Mugabe to nationlize foreign firms in response to sanctions
posted at 11:00 am on July 20, 2008 by Ed Morrissey
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Robert Mugabe continues his efforts to render Zimbabwe destitute rather than leave office willingly after losing an election in March. In response to sanctions from Western nations — unfortunately not joined by the UN — Mugabe today threatened to seize firms with significant Western investments and redistribute them to his cronies:
Zimbabwe will transfer ownership of all foreign-owned firms that support Western sanctions against President Robert Mugabe’s government to locals and investors from “friendly” countries, a state newspaper reported on Sunday.
The southern African state is struggling with an economic crisis many blame on Mugabe’s policies, which has left it with an inflation rate of over 2.2 million percent and chronic shortages of food and other basic needs.
Mugabe’s government blames the crisis on sabotage by enemies angry over his seizures of white-owned farms for blacks, and has followed up that policy with another controversial law seeking to transfer majority ownership of foreign-owned firms to locals.
The Sunday Mail said Zimbabwe had begun auditing the ownership of Western firms in the country as part of a black empowerment drive “and to counter the possible withdrawal of investment under sanctions imposed and proposed by Britain and the U.S.”
This will mainly affect British investors. According to Mugabe’s audit, almost 500 firms have British investors, and of those almost 100 are wholly owned by Brits. An additional 353 firms have investors from other European nations. Mugabe wants investors from “friendly” nations to apply for the assets — presumably buying them from Mugabe after a forcible seizure.
It goes without saying that Mugabe will make this unpalatable for any sensible investor. Even if someone found themselves tempted by the fire sale Mugabe will offer, putting money into an economy currently producing an inflation rate of 2.2 million percent practically qualifies said investor for a straitjacket and a padded room. Besides, Mugabe will retain actual control of the assets; any investor will only be putting their money into Mugabe’s pocket for rent. Mugabe will undoubtedly repeat these “offers” as often as he needs hard currency.
Of course, the people most hurt by this action will be the Zimbabweans. Their economy desperately needs capital investments and a sane economic policy. Mugabe’s seizure of foreign assets will keep both from being implemented, and it will have the same effect on industry as his seizure of farms had on agriculture. Mugabe will keep killing his people slowly as well as quickly, and the lack of action at the UN and in Africa disgraces both equally.
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Cutting the west’s nose to spite his people’s face.
Grafted on July 20, 2008 at 11:09 AM
Kinda like Saddam’s troops burning Kuwait on the way out.
jgapinoy on July 20, 2008 at 11:15 AM
Why would any western or any other firm for that matter even be in the stinking failed cesspool that Rhodesia has been turned into?
G-man on July 20, 2008 at 11:18 AM
The Marxist end-game scenario.
It would be interesting if it was happening in some lab someplace.
But real people are getting hammered illegally so Big Bob can keep his throne. This idea will pay off as the farm seizures did. But Bob isn’t missing any meals and none of his “peers”, for blatant reasons, are telling him “no”.
Too bad they haven’t a seashore so Bob could take a throne there and order the tides away.
Harry Schell on July 20, 2008 at 11:19 AM
Calling the developments “interesting,” and “useful,” Nancy Pelosi (D) has instructed her aides to look into the potential value of such an approach for the next legislative session.
jeff_from_mpls on July 20, 2008 at 11:20 AM
There are movies where the mad scientist attempts to destroy everything before he is stopped.
Who is going to stop this madman Mugabe? Who? Then the academics and left-wing pinkos tell us America is imperialist and this and that, all the while real horrors are taking place of which the left does nothing, except increase suffering.
What a world.
Richard Romano on July 20, 2008 at 11:33 AM
Aren’t there any sharpshooters over there?
Mommynator on July 20, 2008 at 11:34 AM
Gee, looks like it is time for the U.N. to send Mugabe another letter.
That should have him shaking in his boots.
RIGHT!
pilamaye on July 20, 2008 at 11:38 AM
the scary thing is how many liberals agree not necessarily with hte action or the result but hte justification of Mugabe’s actions and yearn for something similar
Defector01 on July 20, 2008 at 11:51 AM
Oh and btw Africa is rapidly losing all sympathy from me as a ‘pet cause’.
Defector01 on July 20, 2008 at 11:51 AM
Mr. Morrissey
I feel compelled to apologize profusely for my comments of 11:43. The post to which my comment was directed is not the post to which those comments were appended. So much so, that more than being confused, I find myself a bit frightened.
I misread your post, and in my confusion repeated what you had written.
