The IMF and Algeria

[Deborah]

I was wondering what you guys thought about the IMF's interference with Algeria, and whether you felt that the restrictions imposed on the country (i.e. freeing up trade) has helped or hindered their possible growth. I myself am torn on the issue.

Thanks,

Deb

[dzrien]

It is hard to really grasp all the dimensions of the issue. I believe that it was about "salaries" - In one hand I understand IMF's position that low wages/cost will encourage hiring, and thus fight poverty, etc. On the other, if one looks at it differentlym for example: If I were to be ordered to pay child support, it would be in at most a 1000/month, but Micheal Jacson would be asked 100s if not millions ! - The daddy is rich, the kid is entitled!

Now, in Algeria's case, it's the Mama, i.e MOTHER LAND that's rich (Madona), so its children are entitled to priviledge !

It is more than established that Algerian natural resources revenues are not exploited by Algerian Engineering Cos., but foreign ones, with a government of incompetent but brutal which actually forbids people to seek work with foreign company operating in their land ! So the argument that the cash will serve a A SECURITY just doesn't hold ! It will be spoiled/stolen, and that's why Algerians feel that it needs to be spent now and by every one. So that's the political side !

Economically speaking, you probably know that there is economy without trade, and there is no trade without buying power - Buying power resides in revenue, i.e salaries !

That's the paradigm of a rich country with poor people !

I say let the ball roll !

More money in the junta's coffre means ability to buy human services and equipment for repression that keeps it in power !

Algeria doesn't need IMF, it need PENTAGON ! The corruption and contempt on citizen cancer has reached that degree of gravity that requires SURGERY ! Iraq style.

A notice for people to move their children away would help !