Zimbabwe's Ruling Party Plans to Transform Economy by Transferring more Wealth to Citizens

The ruling party in Zimbabwe said it plans to transform the economy by transferring more wealth to its citizens. Mugabe and his Zimbabwe African National Union-Patriotic Front will boost the economy through its policies of indigenization and economic empowerment, ZANU-PF officials revealed.

“Over the next five years, Zimbabwe is going to witness a unique wealth-transfer model that will see ordinary people take charge of their economy,” it said. “The people of Zimbabwe have given President Robert Mugabe and ZANU-PF a clear mandate to transform the economy through indigenization and economic empowerment.”

Robert Mugabe recently won the just concluded election which his rival Morgan Tsvangirai described as a 'huge farce' and 'null and void'. Many wondered how Mugabe could have won again though Western nations and Botswana are in doubt of his victory but his victory is hinged on the fact that he has created a niche for Tsvangirai as a western tool.

Mugabe with his appellation of Tsvangirai will always defeat him because Zimbabweans are scared of losing their lands again not when they can remember the notorious Ian Smith Rhodesia regime and the White supremacists. Mugabe received the applause of meaningful African leaders from Nigeria to South Africa much to the chagrin of his rival Morgan Tsvangirai.

Mugabe, 89, extended his 33-year rule of the Southern African nation with 61 percent of the vote in the July 31 election and his party secured a two-thirds majority in parliament. Prime Minister Morgan Tsvangirai, who won 34 percent, called on the African Union and the 15-nation Southern African Development Community to back his demand for a rerun.

With its indigenization policy, Mugabe and ZANU-PF have forced mining companies such as Impala Platinum Holdings Ltd. (IMP) and Anglo American Platinum Ltd. (AMS) to cede majority stakes in their local assets to black Zimbabweans or the government. The Southern African nation has the world’s second-biggest platinum and chrome reserves, as well as diamond, gold and coal deposits.

Tsvangirai had promised to repeal the indigenization measure. Mugabe has also redistributed majority of the lands which were held by the minutest white population. This was the beginning of his fisticuffs with the West who wanted the status quo just as it is in Namibia where the Black population has no say on the economy as well as in South Africa where almost the entire wealth is concentrated in the hands of the whites.

Angolan President says it’s Human to think about Succession

Perhaps, the thinking of succession blindfolded Maummar Gaddafi to the reality when  protests began and he felt Libya will be left in no capable hands on his departure if sudden and swift as the revolution came, hence, he was extremely defiant.

Angolan President Jose Eduardo dos Santos, Africa’s second-longest serving ruler, said he has thought about a transition of power almost 12 months after winning another five-year term.

“Yes, of course, it’s only human to do that,” Dos Santos said in an interview with Portuguese television channel SIC posted on the broadcaster’s website. The full interview is set to air today after 8 p.m. in Lisbon.

The 70-year-old won a new term at the helm of Africa’s second-largest oil producer in August 2012 in the first national elections to determine a president in 20 years. Manuel Domingos Vicente, the former head of state oil company Sonangol EP, was named vice president.

Dos Santos, who came to power in 1979 and is currently the longest serving ruler in Africa after President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea, said he is in favour of growing Angolan investment in Portuguese companies.

“Sonangol has taken the first steps and in some cases it has been successful and in others not, but what matters is that it advances,” Dos Santos said. Sonangol is Banco Comercial Portugues SA’s biggest shareholder with a 19.4 percent stake, according to the website of Portugal’s second-biggest publicly traded lender by market value.

Angola seems the only African country that appears to be more of a real trading partner now to its erstwhile colonial master than been looked upon as a 'colony' like in the case of former French colonies and indirectly, the former British colonies. Portugal ran to Angola during the financial downturn.

Zimbabwe moves to normalise relations with the IMF on its terms

Zimbabwe has made a move to normalise relations with the IMF after its voting right was suspended in 2003 due to policy differences with President Robert Mugabe and non payment of arrears.

The IMF has approved Zimbabwe's plan to clear billions of dollars of arrears, while Harare has agreed to enter a staff-monitored programme with the Fund, Finance Minister Tendai Biti said on Friday.


