Abstract
The issue of debt, and the impasse into which it has propelled many countries, is now at the centre of discussions on development strategies. It has become manifestly impossible to re-establish the essential equilibria, necessary for growth resumption, through sole use of structural adjustment policies. The proposed debt treatment, issued at the inception of the ‘crisis’ in 1982, has weighed heavily on the social stability and political security of numerous countries. It now requires new thinking. Debtors must be provided with the time and the means of a macroeconomic adjustment which would prevent short-term social shocks and would ensure, in the longer run, the conditions of sustained growth.
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Notes
Michel Chatelus and Yves Schemeil, ‘Toward a new political economy of state industrialization in the Arab Middle East’, International Journal of Middle East Studies, 16, 2 (1984);
And Michel Chatelus, ‘Policies for development: attitudes toward industry and services’, in Hazem Beblawi and Giacomo Luciani (eds), The Rentier State (London: Croom Helm, 1988).
On the effects of declining revenues on state-society relations in such economies, see Rex Brynen, ‘Economic Crisis and Post-Rentier Democratization in the Arab World: The Case of Jordan’, Canadian Journal of Political Science, 25, 1 (March 1992).
A very worthwhile, precise analysis can be found in A. Chevallier and V. Kessler, Economies en développement et défis démographiques: Algérie-Egype-Maroc-Tunisie (Paris: La Documentation française, 1989).
Among numerous works, see IMF, ‘Theoretical aspects of the design of fund-supported adjustment programs’, Occasional Paper 55, 1987. For redistributive effects, consult Heller et al., ‘The implications of fund-supported adjustment programs for poverty’, in IMF, Occasional Paper, 58, May 1988.
Ismail Khelik, Le Monde, 6 June 1989.
For details, see Central Bank of Jordan, Twenty Sixth Annual Report — 1989 (Amman: Department of Research and Studies, 1990) pp. 68–73.
Reflecting concern over the failure of the 1987 IMF agreement, however, only 15 per cent was written off immediately, with further cuts of 15 per cent and 20 per cent to be made in 1993 and 1994 after reviews of Egypt’s adherence to the new IMF plan. Middle East International, 31 May 1991, p. 13.
H. Michel and J.C. Santucci, Le Maghreb dans le monde arabe (Paris: éditions du CNRS, 1987).
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© 1993 Bahgat Korany, Paul Noble and Rex Brynen
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Chatelus, M. (1993). From the Mirage of Rent to the Burden of Debt: Adjustment and Insecurity in Arab Economies. In: Korany, B., Noble, P., Brynen, R. (eds) The Many Faces of National Security in the Arab World. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-22568-2_7
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DOI: https://doi.org/10.1007/978-1-349-22568-2_7
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