The Lure of Easy Money

Editor’s letter- Dina al-Wakeel

In a blatant challenge to Western nations that have long dominated the global financial system, the BRICS emerging economics have decided to establish their own $50 billion development bank. Noble as the idea may be, its financial canada goose Calgary Jackor help could prove canada goose Chilliwack Bomber to be a further millstone around the neck of countries like Jordan, which appear to prefer taking out loans instead of taking tough decisions to tackle lingering structural economic problems.

Three years ago, at the height of the Arab Spring, the GCC created a $5 billion fund to help Jordan carry out some much-needed infrastructure projects. Yet to date, only 20 percent of the fund has reportedly been put to use, and the rest languishes in Central Bank coffers.

We’ve been told this peculiar lack of spending was down to the fact that our officials have failed to provide GCC countries with feasibility studies for various canada goose Chilliwack Bomber projects awaiting funding. We also accepted a $2 billion loan from the IMF, and still find it hard to live up to our end of the bargain canada goose Chateau Parka by carrying out real economic reform, like passing a fairer tax law. Now we’re even getting wind of reports that the government is after a $200 million loan from Japan to prop up the budget.

Yes, more often than not, our government prefers signing up to loans to help finance its budget deficit. Any calls to look for long-term solutions to persistent problems, like our bloated public sector and tax evasion, fall on deaf ears.

It’s truly a shame that instead of fixing our economy and operating within our means, we decide to add to our burgeoning debt, which is now almost JD20 billion. It’s not that we are commending the work of the IMF or the World Bank, whose methods and intentions remain questionable, but easy money means an easy way out, and that shouldn’t be the basis of any economy.