In the last issue of the IMF MENA Update in September 2022, the editor has reflected on the IMF’s conference in Rabat, Morocco organized last June by the Bank Al-Maghrib and the IMF in the run-up to the 2023 IMF-World Bank Annual Meetings in Marrakech.
‘’The discussions focused on inflation and how it has broadened beyond energy and food commodity prices in many economies. At that time, strict shutdowns in China weighed on growth and risked causing further supply chain disruptions. A further deterioration of the situation in Ukraine would increase human and economic costs, and higher-than-expected inflation could inflame social tensions’’. The editor mentioned.
The editor also articulated that IMF panel took a deep dive into the region’s tax systems in a new IMF staff paper. They found that although the region’s tax systems have evolved significantly, tax revenue as a share of GDP remains relatively low on average. Meanwhile, IMF continues to reckon that governments face immediate pressure to increase spending to protect the poor from inflation, improve health and education, build resilience to future shocks, and meet the United Nations Sustainable Development Goals.
It's clear that the gap is widening between IMF’s findings and actual economic situation in MENA region. Despite the economic hardship faced by most countries of the region to tackle immediate economic pressure and protect vulnerable citizens while bridging the gap between country’s productivity and tax revenues, the IMF offering is still lagging expectations to help countries’ easeness of growth and achieve equality. Therefore, many countries in MENA would probably miss their target towards achieving their SDGs by 2030.
In contrast, Saudi Arabia will be one of the world’s fastest-growing economies this year, as sweeping pro-business reforms and a sharp rise in oil prices and production drive growth. Its GDP is expected to expand by 7.6 percent, the fastest rate in almost a decade. Well, IMF could not remember mentioning that Saudi Arabia is ranked number 9 world highest CO2 emissions in 2020. Saudi Arabia leadership does not seem to pledge enough morally to become a carbon neutral country in the near future. IMF like many other international bodies might be facing difficulties to hold Saudi Arabia accountable for the regional carbon footprint, and cannot suggest ways of making the country paying for that economic misconduct. Many activists believe that Saudi Arabia must pay for the tax gap within the economies in MENA region.
IMF should be accountable and must practice leadership to keep fossil oil mass producers such as Saudi Arabia accountable for continuous oil production and allowing for more growth of carbon footprint in MENA region, otherwise the region would not be able to make it for 2030, as we do not have time.
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