Tyler Durden writes: While the developed world is focusing on the rapidly deteriorating developments in the Crimean, China, which has kept a very low profile on the Ukraine situation aside from the token diplomatic statement, is taking advantage of this latest distraction to do what it does best: quietly take over the global periphery while nobody is looking.
Over two years ago we reported that none other than Zimbabwe – best known in recent history for banknotes with many zeros in them – was bashing the US currency, and had alligned itself with the Chinese Yuan. This culminated last month with the announcement by Zimbabwe’s central bank that it would accept the Chinese yuan and three other Asian currencies as legal tender as economic relations have improved in recent years. “Trade and investment ties between Zimbabwe, China, India, Japan and Australia have grown appreciably,” said Charity Dhliwayo, acting governor of the Reserve Bank of Zimbabwe.
Exporters and the public can now open accounts in yuans, Australian dollars, Indian rupees and Japanese yen, Dhliwayo said. Zimbabwe abandoned its worthless currency in 2009.
It accepts the US dollar and the South African rand as the main legal tender. Their use has helped to stabilise the economy after world-record inflation threw it into a tailspin.
Independent economist Chris Mugaga said the introduction of the Asian currencies would not make a huge difference to Zimbabwe’s struggling economy.
“It is Zimbabwe’s Look East Policy, which has forced this, and nothing else,” he said.
And now, as a result of the “Look East Policy”, we learn that China has just achieved what every ascendent superpower in preparation for “gunboat diplomacy” mode needs: a key strategic airforce base. [Continue reading...]
Robert I. Rotberg writes:
President Robert Gabriel Mugabe is Zimbabwe’s curse. In his three decades in power, Mugabe has traded the country’s economic promise for withering decline. He’s turned what was once the breadbasket of the region into a deathtrap for its own citizens. He has crushed the opposition, cleared slums with bulldozers, ignored a devastating cholera outbreak, and chased millions of desperate migrants over the border into South Africa. His passing, when it comes, may seem like a blessing.
Yet when the ailing, 86-year-old Mugabe inevitably leaves office, by fair means or foul, more trouble is in store for the nation that he has singlehandedly destroyed. And hardly anyone is fully prepared for that game-changing moment — not Zimbabwe’s opposition; not neighboring South Africa; not Western embassies or regional multilateral organizations. No one has a workable contingency plan. And with everyone likely to be caught flat-footed by Mugabe’s demise, the president’s cronies are likely to attempt to seize power and install a regime as bad as or worse than the one left behind.
For now, Mugabe is keeping a tight grip on the Zimbabwean state. After losing a presidential election in 2008, he agreed — under heavy international pressure — to share power with the vote winner, opposition leader Morgan Tsvangirai, and the two adversaries were forced into an unhappy marriage in 2009. Although Tsvangirai was made the prime minister, Mugabe continues to run the country according to his own whims. Defying the 2009 agreement, he appoints provincial governors, judges, ambassadors, an attorney general, a central bank governor, and military generals without so much as a nod in Tsvangirai’s direction. In fact, he ignores Tsvangirai most of the time, and blames the prime minister for Zimbabwe’s ongoing economic and social failings.