The IMF’s outlook for the MENA region

 
The IMF’s outlook for the MENA region has become over the years some sort of a report of a year’s economic policy result assessment of each country. Generally, and despite the on-going unrest in parts of the Arab world and in its neighbouring countries, the near-term economic outlook is very much subject to uncertainties of the global economy. Lower oil prices and production volumes are felt to have led to obviously lower growth in 2017 for most of the region’s oil exporters. These latter have over time past given some boost to the economies in the region.
The role of the International MonetaryFund as an overseeing organisation is undeniably helping to have a view at one’s country’s performance from as it were a certain distance. As a global organisation, its main function is to help stabilise exchange rates and provide loans to countries in need. It has previously in its Economic Overview of the MENA countries came up with the following . . . .

Amendment to the Law on Currency and Credit in Algeria

Would an amendment to the law on currency and credit in Algeria together with the introduction of unconventional funding impact the economy with inflationary risks and opportunities reduction?
A draft amending the law on money and credit, allowing the Bank of Algeria to “directly” lend to the Treasury, was recently adopted by the Council of Ministers. Moreover, the Government notes that the recovery of the budgetary balances is dictated by the constraints imposed on public finances and the use of exceptional and transitional (for a period of five years) methods to allow non-conventional finance, including direct funding of the Treasury via the Bank of Algeria.

Algeria in Need of Foresight and Adaptation Strategies

A surprising appointment of a New Prime Minister was decided upon yesterday by the presidency of the republic in replacement of the previous three months old government.
Any project is necessarily represented by political, social and economic forces otherwise it would be doomed to failure. The major challenge for Algeria at this conjecture would mean Algeria in need of foresight and adaptation strategies to implement operational instruments capable of identification so as to anticipate changes in the behaviour of the economic, political and social actors at geostrategic level.
There is a dialectic link between development and security, because without sustainable development there is necessarily increase of insecurity that has rising costs. Algeria per the reckoning of many international experts has the full potential, subject to far-reaching reforms, to establish a diversified economy responsible for the creation of sustainable jobs and therefore lead towards more stability not only of the country itself but of the entire region.

Saudi’s riches conceal lack of decision making

Saudi’s riches conceal lack of decision making on every single item of the country’s main current worrisome concerns. For instance, in Keep OPEC out of Wall Street published by Journal of Energy Security of July 19, 2017, we were informed that for the past several months two of the world’s leading stock exchanges – the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE) – have been competing over the listing of Saudi Aramco, Saudi Arabia’s national oil company, in what would be the largest IPO in history. 

Algeria to fully play a major role in the region

A visit of Johannes Hahn, Commissioner for European Neighbourhood Policy and Enlargement Negotiations in Alger, Algeria today and tomorrow is notably to reiterate the EU support to the country in differentiating its economy.  This is in a way to acknowledge that Algeria to fully play a major role in the region, it is bound to reform.

So as per the European Commission, ahead of the mission, Commissioner Hahn said: “The European Union will continue to support Algeria in its efforts to diversify its economy and modernise its business environment. The EU-Algeria Partnership Priorities adopted earlier this year put a strong emphasis on economic matters. It is now time to translate these priorities into concrete actions and reforms”.

How to improve the Climate of Business in Algeria

This brief analysis is a synthesis of the Doing Business Report 2017 data compiled upto and as of June 1, 2016. The indicators are used within the context of Algeria to analyze economic outcomes of countries of the same calibre and identify the regulatory reforms of all legislation that are required so as the economies where they have been adopted and the reasons for which they have been implemented have born fruits. The question that such report brings to mind would therefore be about how to improve the Climate of Business in Algeria and how to go about it.  

In the meantime, the above mentioned report findings were that :

Starting a business
Algeria made starting a business easier by eliminating the minimum capital requirement for business incorporation.

Dealing with construction permits
Algeria made dealing with construction permits faster by reducing the time to obtain a construction permit.

Getting electricity
Algeria made getting electricity more transparent by publishing electricity tariffs on the websites of the utility and the energy regulator.

Paying taxes
Algeria made paying taxes less costly by decreasing the tax on professional activities rate. The introduction of advanced accounting systems also made paying taxes easier.

Human Brilliance, Ingenuity and Skills will always be needed

A brilliantly educational article of Brad Keywell with our compliments shed some light of what awaiting us in the near future.  This is positively a world where Human Brilliance, Ingenuity and Skills will always be needed. The Fourth Industrial Revolution is about empowering people, not the rise of the machines 14 Jun 2017 The world […]