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Nonetheless, the fiscal framework could be further strengthened by anchoring budgets in a medium-term setting and by managing the oil wealth with an explicit long-term, intergenerational perspective.
Policymakers have long understood the importance of structural reforms to boost job creation and diversify the economy, which is now compounded by the need to address supply constraints that contribute to inflation. As an outcome of the sweeping structural reforms already undertaken, the International Finance Corporation's Doing Business report ranked Saudi Arabia first among Arab countries for three consecutive years and twenty-third globally in 2008...
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