IMF criticizes governments "Arab spring"

The time on Monday, 15 April / 2013 08:33


Rabat / Mohammed Al Sharqi

Increasing criticism IMF governments that came after revolutions "Arab Spring" in a number of countries in North Africa because of its inability to implement financial reforms and economic, as the depth of the crisis and is threatening the sovereignty financial viability of those countries, especially in Tunisia, Egypt and Morocco, which has increased its dependence on financing and borrowing Foreign.

The fund in his recent reports that the North Africa and the Middle East, which was until one of the regions most dynamic economically and developmentally and qualified to be emerging economies, has become mired in a big deficit in the budget and the balance of external payments closer to the turbulent situation experienced in the eighties of the last century. The experts unanimously agreed that the indicators are not encouraging issued by governments in the region's non-oil give a bad signal to the economic and financial conditions difficult for these countries as growth would be affected by the financial crisis, will have a negative impact on the ability of those governments to address the problems of unemployment and social imbalance.

And negotiate Egypt and Tunisia since the loans from IMF estimated eight billion dollars, while Rabat got credit line preventive $ 6.2 billion late last year in exchange for the government's commitment half Islamic raise support for some of the goods and to continue reform programs and the strengthening of surveillance and Fiscal prudence.

And reduced growth in North Africa from an average of five percent by the revolutions to below three percent in last year's best.

Although the projected growth this year could exceed four percent, as a result of climatic reasons mainly improved agriculture, but financial difficulties limit the flow of foreign investment opportunities, especially from the EU countries which suffer difficulties are almost similar. And North African countries rely on external resources on international tourism, remittances, and foreign investment, a hard currency revenue decline caused the lack of monetary reserves and the depth of the problem of sovereign balance of payments.

Unlike the European countries that are close to overcoming the problem of inflation, which affected, the North African countries may face higher prices for some commodities basis in case proceeded governments to raise the price of fuel and butane gas and other materials are sensitive to reduce the budget deficit, which is the recipe proposed by the Fund on the countries of the region that extends from Jordan to Morocco, to overcome the financial difficulties and the return of stability to the macro-economic balances necessary for investment and financial flows.

He advised Monetary Fund head Moroccan government Abdelilah Benkirane reform "compensation fund" through the removal of subsidies for some consumer goods, and grants for disadvantaged groups in-kind assistance or service social, in an effort to reduce the budget deficit, which exceeded seven percent of GDP during the quarter the first of the year, and caused the cancellation of the government 15 billion dirhams ($ 1.7 billion) of government investment expenditure.

He believed the fund that coincided fiscal deficit with the trade deficit weakens monetary reserves and threatens the value of the currency, and reduces the competitiveness of the economy, has been hurt by economic reforms and adversely affect the Bisection credit bond, which suffer a rise in the foreign trade deficit amounted to 10.3 percent of gross salt, add to the decline reservists to cover less than four months of imports. The focus tips international financial institutions on financial balances priority even if it comes at the expense of purchasing power or social balances for the fragile.

This seems like a recipe addressed to more than one government in North Africa advise her fund to improve the business climate through absorption fiscal deficit, and accelerate reforms and simplification of procedures in order to attract more investment and stimulate growth through labor market flexibility to reduce youth unemployment, and provide a solid ground for the financing of the economy through tight control of Central Bank. Among the proposals announced rationalization of expenditures and increase good governance and modernization of administration and legislation and the establishment of social dialogue contributes to the civil society, trade unions and the private sector.

It seems to observers that the governments Arab spring day closer to the recommendations of the IMF than its predecessors, may increase the severity of these recipes with the need for governments to finance internal and external, as returned indebtedness to darken after more than 60 percent of GDP to near 80 percent in some States, in a time where unemployment and social difficulties ticking bombs that might threaten social peace to communities still have not recovered from the revolutions of the Arab Spring.


http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sl=ar&tl=en&u=http://www.uragency.net/index.php/2012-03-11-16-32-14/2012-03-11-16-35-12/19850-2013-04-15-08-33-06&usg=ALkJrhg4Wy3p9RolQ0q_9WrzWpMKucdo_Q