Unleashing Growth Potential in the Middle East


By Masood Ahmed

Recent popular protests in the Middle East and North Africa region, although likely to have a negative economic impact in the short run, might actually help to unleash the countries’ long-term growth potential.

By providing the impetus for reforms, these events may encourage better governance, greater transparency, and more competition—in other words, tackling many of the constraints that have held back progress in these societies. Continue reading

Quo Vadis México?


By Nicolás Eyzaguirre

(Version in Español)

Ahead of my arrival today in Mexico with the IMFs Managing Director Dominique Strauss-Kahn, I can’t help but reflect on how things have changed for the better in Mexico over the past decade in the sphere of economic policy. At the same time, I am struck by the importance of the task ahead for Mexico: grasping the opportunities offered by the changing global scene.

Strong frameworks

Debt and inflation before the crisisMexico’s economic institutions have been very substantially strengthened. The balanced budget fiscal rule has supported fiscal discipline and a reduction in public debt. Moreover the structure of this debt has been radically improved—Mexico has created a deep domestic bond market and extended maturities. The introduction of inflation targeting has cemented the credibility of Banxico and fostered a reduction in inflation—that most unequal of taxes on the poorest—to low single digit levels. Meanwhile, the deep commitment to the flexible exchange regime has created an important safety valve for the economy. Continue reading

More than 18 Million Jobs Needed!


By Masood Ahmed

(Version in عربي )

For the six oil-importing countries in the Middle East and North Africa region—Egypt, Jordan, Lebanon, Morocco, Syria, and Tunisia—high unemployment is a chronic problem. Unemployment rates here are among the highest worldwide. This can have enormous economic and social costs, with the potential for what the IMF Managing Director has described as a ‘lost generation’ of unemployed.

Figures for these six countries in the region, outlined in our October 2010 Regional Economic Outlook, are staggering. Continue reading

Follow

Get every new post delivered to your Inbox.

Join 777 other followers

%d bloggers like this: