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:
“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)
“All you can be sure about in a political-minded writer is that if his work should last you will have to skip the politics when you read it. Many of the so-called politically enlisted writers change their politics frequently.... Perhaps it can be respected as a form of the pursuit of happiness.”
—Ernest Hemingway (1899–1961)
“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)