"This programme is about showing that Zimbabwe can be trusted again," Biti told reporters in Harare. "We engaged with the IMF on our terms."

While its voting rights were restored in 2010, Zimbabwe has not been able to borrow from international lenders since 1999 when it started defaulting on its debt. Its external debt stands at $10.7 billion (6.8 billion pounds).

The IMF board had agreed to allow Zimbabwe to negotiate debt relief and new financing by leveraging its natural resources according to Biti.

Under the staff-monitored programme, the IMF would want to see evidence of sound policies before agreeing to a lending programme.

Biti's comments came after Mugabe said he would hold elections by the end of July in line with a court order which has angered rivals who want them delayed to allow for reforms to ensure a fair vote. Prime Minister Morgan Tsvangirai has also threatened that its party might pull out of elections due to short time frame.

Zimbabwe is still emerging from a decade of economic decline and hyperinflation. The economy has slowly been on the mend since the formation of a unity government in 2009, and the government recently projected growth of 8.9 percent in 2013 which was 4.4 percent last year.

EU allocates €400M in further aid to Syria

After suspending the arms embargo placed on Syria due to the tireless efforts of Britain through its foreign secretary, William Hague in order to pressure Assad to 'negotiate seriously', the EU is now sending additional finance to Syria and its neighbours.

The EU will send €400 million ($523 million) in additional aid to Syria and its neighbours, European Commission President Jose Manuel Barroso said on Thursday. The non-humanitarian aid comprises budgetary support for states neighboring Syria, which have struggled to cope with a huge influx of refugees, Reuters said.

The EU is already the biggest humanitarian donor in the Syrian crisis, committing more than €840 million to alleviate what Barroso called “the most dramatic humanitarian situation in the last decade.” He said unrestricted and unconditional humanitarian access is needed in Syria, as well as an inclusive transitional government.

The EU has so far restrained itself from interfering in the Syrian crisis, preferring rather to lend its voice on the need to avoid escalation that would lead to catastrophe.

On Tax: Americans Renounce Citizenship

Thousands of Americans pack their suitcases, rip up their US passports and move permanently overseas to prevent Uncle Sam from taking their money evey year in anger over the latest tax hikes each year. In the first three quarters of 2012, more than 1,100 Americans renounced their citizenship and made their homes elsewhere, according to the Federal Register.

Available data does not yet include those who left in the fourth quarter, but it is on track to surpass the 1,781 Americans who relinquished their passports in 2011. And the number of Americans who ditched the US in 2011 was seven times higher than those who left in 2008.

With 6 million US citizens living abroad and continuing to pay US taxes, expatriates increasingly abandon their citizenship for the sake of saving cash. The US is the only industrialized country that requires its overseas citizens to pay income taxes – even if their income is generated abroad.

And for wealthy expatriates, the financial consequences of remaining a US citizen are most severe. Individuals earning more than $400,000 a year and married couples earning more than $450,000 a year will be paying an income tax rate of 39.6 percent – which is up from last year’s rate of 35 percent.

Those who earn more than $1 million annually will pay Uncle Sam about $170,341 more this fiscal year, according to the Tax Policy Center. Those who fear losing their savings frequently move to countries that do not tax their incomes.

One third of all billionaires that moved from the US to another country chose to go to ‘tax havens’ such as Switzerland, Bahamas, and Singapore, according to a 2012 study by the Research Institute of Industrial Economics.

While those who forego their citizenship will lose protection from the US government and could face difficulty in visiting the US, expatriates increasingly consider it worth it – including high-profile celebrities like 73-year-old American-born singer Tina Turner and Facebook co-founder Eduardo Saverin.

Turner, who is worth an estimated $200 million, in January became a Swiss citizen and ditched her US citizenship. Saverin, whose net worth is an estimated $2.2 billion, holds Brazilian citizenship and lives in Singapore. Bloomberg estimates that the Facebook co-founder saved at least $67 million in federal income taxes by cutting his ties to the US.

