Economic Reforms in MiddleEast and North Africa

The economic milieu in these countries reflected the need for empowerment. World Bank and the IMF took the initiative to address the economic issue of these countries and had has taken financial programs for assistance. The MENA conferences held every year aims at providing sound regional economic reforms for these countries in order to strengthen their economic potential. The chief objective of these conferences is to create a business-friendly climate through boosting of international and regional investment. IMF and World Bank strongly believe that the prime challenge faced by MENA countries is the improvement of the economic environment for private sector investment. Hence all the programs are designed to boost the private investment in this region.
The IMF reforms designed for the MENA region follows a well-calculated road towards global integration of these countries. In the beginning, the reforms will help to stabilize the macroeconomic conditions within the countries. The next step will be designing reforms that help to enhance the efficiency of the domestic economy. And finally, the countries will be competent enough to compete in the global markets.
IMF has assisted the countries in the MENA region with the ideas for improving the financial management of the countries. Some of the notable reforms implemented regarding this issue are the implementation of Value Added Tax (VAT) in the countries like Lebanon, Sudan and the Islamic Republic of Mauritania, implementing reforms for income taxation especially in the countries of Saudi Arabia, Yemen, and Pakistan.
Development of Financial Market
The financial market within the countries of this region needs a radical development. In order to address this issue, Financial Sector Assessment Programs (FSAP) has been launched in 1999 by the World Bank and IMF. Building up a resilient and well-regulated economy is imperative in order to establish macroeconomic stability. The FSAP which is a joint effort by IMF and World Bank was launched with the vision of boosting the efforts taken in these countries for financial soundness. According to the prescribed terms of FSAP, the IMF conducts the financial assessments of these countries to gauge their macroeconomic stability. According to the Financial System Stability Assessment (FSSA), probable risks for the country’s economy are found out and the nation’s ability to absorb macroeconomic shocks is assessed.
Improving Transparency and Governance
The joint effort of the IMF and World Bank to improve the economic conditions of the countries in the MENA region included considerable attention on the quality of governance that prevails there. The economic policies of these countries are examined by comparing them with the international set of standards. IMF publishes the reports after examining the countries on the Observance of Standards and Codes (ROSC). There are&nbsp.several aspects of this assessment, countries in the MENA region voluntarily participate in these assessments.