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:
“The Germans—once they were called the nation of thinkers: do they still think at all? Nowadays the Germans are bored with intellect, the Germans distrust intellect, politics devours all seriousness for really intellectual things—Deutschland, Deutschland Über alles was, I fear, the end of German philosophy.”
—Friedrich Nietzsche (1844–1900)
“While you’re playing cards with a regular guy or having a bite to eat with him, he seems a peaceable, good-humoured and not entirely dense person. But just begin a conversation with him about something inedible, politics or science, for instance, and he ends up in a deadend or starts in on such an obtuse and base philosophy that you can only wave your hand and leave.”
—Anton Pavlovich Chekhov (1860–1904)
“Europe has a set of primary interests, which to us have none, or a very remote relation. Hence she must be engaged in frequent controversies, the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves, by artificial ties, in the ordinary vicissitudes of her politics or the ordinary combinations and collisions of her friendships or enmities.”
—George Washington (1732–1799)