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 believe you to be a brave and a skillful soldier, which, of course, I like. I also believe you do not mix politics with your profession, in which you are right.”
—Abraham Lincoln (1809–1865)
“All politics takes place on a slippery slope. The most important four words in politics are “up to a point.””
—George F. Will (b. 1941)
“The average educated man in America has about as much knowledge of what a political idea is as he has of the principles of counterpoint. Each is a thing used in politics or music which those fellows who practise politics or music manipulate somehow. Show him one and he will deny that it is politics at all. It must be corrupt or he will not recognize it. He has only seen dried figs. He has only thought dried thoughts. A live thought or a real idea is against the rules of his mind.”
—John Jay Chapman (1862–1933)