Hooray for Guinea

For three years I worked to try to help the government of Guinea to get an economic stabilization program with the IMF, but as they say, things did not work out. After I left in October 2006, the socio-political situation became very tense culminating with national strikes in January during which many people were killed by the security forces. The demand of the population was for a change of government and that happened. I wont go into all the details of how that was achieved.

The new government was made up of ministers who were all new to government, and mainly techocrats, including a good friend who became Finance Minister. Growth had been slow (1-2% a year) and inflation high (30-40% a year), and the exchange rate had depreciated rapidly. The new government set about improving economic performance. Most notably inflation was nearly halved and the exchange rate appreciated and has since stabilized. A first reward for a commitment to economic reform came yesterday when the IMF's Executive Board approved a new support program for Guinea (see details from IMF web site).

The money that comes with that support is only part of the benefit. Agreement with the IMF opens the door for other donor agencies such as the European Commission and the World Bank to provide direct budget support. That additional finance should help achieve many economic and social goals.

I wont go further than that at this stage. Guinea has had a history of slipping off the rails quickly, but I hope that this time the train will stay on its tracks long enough to give a solid base and hope for this country of 9 million very poor people.

For all my friends in Guinea I hope that this "present" coming ahead of Christmas will be a welcome gift.