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:
“A baby changes your dinner party conversation from politics to poops.”
—Maurice Johnstone (20th century)
“The word “revolution” itself has become not only a dead relic of Leftism, but a key to the deadendedness of male politics: the “revolution” of a wheel which returns in the end to the same place; the “revolving door” of a politics which has “liberated” women only to use them, and only within the limits of male tolerance.”
—Adrienne Rich (b. 1929)
“The newspaper reader says: this party is destroying itself through such mistakes. My higher politics says: a party that makes such mistakes is finished—it has lost its instinctive sureness.”
—Friedrich Nietzsche (1844–1900)