Unemployment hit a record high before the pandemic whats gone wrong for an economy that emerged from the 2008 financial crisis in a strong position. When you try to reinvent the wheel but turns out you may simply be the Worlds Largest taxi firm is this the end of the gig economy into fights and labor laws and courts around the world. The world economies are moving away from fossil fuels right now being an Oil Producing nation is a tricky proposition burning through money set aside for a rainy day and borrowing money from International Investors to make sure you can pay your bills its also a time many Big Oil Companies are thinking about leaving more oil in the ground many countries have failed to wean themselves off Oil Struggling to diversify their economies oil revenues in the middle east and north africa fell from over one trillion dollars in 2012 to 575000000000. 20. 19 thats according to the i. M. F. And this year middle east produces are expected 270000000000. 00 less than oil revenue at the same time middle east oil exporting economies are expected to contract 7. 3 percent just as an example the biggest economy saudi arabia is predicted to have a budget deficit of 112000000000 dollars this year which is a record according to saudi vestment group the government has tripled value added tax from 5 percent to 15 percent and has cut its cost of living allowance for state employees from june of this year that amounted to about 267. 00 a month for 2 thirds of the countrys employees still saudi finance minister Mohammad Dahlan says the kingdom may have to borrow 60000000000. 00 to cover the huge budget deficit saudi arabia isnt the only country struggling while prices trading around 40. 00 a barrel that means countries like algeria a stretch to say the least it needs oil at 157. 00 a barrel just to make ends meet the only nation that can balance its budget at 40. 00 is qatar so can the really see the writing on the wall an end to the age of oil is coming well there is hunter castro met with jihad as or in washington d. C. He is the director of the middle east and Central Asia Department at the International Monetary fund she began by asking him our middle east Oil Exporters doing enough to diversify. Well diversification has different meanings you have the fiscal diversification and countries in the d have already started that with the introduction of the value added tax as well as also other fiscal measures some bearing and in process of doing this we encourage them to accelerate that there is also the u. K. Sure. Shore soul d vision 2030 and other medium term programs government has already started to use that and the 3rd level of diversification the diversification off economic enablers or i would say a driver for growth and technology for example. Is one area promoting and developing is also another avenue where countries in the last few years have introduced certain number of programs but we have also to cognize that diversification is a long process and this process had made it more difficult with the we think that Going Forward what is important is to accelerate the investment in technology have an environmental led growth and also improve Business Environment and those 3 elements with investing in education investing in health care will allow those countries to have a healthy and strong diversification programs what are the hurdles for a diversification why is it such a long process because you are in fact investing in a long cycle you need to have enablers for that Human Capital is an important they mention and it takes time to do this you need to adjust some of the laws labor laws and also especially if you are investing in start ups. This takes time for those. New ventures to grow but those are the steps that goes in the right direction and this is has to be done dynasty weighed improving some all. The doing Business Indicators and also investing and. Investment in technology and investment in. Green energy and Green Recovery with this pandemic. While prices still at a very low range what are your Growth Prospects for these middle eastern countries. Those 2 shocks led to one of the most severe crisis that beijing has to endure in less than one year and we saw a drop in on Economic Activity that what not seen in the last decade. Of course government reacted very rapidly in order to address. Impact on lives and livelihoods by introducing certain number of measures to protect the life of people through social distancing and other health care measures in patterns to that government have also initiated certain number of fiscal and monetary stimulus in order to address them package of this crisis on livelihood of people on Economic Activity and also in providing liquidity to the Financial System this has had but yet we expect growth this year to be negative on average by more than 5 percent of course its different between countries and Oil Exporting Countries where more affected than the old importing countries you mention the value added tax thats a new thing for some of these countries how is it being implemented and so far would you say its working to fund these governments as you know there are 3 countries who have already introduced saudi and bahrain others are preparing it proved to be simple to implement and their revenue impact. Is going to be acceptable it came at a time where the economy was not growing fast and therefore it may have had an impact when it was introduced but this is a step in the right direction diversify the source of the. News it helps also introduce a tax that is new to the sick totally and also it helps create some discipline in the way Public Resources are the use of course this is a step in the right direction but its not the only step that