Austerity

Austerity

Austerity : 

Austerity is a term that refers to the science of economics to government policy aimed at reducing spending and is often done through reducing public services. Often, governments resort to austerity measures aimed at reducing the budget deficit, and is often accompanied by austerity plans with a tax increase.Austerity general sense means the difficulty of living and roughness, due to insufficient human needs, which, in the political convention: is economic in nature a government program, aimed at reducing wasteful of increased spending on consumer goods; and encourage savings, and work to double the production; a cure for economic crisis, pass the country.Many of these policy states Among the most prominent of these countries are Spain, France, Britain, Morocco, Algeria, Sudan and Greece have exercised. Greece has seen many waves of overwhelming public anger about the application of that policy and depriving the people of the part of the well-being required. But the austerity policy is to remain the only solution to any country suffering from an economic problem, such as the budget deficit and lower revenue compared to the general expenses of the state to those countries that are increasing productivity and thereby increase revenue even come out of this crisis.Meaning austerity advocated by a number of economists to overcome the financial crisis in Egypt.Austerity (Austerity)Austerity name his metaphorical meaning in the economic literature in Arabic means to live the blind, and use the English words, imposing tight economic policies.The resort states to impose such policies when exposed to financial crises originating in poor financial management when internal and external debt in excess of the state ability to repay at maturity, which forces them to resort to austerity in public spending, and reduce or eliminate financial support to a number of social and health care activities.Austerity policy may not be a presumption of economic crisis.In some developing countries that do not have significant financial resources, and is one of the poorest countries, as long as they have resorted to the reduction or elimination of commodity support, and reduce public spending and the cancellation of development projects, and directing public spending to maintain their political requirements. Gulf Cooperation Council (GCC) difficult financial circumstances not exposed because of debts or the scarcity of financial revenue, since they are all oil countries, nationalism and entry is greater than public spending requirements, and it is all enjoy Bedjarat external or internal investments great addition to limited numbers of people, it which allowed frequent economic growth. However, the oil revenues are subject to fluctuations, so it was the second half of the nineties (1997- 2000) when the low price of a barrel of oil to $ 10 a barrel forced some states to austerity, and reduce public spending.However, it should be noted that to him, that the austerity policies imposed by developed countries (the United States and European Union countries) can contribute to civil society organizations and social security systems which may reduce the negative effects on its citizens. There is no in most countries of the developing world to ensure social security for its citizens financial support in times of austerity systems. The accuracy and fairness of the distribution of national income between citizens of countries affected to mitigate the effects of austerity policies.Europe tighten its beltSeveral European countries applying austerity measures severely reduce the debt and the deficit after that oversaw Greece into bankruptcy and threatened crisis capital markets, Britain was among the countries that embarked on the implementation of austerity measures, has announced cuts amounted to 25.6 billion pounds ($ billion) and as much as What triggered this procedure anger unions, but it pleased investors and businessmen, and included the British government's actions freeze new jobs in the public sector, and a reduction in the number of programs and inherited the new Conservative government for the Labor government, such as projects, technology consulting and contract information, and Denmark, which has one of the best social welfare systems in the world, she said, she plans to cut researchers rate jobs and reduce the privileges granted to the families and cut the salaries of ministers, as France announced a plan for the three years to freeze public sector spending starting in 2011, and said it plans to raise the retirement age to 65 years.The measures include increasing the sales tax and cut the salaries of workers in the public sector. The Greek government also plans to reform the pension system to reduce cost, and tighter controls on tax evasion. Ireland has announced two plans for austerity in 2009, valued at seven billion euros (in an effort aimed at reducing the budget deficit to 11.5% and 14.3% of the total output of the Irish in 2010.Include austerity measures to reduce spending on health care programs and cut the salaries of public sector workers, including between 5 and 15%, as the Italian government has announced austerity measures to cut spending by 24 billion euros (29.4 billion dollars) during the years 2011 and 2012, including the freezing of salaries in the public sector for three years, and cut the salaries of ministers and the imposition of taxes on stock and bonuses, and includes an austerity plan announced by Portugal, an increase in the sales tax by 1% to 21%, and a reduction in the salaries of officials in the public sector and increasing the tax on high incomes • added this plan to measures the government announced the implementation earlier this year include the delay of public investment and the sale of assets owned by the state, and cut the salaries of workers in the public sector, and in Spain, and approved by Parliament, the austerity plan to cut spending by 15 billion euros, including reducing the salaries of workers in the public sector , and the government announced last January for an austerity plan to cut spending by 50 billion euros, according to the plan will be to freeze the salaries of workers in the public sector, starting in 2011, as will freeze pensions in 2011 except pensions poorest citizens.The recommendations of the top twenty non-bindingDiffered American views of the European emerging countries on austerity United States rejects the idea of ​​scarcity of spending in European economies, which can affect the process of recovery of the global economy, as the American point of view based on the necessity of strengthening the global aggregate demand for goods and services so as to enhance growth hurt Move the wheel of the world economy, which is still stalled.Although the final statement of the summit of the Group of Twenty, held in Toronto, Canada on 06/27/2010 gavePriority to the protection and promotion of the economic recovery as well, and to lay the foundations for a strong, sustainable and balanced and fortify financial systems against risks growth. However, the opinion of the European Union and the United States view and emerging countries in the group another opinion. The summit recommended to continue to promote budgets that encourage growth and announce plans should be applied in developed countries, a non-binding recommendation to the European Union countries that are moving toward austerity.It recommended the summit to strengthen social safety nets and institutional reform management, and the development of financial markets, and investment in infrastructure and increase the flexibility of the exchange rate in some developing countries' markets.And further structural reforms in all member countries of the group to increase and support the growth prospects of countries.And to achieve further growth in global demand for re-balance.Balance measures must be carefully considered to support the recovery in demand in the private sector. It is possible that these measures harm if taken at the same time in a number of major economies to recovery. Also, it is also possible to weaken the absence of rationalization measures of confidence and slows growth.To take this balance in mind, the economies of developed nations pledged to prepare plans for budget would reduce the deficit by at least half by 2013 and stabilize or reduce public debt ratios over the gross domestic product by 2016. » The resort economies that suffer from surplus to reforms to reduce their reliance on external demand and focus more on national sources of growth. »Reformist Group program is based on four pillars: First, the framework of a solid financial legislation and to strengthen the infrastructure of financial markets by accelerating the implementation of strong measures to improve transparency and control shelter funds and rating agencies loans and financial derivatives in a consistent manner and without discrimination on the international peace. Second, active surveillance. That accompany the new rules more stringent strengthen monitoring and follow-up.Third, is to settle the issue of vital institutions. We are committed to creating and implementing a system gives us the ability and tools to restructure or settle all forms of financial institutions in crisis, without taxpayers bear the burden, and adopt the key principles of the application.The Fourth International Assessment and transparent preview of peer ». It can be said: The austerity and the deterioration of the ability of States to public spending policy comes from the lack of transparency and financial mismanagement and excessive public spending and debts.