But while the rich and famous make headlines for escaping the IRS’ grip on their finances, all American expatriates are subject to US taxes and are required by law to file estimated taxes and income, estate and gift tax returns. Some lawmakers are even trying to subject Americans to taxes even after giving up their citizenship. Sens.

Charles Schumer and Bob Casey last yearsuggestedthat Congress vote for a law that would force former US citizens to pay taxes for years after renouncing their citizenship – as well as ban them from ever returning to the US.

But in the short-term, ditching the US comes with its own financial penalties: Americans renouncing citizenship are required to pay an often-hefty exit fee. Those whose net worth is more than $2 million or whose annual income tax average is more than $145,000 are required to pay a 15 percent tax on capital gains above $641,000 and taxes on other assets including retirement accounts at the income rate of 39.6 percent.

As the only country to tax its citizens abroad, the US is pushing thousands of its citizens away.
“If you don’t mind where you live and the tax becomes excessive, then leaving might be a good choice,” Nigel Green, CEO of deVere Group, told Yahoo! Finance. “Countries have less of a hold on people. Governments have to raise more taxes, but they can’t go too far.”

G20 Leaders Pledge to Avoid Currency Wars

G20 Leaders Pledge to Avoid Currency Wars
By Alexander Bratersky

Leaders of the Group of 20 said Saturday that global economic growth remains weak despite government measures, but they agreed to avoid currency wars intended to stimulate the economy by devaluing their money.

A meeting of the group's finance ministers and central bankers was held in Moscow for the first time, due to Russia's current G20 presidency. The Manezh exhibition hall, a stone's throw away from the Kremlin, was the venue.

"We recognize that important risks remain and that global growth is still too weak, with unemployment remaining unacceptably high in many countries," read a joint communique published on the G20's official site Saturday.

The communique, signed by high-profile financial experts including former U.S. Federal Reserve Chairman Ben Bernanke, also called on countries to avoid "persistent exchange rate misalignments."

"We will refrain from competitive devaluation," the statement said.

Financial experts said the communique indirectly criticized Japan, which recently devalued the yen to encourage economic growth by keeping interest rates at almost zero.

French Finance Minister Pierre Moscovici told reporters Saturday that G20 members had agreed not to engage in currency wars.

The commitment is in line with the position of Russian Finance Minister Anton Siluanov, who has said exchange rates should be set by the market because Central Bank interference could lead to imbalances, Rossiiskaya Gazeta reported Saturday.

G20 leaders also said they had agreed to establish a joint study group with the World Bank, International Monetary Fund and United Nations to stimulate the financing of long-term investment.

The G20 is also seeking to increase governments' control over the global financial system.

"The pendulum has swung toward tougher financial regulation," Deputy Finance Minister Sergei Storchak said Saturday, Prime reported.

The G20 meeting in Moscow was seen as a milestone for Russia, which is nursing the idea of turning Moscow into a key financial center despite purportedly poor corporate governance.

"A clear and enforced rule of law will be important for Russian financial markets to reach their full potential," Lawrence Goodman, head of the Center for Financial Stability, a U.S.-based financial think tank, told the Moscow Times in an e-mail interview Friday.

"Russian participation in the G20 and inclusion in the BRIC category of nations helps deepen its local financial markets," said Goodman, a former adviser to the U.S. treasury secretary.

"Although the clustering of Brazil, Russia, India and China is somewhat artificial," he said, "the four nations maintain the potential to shape future growth outside the advanced economies."

"No power can stop Iran if it wants Nuclear Weapons' -Ayatollah Khamenei

Iran’s supreme leader, Ayatollah Ali Khamenei, said his country was not seeking nuclear weapons but added that if Iran ever decided to build them, no “world power” could alter the trend.

The supreme leader whose 2005 edict banning nuclear weapons is regarded as binding in Iran, told a group of visitors to his home in Tehran, the capital, that Iran is in favour of the worldwide elimination of nuclear weapons.

“We believe that nuclear weapons must be eliminated,” Ayatollah Khamenei said. “We don’t want to build atomic weapons. But if we didn’t believe so and intended to possess nuclear weapons, no power could stop us.” His comments were posted on his Web site, Khamenei.ir.

