Zimbabwe's Ruined Economy Signals End for Mugabe

Robert Mugabe may finally be losing his grip on Zimbabwe's throat. The accelerated decline of what's left of Zimbabwe's economy might soon leave the embattled president without the cash to pay off those on whom his political survival will depend. As prices spike and waves of Zimbabweans flee the country in desperation, the inner circle of his ZANU-PF party may finally have little choice but to push him aside.

The 83-year old president, in power since 1980, is unlikely to go gracefully. He vows to seek another five-year term in elections scheduled for March. Yet, across his country, high inflation has become hyperinflation. To this point, Mugabe's government has been able to collect taxes and maintain the president's patronage network, buying the loyalty of the army and police. ZANU-PF officials have been able to feed their most useful constituents.

But official estimates now set inflation rates at around 4,500 percent. The real figure is almost certainly much higher. The director of the International Monetary Fund's Africa department warned on July 31 that the figure could reach 100,000 percent by year's end. Prices for consumer goods change several times a day. Meat, produce, eggs, bread, cooking oil and soap have become precious commodities.