I wouldn't compare the plight of Germany in the thirties with what is happening in Zimbabwe as of present. Based on the above article it appears that the government fell into the classic white property pillage blunder. Which usually works in the short term for a few years, but eventually ruins many third world countries. Germany was a case of abusive reparations. The country still had wealth, and had prospects for external trade. Zimbabwe is in a much more difficult situation.
Zimbabwe is obviously no longer credit worthy. Without the ability to obtain credit they are stuck at the mercy of barter and nothing more. Credit requires collateral. Collateral is property usually land to guarantee repayment. Without guaranteed property rights your property is useless. Thus the country that invalidates property rights invalidates their own credit worthiness. They cannot be trusted to follow standard business practices. They could easily print up worthless money, or just say they don't have to pay. So why risk lending any money to the country or its citizens.
The reality is that the most important thing for a third world country to have is a legal system that secures property rights. Once a country has that they have something to borrow against. They have something to sell. They have something to lease. They have something to tax. Without that you really don't have anything your just a thug. Your money isn't worth anything, because there is nothing to back it up.
Anyway that might explain Zimbabwe. Which is a shame once something like that happens it takes decades to recover.
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