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(STICKY) (NEWZIMBABWE) EU disguises economic sanctions impact: WikiLeaks

COMMENT - The Zimbabwean economy was not sunk by land redistribution in 2000, it was torpedoed by economic sanctions through ZDERA in 2002. That is the year all the economic damage is shown in the macro-economic data. For a decade, the UK, US and MDC have been lying high and low about the existence of economic sanctions, to they could 'hide' their effects on the Zimbabwean economy and people and 'blame Mugabe'. This is part of that process. See more here. They tried to blame hyperinflation on the racist idea that 'Africans can't farm', even though never in economic history has hyperinflation resulted from land reform. Or from anything other than financial manipulation (like Weimar Germany letting go of the gold standard in 1914, fighting a 160 billion gold mark war - WWI - and then being forced to pay $132 billion in restitution mainly to France. That is what caused hyperinflation in the Weimar Republic. Hyperinflation in Zimbabwe was caused by the credit freeze the Zimbabwean government was put under overnight through ZDERA (section 4C - Multilateral Financing Restriction) passing in December 2001. And now the cat is out of the bag.

EU disguises economic sanctions impact: WikiLeaks
by Staff Reporter
01/02/2011 00:00:00

THE European Union considered "creative" means of presenting sanctions against Zimbabwe to hide their full economic impact, according to a confindential United States State Department cable released by WikiLeaks.

The cable shows that under a sanctions plan code named ‘reftel b’, the EU considered imposing a complete investment ban on Zimbabwe. But the proposal came unstuck when it was realised that British and American companies with operations in the country would be affected.

“The United Kingdom will push for further measures, including an investment ban, to be enacted in September (2008),” the US embassy cable read.

“However, the remaining foreign investments in Zimbabwe are British and American, and pursuing an investment ban is difficult.”

The Dutch government then proposed what they described as creativity in implementing the sanctions which, it was hoped, would help disguise their debilitating economic impact.

“For example, governments could use ‘moral suasion’ rather than an investment ban, with press statements such as ‘it’s inconceivable to do business in Zimbabwe’.”

“Tesco, UK, has stopped buying from Zimbabwe, and Shell is also considering a sale of assets in Zimbabwe,” the cable added.

Western countries have always claimed that the sanctions do not affect the majority of Zimbabweans and only target individuals accused of rights abuses and electoral fraud.

However, the Zimbabwe government blames the sanctions for the country’s near-economic collapse over the last decade.

President Robert Mugabe claims the measures are part of wider plans by the West to force him out of office.

Officials insist the country’s economy cannot recover unless the sanctions are removed.

“Zimbabwe’s full recovery and return to the path of lasting prosperity continues to be heavily constrained by the debilitating effects of the illegal sanctions being imposed on the country,” central bank governor, Gideon Gono, said recently.

“The Reserve Bank continues to urge those responsible for the imposition of the sanctions to please free us from this unjust handicap which is negatively affecting not just the alleged targeted few, but the majority of vulnerable Zimbabweans.”

Labels: EU, HYPOCRISY, LYING, MDC, SANCTIONS, WIKILEAKS, ZDERA

posted by MrK @ 10:30 AM