is needed. And then if we do have a 2nd wave of cold air in the middle east do you think these economies can serve ryan and how. Well the 1st wave showed us that countries with efficient in managing the 1st way they have introduced swift lease strong and stringent measures to protect lives and those who started early were able to open up earlier. And also we saw an investment in the Health Care Infrastructure and this is something that. Going forward what is going to be important is how to balance between opening up and protect the lives how to make sure that some of the services. Education is an important one delivering Public Services as well as also helping some of the sectors that were hardly hit like does a transportation to to cover and above all is how to help balance to get. Into the new sectors of the economy and then with course we have the Oil Importing countries we have egypt and jordan and lebanon how do you think theyll fare well here i think each country is different of course the drop in oil was used for them on reducing the cost of energy but on the other hand reminiscences investment flows and tourism flows went down each country has its own i would say framework off actions that is needed Going Forward countries who have introduced reforms like egypt were able to addressing the impact of the keep the economy functioning others need like lebanon on. A stronger form agenda in order to restore confidence and address one of the most severe crisis that lebanon has endured over the last decades 11 on does have a new government do you have confidence that this government is capable of resolving the crisis and taking lebanon out of debt and what role do you see the i. M. F. Playing in achieving. As you know the i. M. F. Is helping lebanon and giving these people and we are now looking forward for the formation of the government to engage again with living on with the peace and order to see what are the programs. And how the fund can. Thank you very much for joining us thank you. South africa could be heading toward a debt crisis if it doesnt rain in its spending right now thats a difficult proposition for a nation that needs every penny to combat the pandemic the country has already agreed to a loan of more than 4000000000. 00 from the International Monetary fund and as is the case with all the ones from the lender of last resort it comes with strings the biggest string of all is a debt to anchor thats like a promise not to increased it to unmanageable levels when it plans its budget if it doesnt rain in spending it could soar to 140 percent of g. D. P. By the end of the decade this year debts could rise to 90 percent of g. D. P. The bargee or dash the more money you pay in Interest Payments which means there isnt enough money for services or help to create drops with unemployment running at more than 30 percent the country is also grappling with another problem corruption under former president jacob zuma his rule of 9 years almost 30000000000. 00 was allegedly new shit from the stage thats according to government estimates that money right now would be very useful as unleashes a much needed 30000000000. 00 Stimulus Program to combat the covert 19 economic crisis. Well joining me now from johannesburg Islam Keller Patrick monday even keller is a thing electra at the johannesburg based school of economics and finance university of the witwatersrand thank you for your time going into the Global Financial crisis in 2008 south africa had recorded a Budget Surplus it came out with a strong Balance Sheet now its on the verge of a debt crisis what went wrong in those he is a software guy had a half hour to offset the new craze is that he concedes unfortunately for the offer to go because his net sheets and the golden political change with zuma together with the left led by the Congress Party especially a function of the n. C. As well as the huge who are stuck in big and therefore decided to lament a state led driven program under the new code page and in the process also destroyed and they pick posed institutions such as the president was very as well as as so easy for president if you do a. Page on and the rest of those around him with science but it wasnt all just corruption though i mean can we really put it all down to that misappropriation aware that other factors at play. There are the feds tons. At the local are new to fed and bt also did destroyed the capability of the state so this state was shipped out of kuwait believe it so what we saw was that not only was corruption a part of code project but indeed was only saw a destroying of some of the capability that had been built by the black government says 994 therefore the so called ups of institutions from local levon where there have been several students are forced because they still cannot meet i walked up to get water you cannot to me said these and refused to give already so its been a crisis that was human made which is zuma fiction so this kind of corruption couple are to leave and incapable state as well as a very difficult period to our own destruction of eskom where this economy was built on mining in any cheese and eskom in my ability to give our energy the ever wes and. The economy and together with the corruption says rumi see that because it double edged sword to with there was corruption and as a lesson on one side on the other side there was just a collapse of Institution Due to state in a couple and lack of capabilities and then of course we have unemployment which has soared to 30 percent but that was going up before the coronavirus pandemic taking rat into account where do you see the country headed. The country is facing huge challenges we expect with a corporate 19 and implemented often a