGOs involved in human rights and governance, and forbids NGOs with any foreigner on their Board from registering. Apart from the serious implications of this for democracy, around 10,000 jobs in the NGO sector hang in the balance. It is usual in the definition of who should be given refugee status, to exclude those considered “economic refugees”. Yet the evidence in Zimbabwe is so glaring that the demise of the economy has been wilfully induced by the ruling party, which has knowingly destroyed a functioning nation in order to extend its own reign of power, that the international community should be considering recognising as political refugees those who now flood out of Zimbabwe into the region for fear of not being able to feed, clothe and educate their children. Around a million farm workers and their families have been deliberately deprived of their livelihoods, their homes and their entire infrastructure. Hundreds of thousands of industrial workers and their 40 The Financial Mail, (SA), IMF’s strange mouthings hit Bob, 1 October 2004, for all references to the IMF report in this paragraph. 41 Ibid. 42 IDEX (USA), Zimbabwe aiming for 50% black ownership of mines, 4 October 2004; Mineweb, (SA), Aquarius warns of Zim mine grab, 6 October 2004. 28

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