Economic independence first: no to the new subordination in the name of the “reform” d. ALAA IMAD AL -DIN AL -BADRI
In a world in which economic crises increases, the importance of financial independence and economic sovereignty increases, and although the International Monetary Fund is often presented as a rescue destination during the crisis period, many experiences have proven that its interference in the economies of developing countries often leads to more dependence and weakness and not to resumption or growth.
The fund has lost its characteristic as a neutral international destination and has become a hostage to the will of a few large countries which lead its policies to serve its strategic interests, and not the interests of countries with economically difficulty, and therefore the “economic reform programs” imposed by the fund, and the reform numbers “imposed by the fund.
External loans are the borrowing and austerity trap, the paradox is that the solutions provided by the fund are similar from one country to another, regardless of local contexts or social conditions, the austerity of lifting support, privatization and liberalization of the exchange rate between countries and does not deal with real causes of crises.
But on the other hand, there are countries which have chosen to follow a different path and which depend on themselves the conditions of the fund. The most important of these countries was perhaps Malaysia in the late 1990s. In 1997, Malaysia had to face a stifling financial crisis in what was known as the Asian tigers crisis, while countries like Indonesia and Thailand have recourse to the International Monetary Fund and broke its difficult conditions. Malaysia decided to direct the Prime Minister at the time. Mahathir Muhammad must reject these diktats.
Instead of borrowing from the fund, Malaysia has frozen its exchange of foreign currency on foreign markets and has imposed restrictions on short-term capital and refused to float its currency and has developed an internal reform plan which is based on the stimulation of the local economy and the use of self-resources.
And the result? Malaysia has recovered faster than the others and maintained its economic sovereignty and avoided the social collapse of other countries which have undergone the conditions of the fund. Malaysian experience shows that there are real alternatives to the international monetary fund and that self-realization is not a slogan but rather an applicable strategy provided that political will and a clear vision are available.
Consequently, the government of hope must reconsider this path and start developing an independent national economic strategy based on:
1. Dependence on internal resources and use them sustainable.
2. Motivate local investment instead of accumulating debts.
3. Reduce corruption, financial waste and lead expenses to the producer sectors.
4. Development of industry and agriculture to reduce import dependence.
5. Build a fair tax system that obtains income without crushing the poor classes.
The path of economic independence is not easy, but it is the only option to achieve real and sustainable development and the exit of the IMF coat is no longer a luxury but a national necessity which avoids the years of suffering of peoples and guarantees them the right to draw their future by their will.