couple who should be about 40 percent which probably will be among the highest among leaders Income Countries and many people have been pushed into formality and in the process often for muddy choose their own social pathologies because you could be unemployed and they cannot scrape through. And other forms of violence increases that is why is that offer you guys one of the hi pam arrayed countries but also very vibrant countries in the world. As i mentioned earlier the government has to introduce a debt anchor as part of the i. M. F. Program what else is required by the i. M. F. And how is the country going to go in making this a crime. And then if expect south africa to undergo huge structural Economic Reforms as specifically the existing support of state owned enterprises who all of them need cash injection from eskom today newly built south africa no established to just fucking 2 to decide African Broadcasting Corporation so thats one area the 2nd is around telecommunication where this 8 has kept the spectrum and has that difficulty of us communicating in this interview and 3rd is about huge concentration in the economy but not the in areas where the stage is dominant this is transported to just kick this is power the Energy Generation where they stayed true as countries is rid of government and so these reforms require the state to play and maybe an environment in that process hopefully allow private sector to come in and 5 and succeeds however we know that because of the state having these assets its unlikely to move at that pace if you like to because of the step in tests such as cage unknowns and the communist therefore i think this petition is all that i am and to encompass the awesome board i put in dead tonight so that for done weve found itself fading because its going to lead to mustique action and evolved because its been seen by brought us as austerity so i dont i doubt that i am ever will find these process is being met by the southern government who have spent 7 government to get people interested as an end up having to review and go a bigger such an Adjustment Program because if your banker changed cept those changes reste i. M. F. Expects all of them with the loan debt given as a football and that a 1000000000. 00 in the possums ok the 30000000000. 00 stimulus package proposed by the government what impact if any do you think that will have on the economy. Its been a very sad story about that puck a just that it be you dont remember that shit didnt you on of that 50 bjorn was meant to be in got on t. V. Bet by the government and the South African design of bank. Only about 15 percent of that has been spent therefore meaning that many corporations have been ever left alone then of course ups theyve been destroyed and sickened by the puck of that offensive beyond that to mention whats going to be part of that of the total and equipment that i mentioned before going to be going to come from them ads which have just come in now so its not because it does best it and others. Come from the budget lines which already been announced in february and you know that to those theyve been kept because in the process that i was a lovely guy has reported that theres been a huge corruption way money meant for has said this has been kept up to me spends. As a for dad because that corruption has led to many people dying sloth or god or luna competitive thames suffer the ga has done fade in thames off their heads due to call the 8 however the fed that the money meant to spend went to Court Options and peoples pockets than protection protective you could mend and otherwise is a disaster for suboxone. Well have leave it there for time thank you so much for your time Kelly Patrick monday appreciate it thanks so much thank you the u. K. Supreme court is hearing a case that could bring an end to the socalled gig economy the appeal was brought by after drivers won the right to be recognized as workers and not as independent contractors who has argued that its a Technology Company that connects drivers and riders in a separate case in california and rival lift have been ordered by a judge to classify drivers as employees its just one of many cases globally drivers and unions claim millions of people in the great economy have insecure contracts that dont entitle them to sick can tolerate pay many are unable to save for retirement because of the nature of the work. But doing me in now from london by skype his neocon very neil is the chief executive officer of the recruitment and Employment Confederation in the u. K. Thanks for your time neil his Business Model could not just be damaged but appended ready if the court rules against him saying yes actually drive is our employees one side of the debate do you come down on especially considering i mean if this Business Model changes who knows what it will mean the size of the company its profits its number of drives so well thank you pleasure to join you i think this is a really important case because what we have here is a business a neighbor who are doing something new an app based. Right platform but of course essentially in many ways it is taxi company and there are really strong established rules in the u. K. Fool when someone is working for themselves and when someone is actually a worker working for an employer and i think what we are has learned through this case is that those rules are. Are inflexible for a reason and i have was oh i was not surprised when the when the initial case phoned for the claimants because in reality you cant just say someone is self employed there are a range of tests in english law that are about the type of work youre doing and i think if you look across the the that work by and large most people on an