Business / Economy
Zimbabwe 'declared' failed state by US researchers
22 Jun 2012 at 16:36hrs | Views
Zimbabwe is living to the reputation of African countries "blessed" with huge diamond deposits yet their citizens remain poor.
Despite claiming to hold the world's biggest diamond deposits, Zimbabwe is one of the most failed states, at least according to Foreign Policy magazine, a United States-based research and publishing group.
The group put Zimbabwe as the fifth most failed state in the world for 2012, according to its top 10 most failed states index released recently. The non-profit group ranks 177 nations annually for their stability, human flight and abuse, economic decline, security and external intervention measures.
Zimbabwe claims Marange diamond deposits account for more than 25 percent of world diamond reserves and could last for 21 years at full exploitation. Yet the country has failed to back 18 percent of its cash budget from diamond proceeds as planned due to a lack of transparency and accountability on Marange mining activities. This has left social infrastructure such as public hospitals and schools that are in dire need of funding reeling.
Finance minister Tendai Biti had planned to use $600 million from diamond proceeds to support this year's $4 billion budget but says the money has not been forthcoming. Biti says the biggest miner in Marange, Anjin Investments, which is a joint venture between the Chinese government and Zimbabwe's government, has failed to remit a cent despite selling huge stockpiles. Prime Minister Morgan Tsvangirai told Parliament yesterday that treasury had only received $25 million from other firms mining there.
African countries rich in natural resources but whose people live in poverty include Democratic Republic of Congo and Ivory Coast. The Foreign Policy magazine ranked war-ravaged Somalia last.
Despite claiming to hold the world's biggest diamond deposits, Zimbabwe is one of the most failed states, at least according to Foreign Policy magazine, a United States-based research and publishing group.
The group put Zimbabwe as the fifth most failed state in the world for 2012, according to its top 10 most failed states index released recently. The non-profit group ranks 177 nations annually for their stability, human flight and abuse, economic decline, security and external intervention measures.
Finance minister Tendai Biti had planned to use $600 million from diamond proceeds to support this year's $4 billion budget but says the money has not been forthcoming. Biti says the biggest miner in Marange, Anjin Investments, which is a joint venture between the Chinese government and Zimbabwe's government, has failed to remit a cent despite selling huge stockpiles. Prime Minister Morgan Tsvangirai told Parliament yesterday that treasury had only received $25 million from other firms mining there.
African countries rich in natural resources but whose people live in poverty include Democratic Republic of Congo and Ivory Coast. The Foreign Policy magazine ranked war-ravaged Somalia last.
Source - dailynews
