The Kyrgyzstani Presidential Elections: Atambaev’s Challenges. EUCAM Commentary No. 21, November 2011

After much anticipation and anxiety about the presidential elections in Kyrgyzstan, there is a feeling of relief that Almazbek Atambaev won the contest with an overwhelming majority, making a second round of elections unnecessary. The presidential race passed off without violence and unrest, which many in Kyrgyzstan consider an achievement in itself. The scale of Atambaev’s majority took many commentators by surprise as some had predicted a low turnout and a strong oppositional challenge. But according to the Central Electoral Commission, the turnout was 61.28 percent and Atambaev gained 63 percent of the votes. The elections were observed by 792 international observers from 56 countries. Although international observers have criticized electoral irregularities, pointing to incomplete voter registrations and ballot stuffing, overall the elections were assessed as encouraging.

Les enjeux de la libéralisation des comptes de capital dans les pays du sud de la Méditerranée. = Challenges arising from Capital Account Liberalisation in the Countries of the South Mediterranean Region. MEDPRO Technical Report No. 11/March 2012

This MEDPRO Technical Report confirms the importance of commercial openness and macroeconomic performance (i.e. the control of inflation and stability of current account balance and exchange rate) on growth dynamics in the south Mediterranean countries. In particular, the positive impact of capital account liberalisation is conditioned by the imperative reinforcement of institutional quality, country risk reduction, and government stability. An examination of the Tunisian case shows that only sectors subject to tariff dismantlement within the framework of the Association Agreement with the EU appear to benefit from capital account liberalisation. Furthermore, the report shows that a scenario of capital account liberalisation requires the anticipation of monetary policy reaction functions. It follows that the mechanisms for interest rate adjustment, or inter alia, the interest rates’ reaction to price fluctuations, are weakly volatile. In turn, the analysis shows that an active control of inflation mismatches occurs essentially through exchange rate corrections, thus highlighting the greater interest central banks have in exchange rate stability over real stability. A capital account liberalisation scenario would hence impose a tightening of monetary policy.