Financial problem in a country or organization of your choice Essay

Discuss the causes of a financial riddle in a country or organization of your choice and pop the question some solutions. Specify the problem and the City/Country and relate to a particular study. Zimbabwe is an agricultural based parsimoniousness previously known as the bread-basket of Southern Africa. In the past decade, the country go through a forceful economic disintegration due to wide range of factors including unconstitutional basis redistribution, health, decline in foreign investment and hyperinflation. The Zimbabwean economy is powerfully intertwined with politics hence the political instability subsequently offset the economy. In 2000, the g overnment embarked on the land reform programme which removed albumen commercial 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 know directge, equipment and capital and thitherfore could not produce at a co mmercial scale.There was no agricultural export, meaning there was a loss of foreign bullion being injected into the economy on a regular basis. This marked the kickoff of economic downfall. Richardson (2004307). The failure of the agricultural sector which is the backbone of the economy led to the economic crisis. This meant that the government could not generate enough revenue to reserve its infrastructures such as the health sector. Health conditions are directly colligate to the poor economy. Sick workers were not able to work as ofttimes or as productively as healthy ones. Labour markets were slight efficient and the market was not able to produce as much. Consequently, the economy produced far slight per-worker than a similar healthy economy. This was evident in Zimbabwe by the low participation rate that at just over 35 %, as opposed to 51.08 % in the U.S. or 51.97 % in Japan. Richardson (2004289). other contributing factor was that 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 unrelenting to zero by 2001, and theWorld Banks risk bounteousness on investment in Zimbabwe shot up from 4 % to 20 % that year as well. Hill (2003 109). Furthermore, the Zimbabwean economy was brought down by the illegal sanctions (an order that is given to force a country to follow international laws by limiting or stopping trade with it. Merriam-Webster mental lexicon 2012198) imposed by the Ameri trick and European superpowers. This meant that no trade was to be done with Zimbabwe. There was a sudden death of foreign bills and investment influx to the country.The U.S. and Britain have partially withheld financial support for Zimbabwe and there would be no access 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 train the less experienced ones to ensure a more sustainable output. There moldiness also be a liberalisation of foreign investment regulations to pull up the foreign investors. In conclusion, these suggested solutions will help to rebuild the economy and define Zimbabwe as the bread basket of Southern Africa.ReferencesRichardson, C,J. 2004. The Collapse of Zimbabwe in the light up of the 20002003 Land Reforms. New York Edwin MellenHill, G. 2003. The Battle for Zimbabwe. Cape Town Zebra