WASHINGTON: The International Monetary Fund does not want austerity in Tunisia, and in fact proposed programs to protect the poor from the impact of economic reforms, a Fund spokesman said Thursday.
Several hundred people have been arrested in Tunisia since social unrest erupted a week ago, fueled by unemployment, corruption and austerity measures in the 2018 budget.
“The frustration the Tunisian people are feeling is understandable,” said IMF spokesman Gerry Rice, speaking on the anniversary of the 2011 Tunisian uprising that launched the Arab Spring.
However, he defended the institution against the “outdated” view that it is the IMF causing the suffering.
“Speaking for the IMF, we do not want austerity. We do want well-designed, well-implemented, socially-balanced reforms,” he said
He noted that the Fund has supported continuing subsidies for basic foodstuffs, raising taxes on non-essential items, and boosting funds for pensions and health care.
“At the end of the day it’s their program, it’s not something imposed by the IMF.”
Economic reforms, which include reducing the size of the massive public sector and reforming the tax system, is the best way to achieve “growth and fairness,” he said.
However, the program is seeking to address “very deep-seated, longstanding issues, so we can’t expect to see success overnight,” Rice cautioned.
The North African country is seen as having had a relatively smooth democratic transition since the January 14, 2011 toppling of President Zine El Abidine Ben Ali after 23 years in power.
But seven years later, anger has risen over new austerity measures after a year of rising prices, with protesters again chanting the 2011 slogans of “Work, Freedom, Dignity.”
The IMF has supported the country through a four-year, $3 billion loan program. The fund’s board is due to approve the third $320 million installment of the loan sometime in the fourth quarter, which would bring the total to $1 billion paid.
Tunisia faced a series of shocks since 2007 and saw its growth rate plunge in 2011, but has recovered since 2014, with the economy expected to show a 2.3 percent expansion in 2017 and three percent this year.
Rice said that despite the frustration of the Tunisian people, “reversing those reforms would be the wrong option at this stage.”
IMF does not want austerity in Tunisia, says spokesman
IMF does not want austerity in Tunisia, says spokesman
Related
UN chief condemns Israeli law blocking electricity, water for UNRWA facilities
- The agency provides education, health and aid to millions of Palestinians in Gaza, the West Bank, Jordan, Lebanon and Syria
United Nations Secretary General Antonio Guterres condemned on Wednesday a move by Israel to ban electricity or water to facilities owned by the UN Palestinian refugee agency, a UN spokesperson said.
The spokesperson said the move would “further impede” the agency’s ability to operate and carry out activities.
“The Convention on the Privileges and Immunities of the United Nations remains applicable to UNRWA (United Nations Relief and Works Agency for Palestine Refugees in the Near East), its property and assets, and to its officials and other personnel. Property used by UNRWA is inviolable,” Stephane Dujarric, spokesman for the secretary-general, said while adding that UNRWA is an “integral” part of the world body.
UNRWA Commissioner General Phillipe Lazzarini also condemned the move, saying that it was part of an ongoing “ systematic campaign to discredit UNRWA and thereby obstruct” the role it plays in providing assistance to Palestinian refugees.
In 2024, the Israeli parliament passed a law banning the agency from operating in the country and prohibiting officials from having contact with the agency.
As a result, UNRWA operates in East Jerusalem, which the UN considers territory occupied by Israel. Israel considers all Jerusalem to be part of the country.
The agency provides education, health and aid to millions of Palestinians in Gaza, the West Bank, Jordan, Lebanon and Syria. It has long had tense relations with Israel but ties have deteriorated sharply since the start of the war in Gaza and Israel has called repeatedly for UNRWA to be disbanded, with its responsibilities transferred to other UN agencies.
The prohibition of basic utilities to the UN agency came as Israel also suspended of dozens of international non-governmental organizations working in Gaza due to a failure to meet new rules to vet those groups.
In a joint statement, Canada, Denmark, Finland, France, Iceland, Japan, Norway, Sweden, Switzerland and the United Kingdom said on Tuesday such a move would have a severe impact on the access of essential services, including health care. They said one in three health care facilities in Gaza would close if international NGO operations stopped.
