Magic Statistics

I thought of headlining this post "Gono gonzo?", but decided that was too obscure.

The blistering public criticism of Robert Mugabe's economic policies by Zimbabwe Reserve Bank governor Gideon Gono (photo at right) ten days ago means that his days in government are numbered.  It is believed to be the first time a member of Mugabe's inner circle has directly attacked the president.

"We are seeing the beginning of the end for Gono's roadshow," said an official from the pressure group Crisis Coalition of Zimbabwe in Harare this week. The official spoke in his personal capacity and refused to be named, lest his stance be confused with that of the coalition.

"Gono's options are very limited indeed," said the official. "He can either resign or stay on and be fired. Mugabe and his colleagues are concerned with political survival. An economic recovery in the near future, which is very unlikely, would for them be only a bonus."

Mr Gono denounced the price controls as doomed to make a bad situation worse.  Without supply-side incentives to encourage economic production, store shelves would soon be emptied of food and other essential goods.  He also criticised the government for disregarding private property rights and ignoring the importance of foreign investment.

Gono also attacked government spending, the huge budget deficit and corruption, all of which frustrated the battle against inflation. He has long favoured a free exchange rate for the local currency, which is pegged at 250 Zimbabwe dollars, ZWD, to one US dollar. This is against the more realistic black market rate of more than 100,000 ZWD to one US dollar. Gono said government’s unrealistic rate had caused “pricing distortions and instability” in the market.

The bank governor's outspoken and wide-ranging critique of government economic policy has made him a target of hard-line Mugabe partisans in the ruling ZANU PF.  He is now believed to have no supporters in the cabinet or in the party.  His dismissal would appear to be only a matter of time.

Previous related posts:

• Zimbabwe now officially a socialist kleptocracy
• Price controls: A scheme to seize Zimbabwe’s private sector?
• Mass arrests, internal dissension over Zimbabwe’s price rollback

A report by the US State Department estimates that attacks by militant Niger Delta separatists since December 2005 have cost Nigeria over $16 billion in export revenues due to lost oil production.  The losses have resulted from vandalism, kidnappings, and occupation of oil facilities.

The report entitled, "Nigeria Energy Data, Statistics and Analysis - Oil, Gas, Electricity, Coal", stated that militant attacks have had a negative impact on Nigeria's domestic refining capabilities.

Giving instances, it said attacks in February 2006, in the Western Delta region forced the Warrri (125,000bbl/d) and the Kaduna (110,000 bbl/d) refineries to shut down. This was followed by the shut down of two refineries in Port Harcourt in December 2006 due to lack of feedstocks.

The report also says that additions to productive capacity have made up for the losses, so that quantity of oil exports has remained almost unchanged.  If Nigeria could bring all shut-in oil back on stream, its production capacity could be increased from the current 2.45 million bbl/d to three million.

So says Hernando Gomez Bustamante, former cocaine kingpin, now in custody in Colombia.

The most senior Colombian drugs baron now in custody, awaiting extradition to America, has told investigators that Venezuela offers smugglers relative immunity.

"Venezuela is a temple of drugs smuggling," said Hernando Gomez Bustamante, alias "Scratch", who had a $5 million bounty on his head.

Corruption inside Venezuela’s security and police forces has made the country a key transit point for drugs moving from South America to Europe.

"We know that some people very high in the government and military have their fingers in drug pies," said an official from an international law enforcement agency.

Cocaine grown in Colombia is smuggled into neighbouring Venezuela and then sent onwards to West Africa and Europe. There are reports of a new cartel, dubbed the "Cartel of the Suns", after the stars worn by the Venezuelan generals who are thought to be complicit in the trade.

Colombian intelligence learned of the cartel from Feris Farid Dominguez, who was deported from Venezuela in January to face charges of drug trafficking. He told how he met senior figures in President Hugo Chavez's security forces to arrange drug shipments through Venezuela.

President Hugo Chavez angrily denies corruption charges, pointing to arrests and drugs seizures in Venezuela as evidence that he is acting against smuggling.  He also accuses the US of using its Drug Enforcement Administration as a front for military infiltration.

Previous related posts:

• Venezuelans engaged in cold civil war
• Cocaine trade: one of the great evils of our time
• Cocaine-using celebs help destabilise Colombia

Australian aboriginal leader Noel Pearson yesterday praised a reform in welfare rules aimed at encouraging recipient families to take better care of their children.

Parents on welfare will be expected to ensure safe and healthy conditions for children, keep up on their rent payments, and perform some kind of useful work.  If they fail to fulfill their obligations, welfare payments will be diverted to a responsible relative or community member to mange the funds for them.

The program is to be implemented in four Aboriginal communities on Cape York in the far north of Queensland state.

Mr Pearson, who has fought for nine years for reform of what he calls "welfare passivity", said the Government's support for the institute's plan would allow comprehensive reforms to rebuild social norms and create incentives for economic development and growth in Cape York.

[Indigenous Affairs Minister] Mr [Mal] Brough said the Government's support was "an expression of the overwhelming desire of people in Cape York to ensure their children grow up in a safe home, attend school and enjoy the same opportunities as any other Australian child".

"The trials in these four communities aim to promote engagement in the real economy, reduce passive welfare and rebuild social norms, particularly as they affect the wellbeing of children.

"A major feature of the reforms is the introduction of a set of obligations attaching to welfare payments, which will require parents to send their children to school and protect them from harm and neglect.

The plan also includes a process to assist those who do not meet their responsibilities before welfare funding would be redirected.

h/t: Political Correctness Watch

Previous related post: Australia plans to link welfare and personal responsibility