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Sunday, April 14, 2019

Financial problem in a country or organization of your choice Essay Example for Free

Financial problem in a verdant or memorial tablet of your preference EssayDiscuss the causes of a financial problem in a boorish or organization of your choice and suggest some solutions. Specify the problem and the City/Country and relate to a specific study. Zimbabwe is an agricultural based economy previously known as the net-basket of Southern Africa. In the past decade, the country experienced a drastic economic disintegration due to wide range of factors including unconstitutional take down redistribution, health, decline in foreign investment funds and hyperinflation. The Zimbabwean economy is strongly intertwined with politics therefore the political instability subsequently offset the economy. In 2000, the government embarked on the land reform programme which removed white technical farmers from arable lands so that it could be redistributed among black farmers. The experienced farmers were replaced by loosely black subsistence ones, with no farming knowledge , equipment and capital and therefore could non produce at a commercial scale.There was no agricultural export, meaning there was a loss of foreign currency macrocosm injected into the economy on a regular basis. This marked the beginning of economic downfall. Richardson (2004307). The failure of the agricultural vault of heaven which is the backbone of the economy led to the economic crisis. This meant that the government could not generate enough revenue to defend its infrastructures such as the health sector. Health conditions are directly related to the poor economy. Sick workers were not able to work as much or as productively as healthy ones. craunch markets were less(prenominal) efficient and the market was not able to produce as much. Consequently, the economy produced far less per-worker than a similar healthy economy. This was evident in Zimbabwe by the low participation rate that at just over 35 %, as opposed to 51.08 % in the U.S. or 51.97 % in Japan. Richardson (20 04289).Another change factor was that foreign investors also fled, due to insecurities and the government policies dictating that 51% ownership of their businesses should be locally owned. immaterial direct investment fell to zero by 2001, and theWorld Banks risk bonus on investment in Zimbabwe shot up from 4 % to 20 % that year as well. hummock (2003 109). Furthermore, the Zimbabwean economy was brought down by the illegal sanctions (an order that is given to force a country to obey international laws by limiting or stopping trade with it. Merriam-Webster dictionary 2012198) imposed by the American and European superpowers. This meant that no trade was to be done with Zimbabwe. There was a sudden finale of foreign currency and investment influx to the country.The U.S. and Britain have partially withheld financial support for Zimbabwe and there would be no access to the International Monetary Fund (IMF) because they could not pay their debt and the prevailing hyperinflationary conditions. Hill (2003 102). The causes of Zimbabwes financial problem can be mitigated by first achieving a political breakthrough that will depoliticize the economy. Then, land should be re-redistributed among experienced commercial farmers and train the less experienced ones to ensure a more sustainable output. There must also be a liberalisation of foreign investment regulations to attract the foreign investors. In conclusion, these suggested solutions will help to rebuild the economy and restore Zimbabwe as the bread basket of Southern Africa.ReferencesRichardson, C,J. 2004. The Collapse of Zimbabwe in the Wake of the 20002003 Land Reforms. New York Edwin MellenHill, G. 2003. The Battle for Zimbabwe. Cape township Zebra

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