Politics
Suriname elected a new government in May 2000, but until it was replaced, the Wijdenbosch government continued its loose fiscal and monetary policies. By the time it left office, the exchange rate in the parallel market had depreciated further, over 10% of GDP had been borrowed to finance the fiscal deficit, and there was a significant monetary overhang in the country. The new government dealt with these problems by devaluing the official exchange rate by 88%, eliminating all other exchange rates except the parallel market rate set by the banks and cambios, raising tariffs on water and electricity, and eliminating the subsidy on gasoline. The new administration also rationalized the extensive list of price controls to 12 basic food items. More important, the government ceased all financing from the central bank. It is attempting to broaden its economic base, establish better contacts with other nations and international financial institutions, and reduce its dependence on Dutch assistance. However, to date the government has yet to implement an investment law or to begin privatization of any of the 110 parastatal, nor has it given much indication that it has developed a comprehensive plan to develop the economy.
Read more about this topic: Economy Of Suriname
Famous quotes containing the word politics:
“...to many a mother’s heart has come the disappointment of a loss of power, a limitation of influence when early manhood takes the boy from the home, or when even before that time, in school, or where he touches the great world and begins to be bewildered with its controversies, trade and economics and politics make their imprint even while his lips are dewy with his mother’s kiss.”
—J. Ellen Foster (1840–1910)
“From the beginning, the placement of [Clarence] Thomas on the high court was seen as a political end justifying almost any means. The full story of his confirmation raises questions not only about who lied and why, but, more important, about what happens when politics becomes total war and the truth—and those who tell it—are merely unfortunate sacrifices on the way to winning.”
—Jane Mayer, U.S. journalist, and Jill Abramson b. 1954, U.S. journalist. Strange Justice, p. 8, Houghton Mifflin (1994)
“Every two years the American politics industry fills the airwaves with the most virulent, scurrilous, wall-to-wall character assassination of nearly every political practitioner in the country—and then declares itself puzzled that America has lost trust in its politicians.”
—Charles Krauthammer (b. 1950)