American officials say they believe that Ayatollah Khamenei exercises full control over Iran’s nuclear programme. He had earlier rejected direct talks with the United States when he said Washington was “pointing a gun at Iran”.

He called on the United States to show “logic” while talking to Iran. He and other Iranian leaders have often emphasized that before any talks can take place, Western sanctions must be lifted and the West must respect what they say is Iran’s right to a nuclear programme monitored by the International Atomic Energy Agency.

“This is the only way to interact with the Islamic republic of Iran, and in that case the US administration would receive a proper response” from Iran, Ayatollah Khamenei said.

He pointed to American-devised sanctions, to which a new set of measures was added this month, as the prime example of why negotiations between Iran and the United States would fail.

“They seek the surrender of the Iranian nation,” Ayatollah Khamenei said of the United States. If negotiations are a sign of good will, he asked how talks could occur in the face of the current sanctions. He said the sanctions do not show goodwill, hence, Iran will not bow.

“They naïvely think that the nation has been exhausted by the sanctions and will therefore yearn for negotiations with the US,” Ayatollah Khamenei said.

In a separate part of his speech, he sharply criticized President Mahmoud Ahmadinejad and the speaker of Iran’s Parliament, Ali Larijani, who recently traded accusations during a public session of Parliament. Mr. Ahmadinejad caused an uproar by releasing a video of what he said were secret business dealings involving Mr. Larijani’s brother Fazel. During the same session, Mr. Larijani led the parliamentary effort to impeach one of Mr. Ahmadinejad’s ministers.

“People want psychological and moral peace, and I explicitly say that the event was not fitting to Islamic republic’s code of conduct,” Ayatollah Khamenei said, condemning both the release of the video and the impeachment effort.

“This event made me feel sad,” said the ayatollah. He has been Iran’s supreme leader since 1989 with much power and influence.

Oxfam: World's Richest Countries can end Poverty

Oxfam has released a report revealing how the world's most wealthy nations can save the world from poverty. The report detailed how those at the upper rung of the financial ladder can salvage the heinous worm called poverty.

The $240 billion net income of the world's 100 richest billionaires would have ended poverty four times over, according to the London-based group's report. The group has called on world leaders to commit to reducing inequality to the levels it was at in 1990, and to curb income extremes on both sides of the spectrum.

The release of the report was timed to coincide with the holding of the World Economic Forum in Davos. The group says that the world's richest one percent have seen their income increase by 60 percent in the last 20 years, with the latest world financial crisis only serving to hasten, rather than hinder, the process.

"We sometimes talk about the 'have-nots' and the 'haves' - well, we're talking about the 'have-lots'. We're an anti-poverty agency. We focus on poverty, we work with the poorest people around the world. You don't normally hear us discuss wealth. But it's gotten so out of control between rich and poor that one of the obstacles to solving extreme poverty is now extreme wealth," Ben Phillips, a campaign director at Oxfam, told Al Jazeera.

"We can no longer pretend that the creation of wealth for a few will inevitably benefit the many – too often the reverse is true," said Jeremy Hobbs, an executive director at Oxfam. "Concentration of resources in the hands of the top one per cent depresses economic activity and makes life harder for everyone else – particularly those at the bottom of the economic ladder.

"In a world where even basic resources such as land and water are increasingly scarce, we cannot afford to concentrate assets in the hands of a few and leave the many to struggle over what’s left." Hobbs said that "a global new deal" is required, encompassing a wide array of issues, from tax havens to employment laws, in order to address income inequality.

Closing tax havens, the group said, could yield an additional $189 billion in additional tax revenues. According to Oxfam's figures, as much as $32 trillion is currently stored in tax havens.

In a statement, Oxfam warned that "extreme wealth and income is not only unethical it is also economically inefficient, politically corrosive, socially divisive and environmentally destructive."

The financially buoyant countries are not ready to be committed to the betterment of humanity. Their main interest has always been and will always be the continual entrenchment of financial blissfulness for the microscopic few at the expense of the wretched masses.

Africa is at the centre of the suffering yet she supplies the world the needed resources. Africa gives life to others but she is killing herself.