IMF cracks down on Lebanon over paltry 25 billion debt
bh | 07.11.2001 01:44
Lebanon's debt of 25 billion would be considered 'small change' in the wealthier nations but IMF says that Lebanon must do more severe 'structural adjustments' and privatization has not gone far enough, continuing its 'one size fits all' approach to economics
http://www.metimes.com/2K1/issue2001-44/bus/lebanese_deficit_plan.htm Lebanese deficit plan fails
Lebanese Prime Minister Rafik Hariri's plans to rescue the country from its crippling deficit received a serious blow when the International Monetary Fund warned that the government's much-touted privatization drive and soon-to-be implemented value-added tax simply weren't enough.
The final draft of the report, prepared by an IMF team assigned to
Lebanon, regretted "the lack of a more up-front adjustment
effort. We urge the authorities to consider an immediate
tightening of fiscal policy."
According to the Central Bank, the public debt reached $25.9
billion at the end of August 2001. The IMF projected the 2001
budget to be "roughly the same as 2000" – which ended at more
than 56 percent of GDP. The government, however, projected the
deficit at the end of the year to be approximately 50.8 percent.
More than $500 million in VAT is expected to be
generated each year. Some economists, however, have warned
that such revenues are completely unrealistic as long as the
country continues to slide into recession.
Finance Minister Fouad Siniora has fiercely defended VAT,
stressing that it is vital to reduce debt servicing.
Under pressure from both the IMF and the World Bank, the
government has been seeking new ways to boost the confidence of
international markets in the country.
some bankers feel that the
government may not be able to borrow more money because the
debt servicing will exceed the entire revenues of the state.
The IMF did, however, praise the banking sector, which was able
to sustain good profits despite the recession.
bh
Homepage:
www.awitness.org/
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myopia
07.11.2001 02:02
remember a few years ago when northern economies were 'restructuring' due to the lack of money
budgets were cut and services curtailed
trillions are spent each year on war hawking
and as for the rest
well according to the statistics during the 'Reagan revolution' the amount of money concentrated in teh hands of American capitalists soared from 22 to 42 per cent (just the kind of imbalance of capital that led to the depression)
Shortage propaganda is used to evade the real issues
I find it is always typical of what you might call 'right wing' apologists to ignore the ovvious
and always maintain that giant blind spot when discussing 'fiscal responsibility
and so on
remember 'do not touch the olive and the wine' (keep your eyes averted and your hands off of that great sacred golden cow' right ...
as I said such deliberate myopia is characteristic of that approach and I find it prevalalent in 'rightist' posts
for example you will never hear the IMF suggests much higher taxes on the wealthy or 'redistribution' of wealth to address the problems of extreme poverty and extreme wealth that exist in these poorer countries
they won't cough up the 25 billion, but rather the hospitals will be closed and so on ('structural adjustment')
discussing this issue while maintaining that myopia and that persistent blind spot is characteristic and something that needs to be addressed
bh