Speaking in Dubai on 9 February, IMF Managing Director Christine Lagarde slammed Gulf oil exporters for “short-termism” in policy formation at the expense of “critical but longer-term reforms in such areas as tackling high public wage bills, designing effective social protection systems, and getting rid of harmful fuel subsidies.”

Many Mena countries lack “budgetary credibility” with “large amounts of spending kept off-budget” as sovereign wealth funds directly finance projects outside the normal budget process. She says this encourages corruption: countries should issue “more comprehensive budgets based on realistic forecasts.” (CONTINUED - 360 WORDS)