Mohamed Maait: IMF Prescription Usually Has Pains and Effects Impacting Some Segments of Society
Mohamed Maait explains the nature of IMF programs and their effects on society.
SUMMARY
Mohamed Maait explains that IMF programs are used when there are financing problems and involve reform measures that affect some segments of society to restore economic stability.
KEY HIGHLIGHTS
- The IMF does not offer its services proactively; countries turn to it during financing problems.
- All member countries undergo an annual review called the Article IV Consultation.
- The Fund’s reform prescription involves measures that affect people and include pains for some groups.
- The goal of reform programs is to restore economic stability, reduce debt, and control the budget deficit.
CORE SUBJECT
Mohamed Maait's Statements on IMF Programs and Their Social Impacts
Dr. Mohamed Maait, Executive Director at the International Monetary Fund and representative of the Arab Group, stated that there is "some confusion and accumulation" among citizens regarding dealing with IMF programs.
He added in televised remarks on Al Mehwar TV channel that the IMF does not offer its services proactively, but countries turn to it when facing a "financing problem," unlike the World Bank, which offers developmental financing for projects such as water, sanitation, health, or education.
He confirmed that all member countries of the Fund, numbering 190, undergo an annual periodic review called the "Article IV Consultation," whether they are in a program or not, noting that the Fund’s reform prescription is always linked to "measures that affect people."
Regarding some considering the Fund’s measures as "interventions," he explained that any government entering a reform program aims to restore economic stability due to a troubled economic situation.
He pointed out that the prescription for restoring economic stability with the Fund is usually associated with measures to reduce debt, control the budget deficit, manage subsidies, and the outcome of tax revenues, emphasizing that "the prescription usually involves pains and effects on some segments of society."
KEYWORDS
MENTIONED ENTITIES 4
Mohamed Maait
👤 Person_MaleExecutive Director at the International Monetary Fund and representative of the Arab Group
International Monetary Fund
🏛️ OrganizationInternational financial institution providing financing programs to countries facing financing problems
World Bank
🏛️ OrganizationInternational financial institution providing developmental financing for projects such as water, sanitation, health, and education
Al Mehwar TV
🏛️ OrganizationTelevision channel that broadcast Mohamed Maait's statements