I had stumbled into various news reports on various web sites, and my original reading of your post failed reading comprehension so badly that I am embarrassed.
Please favor me with deletion of all my posts on this topic.
Sincere regards
[No apologies necessary, and earlier posts deleted at your request -- Ed]
rockhauler on July 20, 2008 at 12:12 PM
Well, let’s follow the $ as the old saying goes…Russia and China voted against sanctions on Zimbabwe at the UN, so my guess is they’ll be paying the “rent” to Mugabe. Both are interested in taking over the African continent.
And America is the imperialist/facist?
JustTruth101 on July 20, 2008 at 12:25 PM
Africa is a hell hole, by it’s own choice.
Throwing money to the UN is like throwing money down a rat hole.
It is full of tin hat dictators, murder and mayhem reign supreme!
I have seen it and was happy to leave.
Africa is not about rasicm. It is genocide on a huge scale.
old trooper on July 20, 2008 at 12:25 PM
Maxine Waters,..please call your office. There is good news.
a capella on July 20, 2008 at 12:36 PM
Having been granted freedom by its former colonial masters, Africa goes in search of new patrons to be its new master. First the USSR, now China.
njcommuter on July 20, 2008 at 12:48 PM
But … but … how could that be? Mugabe’s black … and a black African at that ….
How could anything this saint does in those oppressed, pristine lands be wrong ?
Are you sure this isn’t just another Rove / Murdoch production ?
Blacksheep on July 20, 2008 at 12:51 PM
Yeah, how dare the world be angry by blatant racism sponsored by governments that results in massive food shortages and starvation of the entire population. The nerve of some people. . . even though those ‘enemies’ have not ’sabotaged’ his incompetence. Mugabe has done that himself.
ThackerAgency on July 20, 2008 at 12:57 PM
Marxism is good.
Socialism is just an intermediary phase.
They’re coming here too. Get ready.
Every populace deserves its leaders.
Entelechy on July 20, 2008 at 12:58 PM
Nationlize?
NCC on July 20, 2008 at 12:58 PM
One 7.62mm FMJ would cure what ails Zimbabwe.
BallisticBob on July 20, 2008 at 1:15 PM
This would be a good object lesson for young people about what happens when you ignore personal and economic freedom and impose a Marxist ideology through terrorism and rigged elections. Sadly, academics either will not teach it or will draw the entirely wrong conclusions from it. Soon we will have a sequal in Venezuela under Chavez. That will also be ignored.
It is amazing how the left prefers Che Guevera/Fidel Castro (Cuba), Hugo Chavez (Venzuela) and Mugabe to Uribe of Columbia or the regime of Jose Napolean Duarte in El Salvador. The latter two won democratic elections and implemented market based reforms that raised up the standard of living and reduced government corruption — How awful! The former four had no use for free and fair elections or personal freedom, murdered people and collapsed their countries economies leaving people in poverty — perfect objects for academic lefties to worship and praise.
KW64 on July 20, 2008 at 1:27 PM
I wonder how long it’ll be before Mugabe imitates Idi Amin and has enemies tortured to death before him for entertainment, then eats body parts.
DavePa on July 20, 2008 at 1:48 PM
One of the first things Mugabe did when he came to power was implement gun control. He’s crazy, not stupid.
Socratease on July 20, 2008 at 2:10 PM
I was wondering the same thing.
CP on July 20, 2008 at 2:31 PM
Mugabe is from the Maxine Watters school of managment!
TheSitRep on July 20, 2008 at 2:39 PM
Socratease on July 20, 2008 at 2:52 PM
Its semi-obvious but bears repeating: “friendly” countries in this case = China.
The Dragon Smog will do nothing to stop it, will gladly accept Mugarbages largesse, and the Brits/West will be utterly powerless to respond.
Mike D. on July 20, 2008 at 3:22 PM
I will repeat this until someone takes him out.
Anyone with a passing remnant of a brain stem knew years ago that Mugabe was a fiendish henchman of the first order. The fact now, years later and thousands dead and millions impoverished, I could care less what happens in that part of Africa. In fact if you told me today that last night the entire area disappeared I would continue reading the sports page. I would figure that the good went to heaven and the bad are burning. Either way, it’s better there than here.
Africa for the most part is a godforsaken shit hole run by tribal leaders who pretend to walk on two legs. I repeat what I said years ago, Mugabe should be shot on sight.
