Mismanagement Put Jordan, Iraq under Mercy of IMF: Experts

تم نشره في Wed 25 October / Oct 2017. 12:00 AM
  • AlGhad’s Editor in Chief, Jumana Ghunaimat speaking at the Forum on the Implications of International Monetary Fund (IMF) policies in Jordan and Iraq - (AlGhad)

AMMAN —AlGhad— During a forum yesterday, Tuesday, on the implications of the International Monetary Fund (IMF)’s policies in Jordan and Iraq, AlGhad’s Editor in Chief, Jumana Ghunaimat, stated that “mismanagement is what put Jordan, the impoverished country with limited resource, and a rich country like Iraq, under the mercy of the IMF.

Ghunaimat explained that the last time Jordan implemented an IMF programme, 1989-2005, the economy made considerable improvements. However, recklessness in expenditure, short-sightedness and mismanagement has since derailed Jordan’s recovery.

Over the years, the government has been making the same mistakes over again, which is what brought us back to the IMF, she underlined.

Arriving at the target debt-to-GDP of 77 per cent requires more than just reforms, and it will take years, Ghunaimat highlighted.

Meanwhile, Jordan struggles with a significant budget deficit, high debt rate, and troubling unemployment and poverty rates.

On the other hand, the Director of the Ministry of Finance’s Studies Department, Abdul Hakim Shibli explained that the rise in debt rate is due to an external factor.

He underscored that this 20 per cent hike in debt-to-GDP is due to the regional situation which has affected Jordan’s oil supply, and subsequently the National Electric Power Company (NEPCO).

Notably, debt has increased from 75 per cent to 95 per cent in less than a decade.

As for Iraq, Advisor to Iraqi Prime Minister on Financial Affairs, Dr Mohammad Saleh, said that the IMF’s polices are “selective”.

Moreover, the Fund’s approach to economic-fiscal reforms completely disregards the humane side of the economy and society, he added.

“The IMF focus almost entirely on the fiscal component of the economy” Saleh noted, “The armed unrest in Iraq over a decade long is the primary factor in Iraq’s fiscal desolation, coupled with administrative corruption.”

Both Jordan and Iraq are dealing with the IMF’s coarse economic, fiscal solution.

While for various reasons, some are commonly shared, like administrative corruption and mismanagement.