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International Monetary Fund. African Dept.
This paper takes stock of Seychelles’ plans to manage climate change, from the perspective of its macroeconomic implications. It suggests macro-relevant reforms that could strengthen the plans’ likelihood of success. It highlights high public awareness and a body of existing sustainable development planning, which puts Seychelles several steps ahead toward preparedness. Next steps would be to ensure that climate change planning is integrated with the forthcoming National Development Plan. Disaster preparedness is a relatively strong point, but there is much still to be done—from improving warning systems to resilience building to contingency financing.
International Monetary Fund. European Dept.
This Selected Issues paper analyzes sustaining potential growth in Aruba. As in the other Caribbean countries, there are growing concerns in Aruba about the slowdown in economic growth over the past two decades and the consequent tepid outlook for potential growth. Tackling such concerns requires identifying the underlying factors. This paper presents an overview of Aruba’s economic growth performance since 1990, analyzes factors behind the slowdown, and discusses how potential growth can be sustained. It suggests that Aruba should aim to finance its renewable energy and other future growth initiatives sustainably.
DENNIS ANDERSON and KULSUM AHMED

RENEWABLE energy technologies are now being successfully used in numerous small-scale applications on a commercial basis and for some larger-scale power generation projects. For developing countries in particular, solar energy is an abundant and environmentally attractive resource, with enormous economic promise.

Harinder S. Kohli

The need for cheap, renewable energy is worldwide. One potential source of such energy is ethyl alcohol or ethanol produced from such raw materials as sugarcane, molasses, corn, and cassava. The author outlines the economics of producing ethanol and discusses the implications of its use as an energy source, especially in developing countries.