Informal Economy

Where 10,000-Dollar Bills Mean Nothing

Topics: Informal Economy
Countries: Zimbabwe
Here's 60 million Zim Dollars, roughly the equivalent of US $400 (August 2007). Photo: <a href="http://www.flickr.com/photos/grahamking/1015478118/">GrahamKing (flickr)</a>
Here's 60 million Zim Dollars, roughly the equivalent of US $400 (August 2007). Photo: GrahamKing (flickr)

Imagine a place where you would rather use a $10,000 bill to light a fire than actually try to purchase goods.

Today, The Washington Post provides an excellent look at the Black Market in Zimbabwe, a country where 80 percent of the population lives in poverty. The article puts a very real face on the black market industry as Craig Timberg follows a trader around for the day.

The economy began its free fall when landless black peasants invaded white-owned farms in 2000 with the support of Mugabe, who said the redistribution would undo colonial inequities. The often violent process decimated the country's most crucial industry and biggest earner of foreign exchange, triggering hyperinflation that has rarely paused on its staggering ascent.

Today, it's not unusual to see a wadded-up 10,000-dollar bill lying on Harare's filthy sidewalks. Though officially worth about 33 cents in U.S. currency, the real value is about one-tenth of a penny.


Breaking News

Namibia: Kavango Communities Get Natural With It

All Africa - Fri, 05/09/2008 - 04:01
THE GOSPEL of sustainable use of Namibia's natural resources is increasingly being preached in many parts of the country.

Kenya's cabinet learns the ropes

BBC News - Fri, 05/09/2008 - 04:37
Kenya's power-sharing cabinet meets for the first time for former rivals to learn how to work as a team.

Burma rejects need for foreign aid workers, UN blasts regime

Times Online - Fri, 05/09/2008 - 00:11
Eyewitness report from disaster-struck region

Burma shuns foreign aid workers

BBC News - Fri, 05/09/2008 - 03:55
Burma wants aid but is "not ready" for foreign experts, its foreign ministry says, as fears grow for cyclone survivors.

The future of social networking: mobile phones

Times Online - Thu, 05/08/2008 - 16:00
Picture this: a young woman goes to a party. She doesn't know anyone but it's fine because she has her mobile with her. A few clicks and she accesses the profiles of a dozen people at the party, including their pictures. She's in luck: two of them turn out to be friends of friends. She messages them and they start to chat.

Recent comments

Countries

An initiative of Mercy Corps
“You must be the change
you wish to see in the world”
Mahatma Gandhi
Learn more about Mercy Corps >

Efficiency

Over the last five years, more than 89% of Mercy Corps' resources have been allocated directly to programs

Excellence

Mercy Corps is a Charity Navigator 4-star charity.

Click to view our rating from America's premier charity evaluator.

High Value

Every dollar you donate to Mercy Corps helps us secure $20.89 in donated food and other critical supplies.

Mercy Corps — Dept. W — 3015 SW First Ave — Portland, OR 97201
All original content Copyright © 2008 Mercy Corps. Quoted and linked content is property of the creator(s). Mercy Corps will not sell, rent or trade your personal information.