International donors want President Robert Mugabe and his government to devalue the dollar and adopt sound economic policies, otherwise they will not give food aid to more than 2.5 million people facing starvation, it was established this week.
Aid agency sources said representatives of the European Union, the US and other major donors were insisting that the unfolding famine in Zimbabwe — previously a regional food exporter — had been largely caused by wrong economic polices, chiefly the skewed exchange rate.
"The donors’ position is that Zimbabwe’s humanitarian and food crisis is two-thirds a result of wrong economic policies," one source told the Financial Gazette.
"As well as other corrective measures, donors want to see the government immediately implement an exchange rate that truly reflects the value of the dollar," the source said.
The donors are said to have made their position clear to United Nations (UN) coordinator in Zimbabwe Victor Angelo during discussions last week at the UN’s New York headquarters.
The talks were held in part to try to narrow the gap between Harare and donors.
Aid agency sources said representatives of the European Union, the US and other major donors were insisting that the unfolding famine in Zimbabwe — previously a regional food exporter — had been largely caused by wrong economic polices, chiefly the skewed exchange rate.
"The donors’ position is that Zimbabwe’s humanitarian and food crisis is two-thirds a result of wrong economic policies," one source told the Financial Gazette.
"As well as other corrective measures, donors want to see the government immediately implement an exchange rate that truly reflects the value of the dollar," the source said.
The donors are said to have made their position clear to United Nations (UN) coordinator in Zimbabwe Victor Angelo during discussions last week at the UN’s New York headquarters.
The talks were held in part to try to narrow the gap between Harare and donors.