IMF and World Bank International urging the world's governments to accelerate the reform of public spending programs

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IMF and World Bank International urging the world's governments to accelerate the reform of public spending programs

Post  Admin on Thu Apr 17, 2014 9:14 am

Economists «Middle East»: the time is appropriate to withdraw plans for monetary easing .. The current recovery is not enough

Inaugurated the International Monetary Fund and World Bank annual spring meetings yesterday in Washington in the presence of dozens of finance ministers and central bankers in the world («Middle East»)

Washington: Mohammed Al-Bishi
Inaugurated the International Monetary Fund and the World Bank, yesterday, the meetings of the annual spring in Washington, in the presence of dozens of finance ministers and central bankers in the world, invite the world's governments to start actually in the reform of public spending programs, pointing out that public resources in many countries of the world are still on the the brink of collapse, while the economies of struggling for the return of economic growth to pre-crisis levels, which highlights the need to implement those reforms.

The officials revealed at the International Monetary Fund that the political moves finally contributed to a significant degree of stability in public debt ratios in most developed economies, that of religion in this country, its highest level ever, confirming that the mutation of public debt will take some time to recede, where it is necessary to develop credible plans over the medium term in order to reduce debt ratios and at the same time enhance the growth prospects in the long term.

IMF experts predicted a slower pace of financial control in various developed economies in 2014, with the focus shifted towards identifying the best ways to design fiscal policies supporting increased financial control and recovery, which remains fragile.

In this regard, said Sanjeev Gupta, Director of the Fiscal Affairs Department on behalf of the International Monetary Fund, said that «chronic high debt ratios in most countries still cast a shadow over the medium term. Against this background, the initial maximum still is to design and implement credible plans to set medium-term fiscal to reduce debt ratios to the safe levels, while achieving a delicate balance between the goals of equity and efficiency ».

He guessed Fund to witness the public resources in emerging markets change is limited in the current year, with an expected further improvements in 2015, despite the fact that budget plans for 2015 have not yet adopted, the financial control seems set to continue over the next year, and as a result will start debt ratios to GDP in about half of the decline in advanced economies with high debt by 2015, noting that he would not reach this point by the end of 2014, only a small number of economies.

On emerging markets, said participants in the meetings of the International Monetary Fund and the World Bank, that the weaknesses in the emerging markets and low-income countries still exist, pointing out that the deficit in the economies of emerging markets is much higher than the levels prior to the crisis, where the preferred most countries to postpone fiscal adjustment in 2014, to a later date, while rising in emerging market economies most integrated with international capital markets, borrowing costs and the degree of financial volatility.

Although fiscal imbalances did not induce bouts of recent unrest, may lead investors to dip the feet of the risk and increase financing conditions to restrict the deterioration of public debt in most of these countries.

Economists have been confirmed for the «Middle East» that the time is appropriate to withdraw plans for monetary easing, and that the current recovery is not enough.

Experts believe that the fiscal reforms with good design can enhance the confidence of investors and working to strengthen social safety nets and support domestic savings have eroded economies where savings.

The fiscal deficit continued to widen in 2014 in a lot of low-income countries with a rate exceeded government spending on an ongoing basis in economic growth rates and revenue according to observers, as it is expected to increase debt ratios over the next two years, albeit more moderate pace in most countries.

With regard to reforms, spending stressed the IMF to ensure the continuity of public resources requires a choice between alternatives tough on both sides of taxes and spending in the budget, while can contribute to the tax reform in promoting growth is possible by removing distortions, contribute to reform spending in improving the delivery of public services.

The fund raised several points for the implementation of reforms of public spending, which ensure the continuity of the affordability of social spending and public sector wages, and raising the retirement age and adjusting contributions and benefits. And contain the growth of public sector wages on a permanent basis, which should bring more in-depth structural reforms in order to enhance the efficiency and supported community dialogue.

He also urged the Fund to support the establishment of institutions expenditure control holds the binding restrictions on the path of public spending, pointing out that the decentralization of public finances, has achieved positive results as well.

World Bank For his part, stressed the need for collective action to resolve the fundamental problems afflicting the world today and affects millions of us, and even billionaires, and comes in the forefront of poverty, where lacks about two billion people lack access to energy, and does not get an estimated two and a half billion humans to basic financial services, as the world faces an impending disaster on the planet from climate change.

He said representatives of the World Bank: «If we want to reach our goal to end extreme poverty by 2030, we must help the 50 million people a year to escape from poverty. This will require extraordinary efforts to make growth inclusive, and creating job opportunities for the poor, and investment in human health and education, and to ensure that growth is sustainable for future generations ».

It is known that the meetings of the spring of each year, witnessing a rally of thousands of government officials and representatives of the private sector and civil society organizations, journalists, and other interested observers, in Washington, DC to attend the Spring Meetings of the World Bank and the International Monetary Fund. Topping this event meetings of the Development Committee of the World Bank and the International Monetary Fund, and the International Committee of the Monetary and Financial Committee of the IMF, in order to discuss progress on the work of the Bank and the Fund. And also hold seminars, regional briefings and press conferences and a lot of activities that focus on the global economy and international development and global financial markets.


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