The perfect solution stimulate the private sector
BAGHDAD - A follow-up to the morning
of the report of the International Monetary Fund that the Middle East and North Africa region can use the savings wisely formed in recent years at the time of high oil prices, as it can borrow from the financial markets to ease the adjustment. However, these preventive tools alone will not suffice and it would be necessary to conduct a difficult additional budget cuts in the coming years.
Masood Ahmed, director of the Middle East and Central Asia Department at the International Monetary Fund replied to a question that how can make these changes in maintaining social stability and limit the impact on growth? He said that the reduction of public spending is not easy for any government, but it is particularly difficult for many of the Middle East and North Africa Petroleum Exporting where oil revenue engine for economic growth of countries have also formed the basis for employment density in the public sector and to provide generous social transfers and energy prices very low, He is stressing that if what has been prejudice to any of these advantages, the population Sesicar that there is a derogation of the usual rights, and then the solution in building awareness of lies and consensus on the need for change through measures designed precisely supported disclosure directed properly.
He continued beyond the spending and new tax cuts , it will be important to encourage and facilitate the work of the private sector in these countries, and private companies that help to diversify the economy away from oil activities. Some countries have achieved, especially the Gulf Arab states, significant progress in this regard.
In the United Arab Emirates, for example, oil represents only one-third of exports, while providing thriving in the field of logistics, trade and tourism activities necessary prevention worker at a time when oil prices fell. There are other countries should play a greater effort to the business climate becomes more support for local and international business.
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