18/02/2012 Dateline London


18/02/2012

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released without charge. There will be a full news bulletin

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at one o'clock. Now it's time for Hello and welcome to Dateline

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London. The future of the euro and the Greek bailout in the balance -

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yet again. Should sanctions be eased on

:00:29.:00:32.

Zimbabwe? And is it anyone but Mitt Romney in

:00:32.:00:35.

the US presidential elections? My guests today are Tererai

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Karimakwenda of SW Radio Africa, Anthony Faiola of the Washington

:00:37.:00:40.

Post, Nisreen Malik of The Guardiam and Adam Raphael of Transport

:00:40.:00:49.

Magazine. There are signs of a mood change

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within the European Union over what to do about Greece. After months of

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saying a Greek default would be unthinkable, the German finance

:00:55.:00:58.

minister this week appeared to be more relaxed at the prospect - amid

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some fears in Germany that Greece could be a bottomless pit. So are

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we on the verge of a second Greek bailout - or another kind of euro

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crisis? People suggest it will go ahead on Monday, but there are

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doubts. I think it will go ahead, but I do not think actually,

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whatever the financial bits, the fact is that conditions that are

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being put on the Greek people are such that no democratic Government

:01:29.:01:35.

is going to survive. You have half of young people unemployed, wages

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being reduced by 25 or 30 %. Can you imagine any Government

:01:41.:01:46.

surviving those conditions? Whatever the EU fiddles around and

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I am sure this next bit will go through, the real issue is how it

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it is going to be received by the Greek people. We have already had

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riots, but I think it will get much worse and in the end, either the

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for any Greek Government will fall and the EU will see, I think, an

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exit from the euro, because that is the only way the Greek economy will

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revive. It is not likely to revive under the present stringent

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measures. I can Germany has a lot of responsibility for what is going

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:02:32.:02:33.

on. The conditions even under Weimar in Germany, were better than

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the will be for people increase. The idea of having a German

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supervising the Greek people. Quite rightly, the politicians increase

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say this is totally intolerable. I have a great deal of sympathy for

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what creases going through. I remember the IMF in 1976 year, and

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they remember the day when Denis Healey was able to tell them to get

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out. And those out nothing like the conditions being imposed on the

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Greeks. You get a sense no one knows what they're doing in this

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situation. When they gave them the first bail-out, it was assumed it

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would put them on a path that would take them out of the situation, but

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here we are again the very next year. This is the second bail-out

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in two years, so you get a sense no one really understands the forces

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at work here and that they seem to be improvising. The country has

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been in recession for at least five years, so how do they expect them

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to be able to pay back the money? I get a sense that no one understands

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what is involved. You have been reporting from

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Greece? Absolutely. The situation there is fascinating. Even if the

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Greeks did default and leave the euro, there has been an argument

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make that this is what they need to do. People have looked at the

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Argentine example. Argentine air, after their it defaults, after a

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year of deep pain, they were able to start paying again. But the

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Greek situation is much more complicated. They do not have a

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base it is jump-start from. Because they're in the EU, the cannot

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immediately start raising import tariffs. It is such a complex

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situation. At the same time, this situation there, the social

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upheaval is getting worse and worse. When I was there, you could see

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that homelessness was increasing, HIV rates were increasing, the

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social fabric is becoming on wind in the country. Do you agree that

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no democracy can survive this? There will be elections in April,

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and everyone is assuming the majority party will be thrown

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white-out. That is a really good point. It is a difficult question

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to answer, but I think it is true that the Germans are imposing

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impossible goals on a Greek Government. If they had followed

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the austerity straitjacket of the letter of the loch, Athens would

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probably be in complete cinders by now, rather than the flames we have

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seen. If they do all the right things, everything expected of them,

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by Twenty20 after another eight years of pain, they will still have

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their GDP to debt ratio of 125 %, which is completely unsustainable.

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The important points here are that a financial: some station required

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has never happened in economic history of the world. --

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consolidation. Also changed the political economical to of the

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country, it is not a numbers question increase, it is a

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political culture question about people paying taxes, the way the

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private sector is very moulded into the public sector. But the second

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thing which is fascinating, and I think there has been a sea change

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over the past four months, is that Greece leaving the EU is no longer

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an unmentionable heresy, it is something people are talking about

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in practical terms. If and when it does happen, this is when it is

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expected to happen. This is because Germany and others feel the risk of

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contagion is less severe and the firewalls can prevent contagion

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happening. Also Germany is much happier to throw its weight around

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without the fear of bringing up the ghosts of 1939. I think the varying

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trysting point was the Polish Prime Minister who said he fears German

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lack of action rather than German intervention. From Poland of all

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countries. There is a general political boldness and a general

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lack of fear of Greece falling out. Less than there was.

