154/YOUR MONEY OR YOUR LIFE!
guarantees, training of additional qualified staff, and, when
possible, privatisation and division into several competing
companies.Measures to be Avoided
The first precautionary measure to take is that of avoiding lenient
policies in times of prosperity, since they create rights that are hard
to challenge later on.
Many inhabitants of slums and poor neighbourhoods feel
resentful and excluded in relation to the rest of the urban
population. Looting and pillage of shops in wealthy neighbour
hoods are outlets for these feelings. When a stabilisation measure- subsidy cuts, for example - leads to a sudden increase in the cost
of basic items, these sectors of the population react with violent
displays of their desperation. Indeed, such measures brutally lower
their already very low standard of living to a point where the poor
have nothing left to lose.
Following the example of Morocco in 1983-84, the prices of
intermediate goods should be increased first, and not those of basic
items consumed by poor households. If the prices of basic goods are
increased, this should be done with moderation (less than 20 per
cent at a time) and spread out over time.
Teachers' Strikes: Innocuous were it not for the KidsTeachers' strikes are of no direct concern to the government, but
can be indirectly dangerous in as much as they give young people
the time and opportunity to demonstrate.A Winning Strategy for Cutting Salaries: Divide and Rule
As part of a discriminatory policy aimed at avoiding a united front
between all state sector workers, bonuses in only some
departments can be eliminated. Of course, it is not advisable to
eliminate bonuses to the army and police during difficult times
when their services may be called upon.
Politically, nothing is more dangerous than implementing all-
round measures to deal with macroeconomic problems. If state
sector salaries are reduced, for example, they should only be
reduced in one sector, while their nominal value is frozen in