For those of you who are unfamiliar with the economic situation in Zimbabwe…it’s bad. Over the past three decades, Zim has gone from one of the most promising countries on the continent, to one of the most pitied in the world. Here’s what I mean:

According to the OECD (Organization for Economic Cooperation and Development)…In the 1980s, Zim experienced 5.0% GDP growth per year. In the 1990s, they experienced 4.3% GDP growth per year. In 2003, they experienced a -18% GDP growth, meaning their GDP significantly declined compared to the previous year.

In 1998, Zim experienced a rate of inflation of 32% (nearly 20 times the U.S. rate of inflation for the same year). In December 2007, the Cato Institute estimated Zim’s rate of inflation was 215,000%. In July 2008 it was at a staggering 250,000,000%. Unfortunately, that’s not a typo.

Their rate of inflation was 250 MILLION percent. In real terms, this means that prices of goods (in Zimbabwean dollars) DOUBLED nearly every day. To compensate, a new 100 BILLION dollar note was introduced. Apparently that wasn’t enough, so they introduced a 100 TRILLION dollar note. As of January 2009 they removed 12 zeroes from their currency, meaning what was once worth Z$1,000,000,000,000 is now worth Z$1.

The reason this is relevant is because we have several entrepreneurs who are originally from Zim. The economic and political situations are so bad that millions of Zimbabweans decided to leave everything they had in order to immigrate to other countries in Southern Africa.

On the “up-side,” the problems in Zim created an interesting business opportunity. For crafty entrepreneurs, the turbulent currency in Zim, combined with a shortage of almost every type of desirable good, meant that exporting South African products to Zim could make for good business.

One of our entrepreneurs recently seized this opportunity by buying solar-powered batteries here in South Africa and then taking a bus into Zimbabwe to sell his batteries. When we asked the entrepreneur how much he was able to sell the batteries for, he replied that one battery was worth one goat. With such an unreliable currency, many people have reverted back to trading solely in goods (so they don’t have to worry about depreciation). We then asked approximately how much one goat was worth. He responded, “…well, it depends on how big the goat is.”

Very valid point.

In case you’re wondering, a goat can range in value from R150-R250 ($20-$32 USD).

An additional consequence of the troubles of the Zimbabwean dollar is that many people choose to use different, more reliable currencies. The most popular are: U.S. Dollar, South African Rand, and the Euro. Interestingly enough, at the Zim border $1 USD can be traded for 10 ZAR (South African Rand). The current market value of $1 USD is actually only approximately 7.5 ZAR. Consequently, it appears our entrepreneur may (unknowingly) be dabbling in a little currency arbitrage : )

We are on a 18 hour layover here in Nairobi – it’s not exactly a place you want to spend the night with all the civil unrest happening here! Reality accosted us once we exited our plane in Nairobi. Hundreds of displaced men with their wives, three-year-old sons and daughters lined the walls and the entrances for a plane that would take them and their families anywhere but here.

It is hard, as a Westerner, to understand the plight or experience of being displaced – your very life and existence is under threat because of your nationality or tribal affiliation. Tonight we saw firsthand people holding on to their families as they look towards a better future and the hope to return to their homeland at some point in the future.

But for now, they are wanderers, aliens – searching for peace and a safe place.

Yesterday’s New York Times Article

To God’s grace, Janelle and I received the opportunity to return to the States for a brief stay and enjoy the camaraderie of our friends and family. The amazing thing is that shortly after we left Kenya, the country conducted national elections that has resulted in falsified elections and civil insurrection.

Riots, killings, rape, robbery and other evils continue to plague one of Africa’s most stable countries. Our hearts rejoice in that fact we aren’t in the current social & political environment in Kenya, yet our heart and continued prayers go to the country we were just in. Please pray with us for the safety, peace and protection of the Church in Kenya.

News about the situation

Click here to view Paradigm Shift’s first YouTube video

What is it with developing countries and their propensity to operate any societal institution or structure corruptly with a myopic view of future development and without a clear understanding that corruption both large and small continues to challenge the trust of their people, cities, counties, businesses, churches, etc.

Corruption is nothing new to human existence, but the pervasive acceptance among developing world nations continues to astound us on this trip, whether the corruption comes from a high ranking government official in hopes of hidden compensation to supplement his growing thirst for wealth or the local police officer wrongly accusing someone in order to augment his meager salary.

We took a taxi home one night in Kenya when a police barricade impeded our progress. The well dressed officer approached the passenger window, oblivious to the two of us sitting behind the tinted glass backseat. “Good evening”, exclaimed the officer as he asked for the driver’s license and registration and simultaneously looking for any leverage for a bribe such as an expired taxi registration and vehicle insurance. The driver was operating within the law, but that didn’t exonerate him from further scrutiny. Questions continued until the officer noticed us in the back seat. “Friends!!! How are you tonight”, asked the officer while clutching his M16. A little nervous, we continued an awkward conversation for a few minutes before the officer implored the driver to continue on his way and take his new friends to our destination.

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