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It may be that the eurozone can survive without Greece. But in

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terms of Germany, is part of it that the Germans do not really

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quite know what they want. They would like the problem to go way,

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they would like to deal with France in sorting it out, but actually in

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almost every philosophical sense, it they have been dithering and

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Angela Merkel has been dithering. She does not have an easy task, but

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they really do come from a position which I think other Europeans are

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beginning to find more and more difficult. If Greece does Kohl, the

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real issue then is contagion. Then people will bet against Portugal,

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against Spain, there will be huge market shifts and the question is

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will those countries now be vulnerable? I do not think one can

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underplay the consequences of a creek default. Very, very serious.

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The politics of Germany, frankly, outside of Germany, are very

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difficult to understand. We have a coalition here, but they have a

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very different kind of coalition. Angela Merkel rides it brilliantly,

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but nevertheless, her hands are very tight.

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One thing that strikes me, talking to Germans and German politicians,

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is that behind it will, Germany could face huge problems if there

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are drop-outs from the euro. They might not be able to have their

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export-led recovery. Absolutely, it is fascinating. If you look at the

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German relation with the rest of the eurozone, it is almost like the

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relationship between the United States and China. The Germans have

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a massive surplus when it comes to trade with the other countries are

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matters one reason why they have been able to feed their economy.

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They would risk that if you started seeing disintegration of the

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eurozone. I think that is one reason why you see Angela Merkel

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and her Finance Minister and others arguing that default is an option.

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She has basically maintained a line that this would be bad for Germany

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and bad for Europe. I was reading somewhere, they were saying the

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birthplace of democracy is the one place where people have no choice

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any more. There is no democracy, they're being told exactly what to

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do. That picks up something you were alluding to earlier. When I

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talk to politicians, there is a sense of real despair, because they

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cannot really get out of it. There is despair, but also

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isolation. You feel the political class has become isolated from the

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people in Greece. The current Prime Minister has not been elected. The

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Government policies are being imposed from outside. So you have a

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three-tiered disconnection, you have the troika, the Government and

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then the people, none of which is talking to the other. I was hearing

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reports from grace about higher politicians are hiding from the

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people. They're not giving interviews, not allowing certain

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features to come out into the media. They feel they are not answerable

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any more. They cannot give any answers in the short term. What is

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interesting is that all great parties have signed up to their

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demands. Will a change of Government help? Will the new party

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be able to survive the sort of conditions that are being imposed?

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It is very difficult from outside to judge another country's politics.

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I would just be amazed. The IMF would never dream of imposing such

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harsh conditions on a country which is receiving aid. Nothing like that

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happened in Britain. I do not believe anywhere has ever imposed

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such tough conditions. While the world's attention has

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been focused on the Arab Spring and the overthrow of ageing dictators -

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one of Africa's most notorious - Robert Mugabe - remains hopeful

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that sanctions on his country might be eased. Should they be? And what

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are conditions like now in Zimbabwe? It is Robert Mugabe's

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18th birthday. Celebrating in style. He is supposed to be spending �1

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million for this benefit. He remains the only candidate the

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party has put forth for the next elections, at age 88 and having

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been in power since 1980. Yesterday, the EU eased restrictions, those

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targeted sanctions placed on him and his allies. They removed 51

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names from the list of those whose assets were frozen and who have

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travel restrictions. On that list, is the foreign minister and the

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justice minister. If you look at this situation on the ground, those

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sanctions were imposed because there were human rights abuses

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going on. Nothing has changed. This week, a group of female activists

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were pulverised by the police with batons sticks for just marching on

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Valentine's Day, giving her a love cards. Not allowed to do that in

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Zimbabwe. The police came down on them, made arrests and bashed them.

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People are still in jail on trumped-up charges, politicians are

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being arrested on trumped-up charges. Foreign newspapers have

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been threatened, if they do not register, they will not be allowed

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to work in Zimbabwe. And a group of NGOs were told they could not

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Are the sanctions working? They are hurting the people but not the

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political classes. There are no real sanctions on Zimbabwe plus a.

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These were targeted restrictions on Mugabe and his close allies. Assets

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were frozen and there were travel restrictions, they couldn't go to

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America or Europe. So there are no sanctions. But Robert Mugabe is

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playing the card. But it is not true. Is it hopeless for outsiders

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to do anything? South Africa is supposed to have taken the lead.

