After the relative optimism of last year, the situation in Zimbabwe is deteriorating badly. South African-mediated talks between zanu-pf, the party of President Robert Mugabe, and the Movement for Democratic Change (mdc), led by the prime minister, Morgan Tsvangirai, which are aimed at shoring up their shaky power-sharing pact, have broken down, maybe irretrievably. This leaves the one-year-old "government of national unity" as good as dead. Schools, hospitals, courts and other state services have been brought to a halt by striking civil servants. Meanwhile, all new investment projects have been put on hold following the promulgation of "indi-genisation" rules obliging companies worth more than $500,000 to cede a 51% stake to black Zimbabweans-or face up to five years in jail.
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