Where are the Zimbabwe patriots at home and abroad? How many family members does he have to kill before you take it personally? There have been ample opportunities to whack this piece of shit these last twenty years. Before the current phony outrage at Mugabe’s behavior, he flitted about the world showing up at any number of galas, not to mention being feted at the UN, enjoying the sights and sounds of New York nightlife while spying his next Rolex.
My sympathy well has run dry. If old Rhodesians are not prepared to do anything why should I.
As to South Africans, Mandela, the Rev Tutu et al, they are useless finger pointing race baiting hustlers. These suckers are all about tribe. F’k em.
patrick neid on July 20, 2008 at 3:45 PM
Gotta love that reporter speak. “which many blame on Mugabe’s policies”, eh? It’s constructs like this that convince reporters they’re being objective. Does objectivity dictate here that one must hesitate to state the truth that of course it’s all about Mugabe’s policies? Of course not. Ask any economist or historian what happens when you try to solve your economic problems by printing money.
Splunge on July 20, 2008 at 3:54 PM
I can’t believe there are even any buinesses left for him to nationalize in that cesspool of a country.
dm60462 on July 20, 2008 at 4:08 PM
Africa apparently needs to learn how to bleed, vomit and crawl before it can vomit and crawl.
BL@KBIRD on July 20, 2008 at 4:22 PM
Only among Mugsy’s supporters.
I doubt anybody foreign was dumb enough to invest in MugabeLand without insurance. No matter what the asset, Mugsy and his thugs will be unable to utilize it properly, like the productive farms stolen from white folks and given to Mugsyites. Turned into unproductive weed farms in no time. You want the solution to sub-Saharan Africa’s problems? Euro-American re-colonization, new sensible boundaries drawn up on tribal rather than geophysical lines, intense education and infrastructure building and slow de-colonization with proper transitional to stable governments of the African people’s choosing. It goes without saying that this will require ruthless suppression of religious violence.
GeneSmith on July 20, 2008 at 5:55 PM
In case anyone missed this in the headlines section, Mugabe is making a $100 Billion bill. Any investments will be destroyed by inflation in a matter for weeks —> http://news.scotsman.com/world/100-billion-dollar-notes-for.4306209.jp
Dollayo on July 20, 2008 at 7:00 PM
And not just religious violence. Retribution will become a big problem. So will the rule of warlords, and anger against the people who come to save the victims–they will be blamed for ’stealing’ the wealth and land of the local population by people who somehow imagine that hell under an African is better than paradise under anyone else. There will be short memories, too; as soon as a second generation of children is born (in twenty years or so) they won’t know how bad things were and will be open to propaganda; even a good school system will only be able to hold this off for so long.
njcommuter on July 20, 2008 at 7:06 PM
More investment going into a “black hole??!!”
wepeople on July 20, 2008 at 7:10 PM
He would be shaking if the letter said they were calling Executive Outcomes….
liquidflorian on July 20, 2008 at 7:15 PM
oh yes, its nice to see someone who knows how to get things done in africa
Thats why Tiny Rowland and Lonhro was so successful in Africa….
right4life on July 20, 2008 at 7:29 PM
I’ve known that since the 1980s…but of course he’s just a victim of white racism!!
right4life on July 20, 2008 at 7:32 PM
Maybe the UN can keep Zimbabwe as a political preserve. Maintain the current form of government and bring schoolkids from the other countries in on field trips to show them what happens under the rule of socialism-spewing tyrants brought to power through class- and racial-warfare. They can take a trillion-dollar Zim-bill back as a souvenir.
Socratease on July 20, 2008 at 8:16 PM
All this sounds an awful lot like “whitey’s fault.”
jukin on July 20, 2008 at 8:59 PM
What kind of world does this guy live in where he thinks what he’s doing is rational?
Oh wait, the UN changed the parameters of the real world for him; he’s right at home.
Black Adam on July 21, 2008 at 12:30 AM
When the rest of the world gets its act in order, in, say, 5025 or so, it should be possibly to carve out a section the size of, say, Virginia, set up a DMZ around it, and pacify it. After fifteen years of occupation, a second such zone can be carved out, then another, then another. In another millenium or so we can have Africa as part of the civilized world. (First, we have to fix Haiti.)
Or Africa can get its head out of its s–thole and fix itself.
njcommuter on July 21, 2008 at 2:30 AM
futher reminding us wall how useless the UN is.
MannyT-vA on July 21, 2008 at 7:33 AM
Mugabe is a democrat?
Johan Klaus on July 21, 2008 at 10:27 AM
Nope. Democrats are the useful idiots that people like Mugabe liquidate once they get into power.
Kristopher on July 21, 2008 at 1:44 PM
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