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Then Nigeria was tempted to do some things but nothing has happened.

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The older I become the more ageist I become. It is absurd a man of 88

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should be there. It sends a very bad signal, this relaxation of

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sanctions. On the other hand, you have got to deal with Zimbabwe, I

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think, in an African context. I don't think Europeans or Americans

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will have much sway. It has got to be done throughout Africa, however

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infuriating it might be. It has been a sad disappointment so far,

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but if we are going to have any part to play, it has got to be

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through African countries. I am a bit constricted about this because

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I am from Sudan and there are sanctions on Sudan, quite severe

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sanctions. I see your point that there are not any sanctions on

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Zimbabwe as an economy, but I think a certain isolation of the

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political class from the international community helps them

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entrench even further. I kind of seat where people are coming from

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when they talk about easing sanctions, especially if they

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haven't worked, especially if they have not been severe enough for

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people to affect regime changed. People think that if you get the

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government and members of the government to engage with the

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international community by coaxing and diplomacy, maybe you can get

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some kind of incremental change happening, because in Sudan that is

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the case. The government is so isolated, they have nothing to lose.

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Therefore, it becomes a catch 22. Such severe sanctions are imposed,

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the government becomes cut off from the rest of the world and has

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nothing to lose, and therefore becomes more dictatorial. I can see

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where the view is coming from. is interesting. These are very

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personally targeted sanctions. You are not creating an embargo. In

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fact, understanding is that looking at the US Embassy website for

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Zimbabwe, they are heralding the fact that trade has increased

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between the US and Zimbabwe. This is to prevent Mugabe from shopping

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at Harrods. Or Mrs Mugabe. Exactly. To that extent, you would imagine

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that it would have not had a big effect. But they want negotiations

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which is why they have lifted it. But I guess sanctions are always a

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hard sell. The problem with some Bob Quick is that you are dealing

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with a regime that is very clever. -- the problem with Zimbabwe. If

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this was being done by a white government, let's go back a

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generation to Ian Smith, the whole world was up in arms. Apartheid,

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apartheid. Let's go and help. But it is being done by a black

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President, so it is hands off because Robert Mugabe played the

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race card, very cleverly. It is an African problem. There is a Jacob

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Zuma's exact words. You talk about people Valentine -- you talk about

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people handing a Valentine's cards and been beaten up. What about the

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opposition, which some people feel they have sold out because they

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have given a degree of respectability to this democratic

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process in Zimbabwe? The MDC, by joining the coalition government,

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they create another layer of problems because when you talk

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about the Zimbabwe and the government, they are a part of it.

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So when they are beaten and arrested, and they are, arrested,

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thrown in jail, they are being prevented from holding rallies. The

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actual Prime Minister himself is not respected by the army. They

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don't salute him. He cannot share government meetings. At nothing

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happens. He continues to make unilateral decisions. Joining the

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coalition, they say, to stop the violence, and it was a way to

:18:34.:18:40.

stabilise the economy, to give people a bit of a reprieve. But now

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they are a part of the government, and that is a problem.

:18:45.:18:50.

Pew Research Prince Rick Santorum, now at least neck-and-neck with

:18:50.:18:53.

Mitt Romney for the Republican nomination to challenge President

:18:53.:18:59.

Obama. Is he a credible set -- candidate or is it anyone but Mitt

:18:59.:19:05.

Romney moment? What do you make of what is going on in your country?

:19:05.:19:10.

Mitt Romney is having a hard time as a front runner. Rick Santorum

:19:10.:19:18.

initially surprised many during the Iowa caucus, and then you see after

:19:18.:19:22.

Florida, Mitt Romney set the record straight again and said, I am the

:19:22.:19:27.

front runner. Since, we have seen Rick Santorum emerge as this might

:19:27.:19:30.

of bright candidate, one that is appealing to the cap --

:19:30.:19:36.

Conservatives, and Mitt Romney is having a hard time attracting. It

:19:36.:19:42.

is a difficult position for him be partly because he has to combat

:19:42.:19:49.

this image... He has to presenters of just as conservative as Rick

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Santorum in order to fight this fight, and that is not where he

:19:52.:19:57.

wants to be when it comes to the actual election against Obama.

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is far too right wing. Exactly. He jeopardises the middle voters

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forced to up I think he has a bigger problem in that he is very

:20:06.:20:14.

wealthy. And he is failing to connect with the hinterland of the

:20:14.:20:18.

