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Economic Reform in Maghreb Countries: Liberalization and Privatization
 
PIIS032150750012215-8-1
DOI10.31857/S032150750012215-8
Publication type Article
Status Published
Authors
Sergey Tursunov 
Affiliation: Insitute of Asian and African Studies, Moscow State University
Address: Russian Federation, Москва
Journal nameAsia and Africa Today
EditionIssue 1
Pages49-55
Abstract

The article focuses on the essence, results and consequences of liberal economic reforms in Morocco, Algeria and Tunisia in 1980-1990s. In the beginning of 1980s Maghreb countries were facing problems of huge public and external debt, volatile growth rates, negative balance of payments and productivity slump. It was the result of disbalances and growing inefficiency of public sector, which had previously been the key driver of the economic growth. At the same time, the world prices of raw materials exported from Maghreb countries declined dramatically, which led to growth of budget deficits and, consequently, public debt.

The situation urged these countries not only to look for loans to cover the debt, but to come through serious structural reforms. They consisted of standard measures that were usually a part of structural adjustment programs framework prescripted by International Monetary Fund and The World Bank to those who requested loans from these organizations. Those measures included liberalization of trade, capital movement, support for exports, financial competition, cost cuts in public sector and privatization. The reforms have had a significant impact on current economic development of the region and managed to solve some of the financial and economic issues.

The growth of the private sector has been successful, to a certain extent, the public debt started to decline and the economic growth stabilized, though at comparatively low rates. At the same time they failed to address major structural problems of the three countries and had quite adverse social implications. Generally speaking, the reforms haven’t made any difference for the role of the three countries in the global economy.

KeywordsMaghreb, North Africa, Morocco, Algeria, Tunisia, liberalization, privatization
Received11.02.2021
Publication date26.02.2021
Number of characters25828
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