As such, 2011-12 is likely to see reforms in the public services in the region to create greater cost economies. Prompted by multilateral institutions, emphasis has been placed on public sector management to reduce costs and sizable allocations continue to be dedicated to debt servicing. This was particularly the case as large fiscal imbalances and high and rising debt overhang continued to plague the regional economies. What is instructive here is that expenditure is quick to rise when external revenues increase, but slow to adjust when external revenues fall. That is because increased fiscal expenditures are often associated with job creation activities. As a result, 2011-12, can see the regional governments trying to unwind a great deal of the expenditure commitments which may consequently have adverse effects on employment and poverty levels. Unless there is a strong recovery in the external position, many regional economies would continue to face challenges with respect to generating new jobs and economic growth as governments come under increasing pressures by multilateral institutions to embark on austerity measures through restraints on expenditure and public service reform.