The current shift of financial power from multi-national organizations such as World Bank, I.F.C and others to Sovereign Wealth Funds presents developing nations such as Zimbabwe with a new source of foreign direct investment. A sovereign wealth fund (SWF) is a state-owned fund composed of financial assets such as stocks, bonds, property or other financial instruments. Sovereign wealth funds have gained world-wide exposure by investing in several Wall Street financial firms. These firms needed a cash infusion due to losses resulting from the credit crunch caused by the mortgage meltdown which started in the USA.
SAfrica auto sales slump to eight-year low: industry
Wednesday, 04 February 2009
South African auto sales tumbled 35.4 percent to an eight-year low in January, industry figures showed Tuesday, as local manufacturers cut output in the face of the worst global slump in years.
The recent Monetary Statement by the Reserve Bank of Zimbabwe revealed the relaxation of the foreign exchange market aimed at floating the Zimbabwe Dollar. This represents one step in the right direction only if backed by an active and aggressive growth of export revenues. This is urgent given that a floating currency not backed by exports leaves the currency exposed to wild speculative attacks. Zimbabwe needs to take immediate steps to reclaim its position in the international Trade arena which is the exchange of goods and services across national borders. In most countries, it represents a significant part of National Output. While international trade has been present throughout much of history its economic, social, and political importance have increased in recent centuries, mainly because of Industrialisation, advanced transportation, globalisation, multinational corporations, and outsourcing. In fact, it is probably the increasing prevalence of international trade that is usually meant by the term "globalization".
