He returned the International Monetary Fund in the recent period to play a major role in the Arab world, especially after agreeing last weekend to lend Egypt $ 12 billion, raising fears of a violent backlash against Arab governments that implement painful economic measures in return for the fund.
Since the late eighties and even the Arab Spring uprisings in 2011, was branded a fund in the Arab world that the West, which put pressure on countries to adopt austerity policies that impoverish their people arm, while benefiting foreign bankers.
After the riots in Algeria, Jordan and Sudan because of spending cuts that are made at the behest of the IMF procedures, it has avoided many of cooperation with the IMF governments, quasi a minister in Egypt this fund Balastmarian Britons who seized the Suez Canal.
Return Fund
But the fund returned again to offers in recent months, billions of dollars to Egypt, Iraq, Jordan, Morocco and Tunisia, also offers advice on the economic transformation of Algeria, the Gulf and the states, which urges them to impose value-added tax, the Fund has tried this time exposed himself in a new more flexible.
This return may be good news for investors who are waiting for a certificate from the trust fund up to invest in these countries, but at the same time, fund and partner governments subjected to the wrath of the people if the failure to resolve the deep-rooted economic problems.
Mohsin Khan, who headed the Middle East Department of the Fund in the period between 2004 and 2008, says the return to the region a thorny issue, because while the fund has the knowledge on how fiscal and external deficits reform, it -honh The economists are Aam- less familiar ways of reducing inequality and the creation of millions of jobs.
But Masood Ahmed, who took over the Middle East Department of Khan since 2008 and even today says that the Fund’s learned his lesson. Ahmed explains that the fund had in the past focused on the macroeconomic numbers only, but now he looks at other aspects that can affect the overall picture of the economy, such as poverty.
After the Arab Spring, Ahmed launched a public relations campaign to improve the image of the fund in the region, where he launched a blog in Arabic to explain the fund’s policies and meetings with politicians and journalists.
Unknown future
But this does not remove the risk to the fund, and will be the next few years a real test; Valkarz obtained by Egypt for three years, played for him to float the pound and raise fuel prices, it may be just the beginning of a long-term burden, and may be renewed upon him the end is also expected many of economists, Syria and Yemen will need to help when there are conflicts end.
In addition, the Fund will become between the horns of a dilemma, as the governments in both importing countries and exporting oil is reducing both social support and subsidies, it is expected to fuel prices rise again, and that new taxes imposed in many countries.
She says the first associates International Governance and Innovation Centre in Canada Basma Momani started writing a book about the fund that these data indicate that the Fund will not be able to avoid a political role, in these countries, which would put him to the backlash.
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