Zimbabwe’s gross domestic product drastically droppedduring Mugabe’s reign. Thegross domestic product of Zimbabwe dropped due to harming the environment in anattempt to raise the gross domestic product, the government being irresponsiblewith their money and debt issue, and the small glimmer of hope to raise their grossdomestic product rests in another country’s plan. Thereare evident environmental costs of natural resource depletion through landexhaustion.
Land was also seized from farmers without compensation, which wasunconstitutional but ultimately ignored. This affects the net exports becauseinstead of selling maize to other countries, they now have to import it fromother countries and then it does not count towards Zimbabwe’s gross domesticproduct, but to the country where the maize originates from. TheZimbabwean government constantly borrowing from other countries in order to keeptheir citizens alive increased the debt levels immensely. On top of that, theymass printed money and caused the “second most severe case of hyperinflation inhistory” (Hanke).
This meant that every day the dollar amount was nearlydoubling, causing the government to eliminate the Zimbabwean dollar and take upthe Unites States’ currency instead. Using the American dollar prevented thecountry from yet another inflation issue. However, old habits die hard, andmore laws were broken, leading to the production of a new Zimbabwean dollar,called Zim dollars, and a new wave of hyperinflation for the poor country.With the end of Mugabe’s ruling comes a new hope ofsaving Zimbabwe from financial ruin.Focuson consumption by creating an easier way to do business.
Theeasier it is to create a business, the more people that will create businessesand create better incomes. In turn, this will increase customer consumption andraise the gross domestic product of Zimbabwe. However, the issue of inflationand illegal land takeovers may still be a factor that can prevent growth since Mr.Mnangagwa has the possibility of continuing this terrible path due to him havingbenefitted from the previous way of ruling the country.
In order for him toprove that he is listening to the unhappy customers under his ruling, he could setthe country on that path that Singapore’s first prime minister followed: “stablemoney, no foreign aid, first world competitiveness and the protection ofprivate property and the public’s safety” (Hanke).