(Releads with resumption of talks) By Nelson Banya HARARE, Aug 29 (Reuters) - Zimbabwean power-sharing talks resumed in South Africa on Friday to try to end the post-election political deadlock that has worsened a catastrophic economic decline. President Robert Mugabe and opposition MDC leader Morgan Tsvangirai have failed to reach agreement in over one month of talks that followed Mugabe's unopposed re-election in a ballot boycotted by Tsvangirai and condemned around the world."The most important thing is that the talks are going on," South African President Thabo Mbeki's spokesman, Mukoni Ratshitanga, told Reuters. He did not elaborate. In a sign of the growing desperation in Zimbabwe, Mugabe's government lifted a ban on aid groups providing food and humanitarian assistance. They were banned ahead of the election, accused by Mugabe of helping the opposition. All parties would participate in the negotiations in South Africa and no deadline for an end to the talks was set, said South Africa's deputy minister of foreign affairs Aziz Pahad. "We do hope that these talks can lead to the finalisation of all outstanding matters, so that we can start with normalising the economic, political and social situation in Zimbabwe," he said. However, Zimbabwe's state-owned Herald newspaper earlier quoted Justice Minister Patrick Chinamasa, chief negotiator for Mugabe's ZANU-PF, as saying: "There was no need for more talks since there was a deal already on the table that was waiting to be signed." But Tsvangirai's Movement for Democratic Change said it would not sign the deal in its current form, although it remained committed to talks. "ZANU-PF has dug a hole for itself. It is a tragedy that they want to continue to dig," said spokesman Nelson Chamisa." DEFIANT MUGABE Mugabe, who reopened parliament this week in defiance of opposition objections, has said he will soon form a new government without the MDC. Chamisa said it would not cooperate with Mugabe until talks are concluded. Tsvangirai believes the impasse could be broken if a transitional authority governs for up to two years, followed by fresh elections and a "people-driven" constitution, the party said in a statement. Tsvangirai boycotted an election run-off in June because of attacks on his supporters, even though he won the first round. Regional heads of state, who mandated South African President Thabo Mbeki to mediate in the Zimbabwe talks, have so far failed to push the parties into a deal. The breakaway, smaller MDC faction led by Arthur Mutambara is also part of the negotiations. It has taken a softer line than Tsvangirai's camp and analysts say it has moved closer to Mugabe, in power since independence from Britain in 1980. The economic price of the deadlock is rising by the day. The hardships -- inflation of over 11 million percent is the world's highest -- have already driven millions of Zimbabweans to neighbouring countries. Critics say Mugabe's policies, such as seizing white-owned commercial farms for distribution to blacks, have ruined the agriculture sector. Mugabe blames Western sanctions for Zimbabwe's economic collapse. "One of the biggest challenges we face as a nation is coming up with strategies to maximise agricultural output in order to restore food self sufficiency and end food imports," Mugabe told a farmers' exhibition on Friday. (Additional reporting by Wendell Roelf in Cape Town; Writing by Michael Georgy)
South African President Thabo Mbeki (R) is welcomed on arrival at Harare International airport by Zimbabwe's President Robert Mugabe August 9 2008. Mbeki, the region's Zimbabwe mediator, is in Harare and ...
