Several analysts have noted that China is leveraging the global financial crisis to increase its economic clout — for example, by going on a commodities “shopping spree,” contributing $40 billion to the International Monetary Fund at the G-20 summit, and pushing for a greater voice in reforming international economic institutions. Recent developments, however, suggest that it is going further. China is using the crisis to step back and consider how it can rise in a more sustainable manner. That move is borne not only of its desire to be a world power, but also of its recognition that its strategy [...]
There is no doubt that Zimbabwe needs financial help to revive itseconomy and social services. It is also indisputable that the SouthernAfrica Development Community (SADC) is the best-positioned organizationto spearhead this effort. An extraordinary summit of SADCleaders last month pledged to support Zimbabwe in implementing ashort-term emergency recovery plan, with promises of “budget support,lines of credit, joint ventures and toll manufacturing.” But while theregional group’s ambition to raise $10 billion for Zimbabwe is noble,its approach is bound to fail. A figure like $10 billion mightnot sound like much to Western observers. But in Africa, that amountrepresents the annual budget of [...]
JOHANNESBURG, South Africa — Zimbabwe’s national unity government faces imminent collapse, due to its failure to get critical financial aid from the international community. Experts have now warned that the government might soon fail to pay its workers, with the potential for serious civil unrest as a result. Zimbabwe needs at least $8.5 billion in financial aid in order to reconstruct its economy. But its appeals have so far drawn blanks due to donors’ skepticism over President Robert Mugabe’s sincerity in working with the opposition. Even the regional Southern African Development Community (SADC) — which brokered the accord establishing the [...]
