Financial problem in a country or organization of your choice Essay

Discuss the causes of a monetary problem in a rural or organization of your choice and arouse some solutions. Specify the problem and the city/Country and relate to a concomitant study. Zimbabwe is an agricultural based economy antecedently known as the cabbage-basket of Southern Africa. In the past decade, the state experience a drastic economical disintegration ascribable(p) to wide range of factors including unconstitutional get redistribution, health, decline in inappropriate investment funds and hyperinflation. The Zimbabwean economy is strongly intertwined with g everywherenment therefore the political instability after offset the economy. In 2000, the government embarked on the estate reform programme which outside white commercial-grade farmers from arable lands so that it could be redistributed among black farmers. The experienced farmers were replaced by mostly black subsistence ones, with no farming knowledge, equipment and capital and therefore could n on uprise at a commercial scale.There was no agricultural export, importee there was a loss of outside(prenominal) currency being injected into the economy on a regular basis. This marked the stock of economic downfall. Richardson (2004307). The failure of the agricultural sphere of influence which is the backbone of the economy led to the economic crisis. This meant that the government could not generate rich revenue to sustain its infrastructures such as the health sector. Health conditions are immediately related to the poor economy. Sick workers were not able to work as a great deal or as productively as healthy ones. Labour markets were slight competent 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 unmixed in Zimbabwe by the low involution rate that at just over 35 %, as opposed to 51.08 % in the U.S. or 51.97 % in Japan. Richardson (2004289).Another alter factor was th at foreign investors also fled, due to insecurities and the government policies dictating that 51% ownership of their businesses should be locally owned. Foreign direct investment fell to zero by 2001, and the populace Banks risk agio on investment in Zimbabwe thrust up from 4 % to 20 % that family as well. Hill (2003 109). Furthermore, the Zimbabwean economy was brought down by the illegal sanctions (an allege that is given to force a country to obey international laws by adjustment or stopping trade with it. Merriam-Webster vocabulary 2012198) imposed by the American and European superpowers. This meant that no trade was to be through with(p) with Zimbabwe. There was a sudden finish of foreign currency and investment influx to the country.The U.S. and Britain have partially withheld financial deem for Zimbabwe and there would be no introduction 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 deal the less experienced ones to ensure a more sustainable output. There essential also be a loosening of foreign investment regulations to attract the foreign investors. In conclusion, these suggested solutions will help to make 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 troth for Zimbabwe. Cape Town Zebra