9 May 2008: Much of the talk in the U.S. and global media recently has surrounded the strength of the American economy and the viability of the U.S. dollar. Talk has focused mainly on subprime mortgages, technical versus actual recession, and rising inflation rates. For the month of March, the United States posted a 4.0% year-to-year increase in the Consumer Price Index, reflecting growing rates of inflation.

But let’s put things in perspective. In 2007 the inflation rate in the U.S. was 2.70 percent. In Zimbabwe the rate was well over 100,000 percent.

High levels of inflation in countries like Zimbabwe are indicative of more than economic troubles. In the following troubling nations the levels of inflation implicate the democratization and socioeconomic development as well as the state of human rights. Here are the 10 most inflation-ridden nations in the world and how they rate in terms of these international indicators.

1. Zimbabwe

The Republic of Zimbabwe has been heavily featured in the international media recently due to its political and electoral troubles, but the country has had the dubious honor of serving as the quintessential example of hyperinflation for some time now. In January of this year Zimbabwe’s inflation rate reached its highest point at 100,580.2 percent. At the time of writing, $1 is worth $29,997 Zimbabwe and growing each day, with an unemployment rate above 80 percent and a meager economic growth rate. Many blame the high rates of inflation on the poor economic policies enacted by Robert Mugabe, who has served as the country’s ruler since 1980. Mugabe’s autocratic policies have resulted in strict sanctions from the international community, which have exaccerbated economic problems within the country. Mugabe’s record on human rights protection is bleak as well. The economy was a major issue in the March elections and the country’s economic future may very well hinge on their outcome.

2. Burma

Officially known as the Union of Myanmar, Burma comes in second behind Zimbabwe with an inflation rate of 40 percent. It has been termed a “least developed country” and continues to struggle as one of the poorest countries in Asia. Burma is currently under the the military rule of Senior General Than Shwe, which has been accused of human rights abuses, including the mistreatment of monks protesting for democracry and a group seeking to prosecute the government before the International Court of Justice on charges of forced labor. International oil companies, including some based in the United States, have also come under international scrutinity in terms of their policies within the country and contributing to the humanitarian crisis.

3. Venezuela

Venezuela, best known for its dependence on oil and Chavez, is also the owner of an inflation rate hovering around 21 percent. While the economy has gradually become stronger in the past years, the level of economic inequality has remained consistantly high. Many have attributed the high level of inflation to President Hugo Chavez’s high levels of state spending on social programs such as health care and education, using the high profits which come from the oil industry. At the beginning of this year, the government chose to change the currency, in effect changing its value, in an attempt to lower inflation rates. There have been concerns recently amongst groups such as Amnesty International about the safety of human rights groups within the country and threats to free speech protections for opposition groups.

4. Guinea

The West African nation of Guinea comes in just below Venezuela with an inflation rate of about 20%. The country remains one of the poorest in the world despite its abundance of natural resources – most of its national income comes from the export of mined minerals. The country has a vast amount of resources and potential, but generally lacks the infrastructure and skilled labor needed to attract foreign direct investment. Guinea is, however, a relatively peaceful nation with a rather stable democracy. Unlike many of the countries on this list, Guinea has had a fairly good track record with human rights in the past and has participated in peacekeeping operations in a number of neighboring countries.

5. Iraq

Iraq is obviously in the most unique position of all of the countries on this list. Iraq’s income is still about 95 percent dependent on oil exports and oil prices are up. Iraq’s inflation rate, however, is about the same as Guinea’s—around 20 percent. The economic situation within the country tends to fluctuate along with the security situation. In other words, there was improvement in the economy immediately following the surge of U.S. troops, but continued improvements depend on insurgency activity. With the oversight of the United States, Iraq’s government is attempting to pass and implement laws to stabilize the economy and attract foreign investment. With so much internal chaos and external oversight, Iraq’s future may be the most uncertain of all of the countries in this list.

6. Democratic Republic of the Congo

The Democratic Republuc of the Congo (DRC) comes in just under Iraq and Guinea with an inflation rate of about 18 percent. Like Guinea, the DRC is another country with vast amounts of natural resources and potential, but is just now stuggling to emerge from a violent conflict, which devastated the country’s economy. The DRC has a low population density and much of the economic activity in the country is done outside of the formal sector and is therefore not included in the country’s official statistics. There has been improvement since 2002, when foreign troops left the country after the end of the Second Congo War which involved many of the surrounding African countries. An increase in mining activity provides hope for the future, but government corruption and the wounds of past conflicts threaten to keep the country from realizing its full potential.

7. Iran

Known more often in international relations circles for its nuclear rather than economic policies, Iran’s inflation rate is currently at 17 percent. The main export is of course oil, but the government has been attempting to diversify the economy. Inefficiency within the state is compounded by the fact that the majority of all economic activity is controlled by the government. While increased oil prices have resulted in increased revenue, the ongoing problems of unemployment and high levels of inflation have made growth difficult. Human rights have continued to make international headlines, especially concerning issues of torture and targeted discrimination against homosexuals.

8. São Tomé and Príncipe

The small island nation of São Tomé and Príncipe, located off the coast of West Africa in the Gulf of Guinea is probably the least well-known country in this grim top 10. This Portugese-speaking nation, which consists of two small islands located near the equator, has the same inflation rate as Iran—around 17 percent. Historically, the country’s economy was based on the export of cocoa, but recent foreign investment and development in the surrounding Gulf of Guinea has transformed the country into a petroleum-exporting state. Because of its size, geography, and small population, almost all goods must be imported, which hinders the country’s ability to become competitive in the global market. Having signed a 60/40 deal with Nigeria over oil rights in the Gulf of Guinea, São Tomé and Príncipe’s economic future is bleak.

9. Afghanistan

Afghanistan is another country undergoing economic and political transition while facing a myriad of obstacles, one of which is a high inflation rate—just over 16 percent. The country has experienced some positive growth since the fall of the Taliban in 2001, due primarily to international assistance. However, violence and the government’s inability to effectively govern the entire country routinely threaten to stop the momentum of development. The most prevalent challenge is to expand economic growth while also trying to curb poppy cultivation and limit the illicit economy. Despite the commitment of the international community, it was recently reported that foreign donors, including the United States have fallen short of the amount of money which was pledged –around $10 billion. What is certain is that the pursuit of economic vitality in Afghanistan will continue to go hand in hand with its political development and quest to establish rule of law throughout the country.

10. Uzbekistan 

Rounding the list is Uzbekistan—a land-locked, former-Soviet, Central Asian country—with 16 percent inflation. The country’s greatest export is cotton, followed by natural gas and oil. The greatest international influence in Uzbekistan is Russia and Russian businesses are becoming increasingly interested in the country. While Uzbekistan is formally a democracy, the executive branch actually holds much more power than the legislative and judiciary branches. This has caused multiple human rights organizations to label the country an authoritarian state lacking regard for civil rights. In 2005 it was named one of the most repressive regimes in the world by Freedom House. Distrust in the government has reached a point where international organizations have begun to doubt even economic statistics coming out of the country. As with many of the countries on this list, Uzbekistan’s future economic success might ultimately be tied to its political development attempts to increase transparency.

While all of the countries on this list have in common their high rates of inflation, they also share many similar circumstances. Many states in the list are transitioning from conflicts, struggling to achieve democracy, and have dubious records regarding human rights abuses. If inflation rates continue to rise in the future, the international community ought to pay more attention to the links between such economic factors as inflation and social, political, and humanitarian conditions within the struggling countries.