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 [nineteenth-century] young men who were Puritans in politics were anti-Puritans in literature. They were willing to die for the independence of Poland or the Manchester Fenians; and they relaxed their tension by voluptuous reading in Swinburne.”
—Rebecca West (1892–1983)
“Our family talked a lot at table, and only two subjects were taboo: politics and personal troubles. The first was sternly avoided because Father ran a nonpartisan daily in a small town, with some success, and did not wish to express his own opinions in public, even when in private.”
—M.F.K. Fisher (1908–1992)
“Politics is repetition. It is not change. Change is something beyond what we call politics. Change is the essence politics is supposed to be the means to bring into being.”
—Kate Millett (b. 1934)