Mugabe battles economic crisis

President Robert Mugabe is likely to press ahead with a controversial price blitz that is creating havoc in Zimbabwe, analysts have said.

Mr Mugabe, who has been in office since independence from Britain in 1980, is seeking re-election next year despite an economic crisis blamed on his policies.

Two weeks ago, the 83-year-old ordered consumer prices be slashed after the cost of some basic foodstuffs - which were already in short supply - rose threefold within a week.

Mr Mugabe blames his country's economic woes on a Western-sponsored plot to oust his government. The country's inflation is the highest in the world at 4,500 per cent.

Political and economic analysts said the freeze and Mr Mugabe's threats to nationalise companies, including foreign mines accused of sabotaging the economy, were part of his wider drive to win the 2008 general elections.

"I cannot see how he can let go because this whole thing is about elections. This is Mugabe's response to the notion that he is going to be driven out (of power) by the economy," said Eldred Masunungure, a political science professor at the University of Zimbabwe.

"I think he is perfectly aware of the consequences of his actions, their impact on the economy, but in his calculations, if this is going to ease political pressure on his government, then it is worth it."

The veteran Zimbabwean leader has warned he will not be restrained by "bookish economics", leaving him unpredictable but typically combative.

Mr Mugabe has faced international condemnation over a crackdown on opponents in March which left opposition leader Morgan Tsvangirai injured in hospital after police stopped a banned prayer rally called to protest the deepening economic crisis.

The drive against Mr Tsvangirai's Movement for Democratic Change (MDC) has severely crippled the opposition in its urban strongholds ahead of the 2008 vote.

Mr Masunungure believes Mr Mugabe's threats to nationalise businesses will scare off companies and individuals who privately back the MDC.

"For Mugabe, this is total war, and he is saying those who stand in my path will stand to lose a lot, and those who stand with me will stand to gain here and there, from his patronage," he said.

© Independent Television News Limited 2007. All rights reserved.