Reference
OpenAI's Answer
In 1997, Zimbabwe's government, led by President Robert Mugabe, decided to provide significant compensation to war veterans who had fought in the liberation war. Each veteran received a payment of Z$50,000, which was unbudgeted. This large payout led to the Zimbabwe dollar losing its value by 70% in a single day, marking the beginning of a severe economic downturn for the country. The sudden devaluation and removal of credit lines by international institutions contributed to Zimbabwe's ongoing economic challenges.
This decision is often cited as a pivotal moment that signaled the start of Zimbabwe's well-documented economic decline, as it dramatically affected the nation's financial stability and currency value (source).
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