S\u00e3o Paulo \u2013 The first deputy managing director at the International Monetary Fund (IMF), David Lipton, stated on Tuesday (27) that the countries of the Middle East and North Africa that are undergoing restructuring processes after changes of government need to seek economic growth through expansion of exports and through inclusion of private companies.<\/p>\n
Lipton stated, in an article published on blog iMFdirect, that the Arab nations have three paths to follow: that of economic deterioration and political disputes that stunt stability, that of reassertion of vested business interests that would take the region to stagnation or that of growth of a new economy through reforms promoted by the new governments. \u201cWhile the first two paths would be undesirable, they could come to pass. Needless to say, the third path, transformation, would be best.\u201d<\/p>\n
Recently back from a visit to Tunisia, Lipton recalled, on the blog, that it was in that country that the Arab Spring started, in 2010. He said that the manifestations and government changes that followed are the result of a call by the people not only for political, but also for economic changes. As was the case in Tunisia, Egypt, Yemen and Libya also changed governments. Morocco and Algeria lived protests that caused their governments to change economic policies. In Syria, Jordan and Bahrain, the opposition is facing the government. <\/p>\n
Lipton pointed out that the countries in the region are not going to grow or escape economic stagnation if the companies that operate there remain restricted to selling solely on the domestic market. He also stated that the countries of the Middle East and North Africa that do not export oil have also been showing themselves incapable of generating jobs to supply the needs of rapid population growth. <\/p>\n
In comparison, the deputy managing director at the IMF stated that the countries of the Middle East and North Africa that do not export oil have some 400 million inhabitants and, together, export US$ 365 billion. It is almost the same as Belgium, which has 11 million inhabitants. <\/p>\n
\u201cTo achieve broad-based and sustainable growth, the countries of the Middle East need to move away from state-dominated to private investment and from protected industries and rent-seeking to export-led growth and value creation. That\u2019s where the jobs will be,\u201d he said. The economist added that the private sector needs to become the main source of growth for the countries in the region, but that may only happen if companies have access to other markets. <\/p>\n
Lipton stated that each country should prepare an economic reform agenda and, in the process, promote participation of the entire society. \u201cReform plans, no matter how technically sound, cannot be imposed without broad popular understanding and acceptance.\u201d He defended that the international community should participate in the process by offering financing, economic guidance and market access.<\/p>\n
*Translated by Mark Ament<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
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