Republican voter. In Michigan, it has been interesting, where Rick

:20:18.:20:24.

Santorum has come out with, my father was a coal miner, and this

:20:24.:20:30.

sort of upper working class schticks. And it has worked. And

:20:30.:20:34.

Mick Rollitt is struggling because he has a very lucrative career in

:20:34.:20:39.

private equity. And his father before him had capital. Especially

:20:39.:20:44.

in this current climate, which is very anti- banking, he is not an

:20:44.:20:51.

oil magnet. He is a financier. say this is coming out within the

:20:51.:20:54.

Republican Party, so you can imagine that if he is the candidate,

:20:54.:20:59.

come the autumn, this kind of class thing is going to play very hard.

:20:59.:21:03.

We have seen some other Republicans saying, this will be the guy that

:21:03.:21:09.

will give you the pink slip. Absolutely. This is playing out a -

:21:09.:21:15.

- against the backdrop of the occupier Wall Street, and 81%

:21:15.:21:23.

environment. -- and the 1% environment. That is where Rick

:21:23.:21:28.

Santorum is coming in. I do not disagree, but is he a credible

:21:28.:21:35.

candidate? The answer is no. This man is a par bright win up to. I

:21:36.:21:39.

accept I am approaching this as a white European, but nevertheless,

:21:39.:21:44.

this man is totally unelectable. He may be electable in Republican

:21:44.:21:49.

primaries, but this is a sign. This is why American politics is

:21:49.:21:53.

fascinating. America has gone collectively mad in this Republican

:21:53.:21:57.

race. It is extraordinary to European eyes they could put

:21:57.:22:03.

forward such a bunch of nutcases to try to, you know, contest for the

:22:03.:22:09.

most serious political post in the world. Obama must be laughing, that

:22:09.:22:12.

is all I can say. He is loving every day of the year. Rick

:22:12.:22:18.

Santorum is not credible. He may win in Michigan because of all the

:22:18.:22:23.

sensible things you have said, but, my goodness. Poor America. I would

:22:23.:22:28.

have to agree. I love the language she is using in describing him as a

:22:28.:22:33.

nut. But you have a situation where the Republicans do not have much of

:22:33.:22:37.

a choice in terms of candidates this time around. I cannot see

:22:37.:22:42.

anyone strong enough to challenge Obama. You are talking about the

:22:42.:22:47.

religious fanaticism, and all of the Mormon background, and that

:22:47.:22:51.

will never win in the general election. As you say, it may play

:22:52.:22:55.

in certain states where Republicans and Conservatives have the majority,

:22:55.:22:59.

but when it comes to the National Stakes, they will never produce a

:22:59.:23:06.

candidate going against Obama. he will be running against whoever

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wins the Republican nomination, but he will be running against the

:23:09.:23:13.

economy. What it comes down to is what is the American economy going

:23:13.:23:19.

to look like at that time people are going to the ballot boxes? I

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mean, Americans, you know, they will make a decision based on their

:23:23.:23:28.

pocketbooks. They always do. That said, party affiliations come

:23:28.:23:38.
:23:38.:23:38.

through. And polls suggest some Torran -- and polls suggest Rick

:23:38.:23:44.

Santorum going forward. The Republicans are having a back and

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forth and creating ill-feeling and ill-will. That is exactly what the

:23:48.:23:52.

Democrats want. How can this big party destroy itself in this way?

:23:52.:23:56.

cannot remember any time in American politics we have had a big

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party taken over by people who really are not representative of

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the election. But to have a huge purchase on these primaries. It is

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worrying and bizarre. Isn't it also true, for instance, Arnold

:24:11.:24:15.

Schwarzenegger up in California. If he had to go through the usual

:24:15.:24:18.

process, because it was a special election, he would probably not

:24:18.:24:22.

have been the Republican candidate, because he would have been seen too

:24:22.:24:28.

far in the centre. There is a problem here. The tea-party and

:24:28.:24:33.

their influence remains strong, especially when it comes to the

:24:33.:24:37.

base of supporting candidates. That said, looking at this from a

:24:37.:24:41.

European point of view, you have to understand America is more

:24:41.:24:49.

conservative. I understand that. Goldwater and Reagan, they were not

:24:49.:24:56.

like this lot. These people had a real resonance. I am being unfair

:24:56.:25:00.

to you, but I want to test you to say, is this a moment of madness

:25:00.:25:05.

for America, or is it part of the great American political process?

:25:05.:25:09.

There would be Democrats that agree with you.

:25:09.:25:13.

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