I n April 18, 1980 the new sovereign republic of Zimbabwe was born from the former British colony of Rhodesia.
The Rhodesian Dollar was replaced by the Zimbabwe dollar at par value.
At the time when Zimbabwe gained its independence, the Zimbabwean dollar was more valuable than the US dollar.[4] After the sovereign republic of Zimbabwe was born, the country experienced a period of strong growth and development.
Wheat production for non-drought years was proportionally higher than in the past.
The tobacco industry was thriving as well. For all practical purposes the economic indicators for the country were strong.
In the 1990s Zimbabwe entered a period of land reforms. During this period from 1999–2009, the country experienced a sharp drop in production in all sectors. Unemployment rose and life expectancy dropped.[5]
The land reforms were implemented under president Robert Mugabe.
The land reforms were intended to redistribute land from the white landowners back to the black farmers. When the land was redistributed, the food production dropped sharply.
Many argue that this occurred because the black farmers had no experience or training in running large scale farms.
The Zanu-PF government holds that the majority of Zimbabwe's economic woes are a result of the economic sanctions imposed by the United States of America and the European Union.[6]
This claim is unfounded because the sanctions are targeted at a specific group of 200 Zimbabweans who are closely tied to the Mugabe regime.
The sanctions are not generalized sanctions, but instead involve asset freezes and visa denials.[7]