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:
“I am in politics because of the conflict between good and evil, and I believe that in the end good will triumph.”
—Margaret Thatcher (b. 1925)
“Politics are for foreigners with their endless wrongs and paltry rights. Politics are a lousy way to get things done. Politics are, like God’s infinite mercy, a last resort.”
—P.J. (Patrick Jake)
“The one thing sure about politics is that what goes up comes down and what goes down often comes up.”
—Richard M. Nixon (1913–1995)