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Ms. Christine Dieterich, Anni Huang, and Mr. Alun H. Thomas
As labor market data is scarce in Sub-Saharan Africa (SSA), this paper uses household survey data to analyze the determinants of the gender gap in the labor market and its welfare implications for five SSA countries in multinomial logit models with propensity score matching method. The analysis confirms that education opens up opportunities for women to escape agricultural feminization and engage in formal wage employment, but these opportunities diminish when women marry—a disadvantage increasingly relevant when countries develop and urbanization progresses. Opening a household enterprise offers women an alternative avenue to escape low-paid jobs in agriculture, but the increase in per capita income is lower than male-owned household enterprises. These findings underline that improving women’s education needs to be supported by measures to allow married women to keep their jobs in the wage sector.
Ms. Doris C Ross, Victor Duarte Lledo, Mr. Alex Segura-Ubiergo, Mr. Yuan Xiao, Ms. Iyabo Masha, Mr. Alun H. Thomas, and Mr. Keiichiro Inui
This publication highlights Mozambique’s remarkably strong growth over the two decades since the end of the civil war in 1992, as well as the major challenges that remain for the country to rise out of poverty and further its economic development. Chapters explore such topics as the role of megaprojects and their relationship to jobs and growth; infrastructure and public investment; Mozambique's quest for inclusive growth; developing the agricultural sector; and building a social protection floor.
Mr. Paul Collier

Africa's Middle-Class Motor finds growing evidence that a recent resurgence in the continent's economic well-being has staying power. In his overview article, Harvard professor Calestous Juma says the emphasis for too long has been on eradicating poverty through aid rather than promoting prosperity through improved infrastructure, education, entrepreneurship, and trade. That is now changing: there is a growing emphasis on policies that produce a middle class. The new African middle class may not have the buying power of a Western middle class but it demands enough goods and services to support stronger economic growth, which, as IMF African Department head Antoinette Sayeh points out, in turn helps the poorest members of society. Oxford University economist Paul Collier discusses a crucial component of Africa's needed infrastructure: railways. It is a continent eminently suited to rail, development of which has been held back more by political than economic reasons. But even as sub-Saharan African thrives, its largest and most important economy, South Africa, has had an anemic performance in recent years. We also profile Ngozi Okonjo-Iweala, Nigeria's colorful economic czar. "Picture This" mines current trends to predict what Africa will look like a half century from now and "Data Spotlight" looks at increased regional trade in Africa. Elsewhere, Cornell Professor Eswar Prasad, examines a global role reversal in which emerging, not advanced, economies are displaying resilience in the face of the global economic crisis. The University of Queensland's John Quiggin, who wrote Zombie Economics, examines whether it makes sense in many cases to sell public enterprises. Economists Raghuram Rajan of the University of Chicago and Rodney Ramcharan of the U.S. Federal Reserve find clues to current asset booms and busts in the behavior of U.S. farmland prices a century ago.

International Monetary Fund
This Selected Issues paper and Statistical Appendix examines the economic developments in Zambia during the 1990s. Economic activity recovered significantly in 1996. Real GDP expanded by almost 6½ percent, compared with a cumulative decline of 12½ percent in 1994–95. Good rains stimulated agricultural production, while the other nontraditional and mining sectors also contributed to the turnaround in economic activity. However, owing to a sharp deterioration in the terms of trade, largely on account of falling copper prices, real national income increased by only 2 percent.
International Monetary Fund
In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
Ridwan Ali and Barbara Pitkin

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

Mr. Vito Tanzi, M. Zühtü Yücelik, Mr. Peter S. Griffith, and Mr. Carlos A. Aguirre

Abstract

This study indentifies some of the taxation problems most frequently encountered by Fund member countries in sub-Saharan Africa and seeks solutions that may be useful to either the region as a whole or to groups of countries in the region.

International Monetary Fund. External Relations Dept.
This paper highlights that 1976 was an important year for the IMF. With the end of 1976, the IMF closed its books on a year of virtually unprecedented activity. It launched the New Year with a US$3.9 billion stand-by arrangement for the United Kingdom, the largest ever made for a member country. The outlook at the beginning of 1977 suggests another busy year ahead for the IMF. The proposed second amendment to the IMF’s Articles of Agreement and the increase in members’ quotas are expected to go into effect before the end of the year.
Roy W. Bahl

THE POTENTIAL USEFULNESS of meaningful intercountry comparisons of the size of the public sector has prompted numerous attempts to explain statistically the variation, at a point in time, in tax ratios.2 These analyses have usually employed a single-equation regression model to identify the determinants of intercountry differences in the tax ratio. In one sense this approach represents an attempt to construct a positive theory of taxation by assuming that measurable characteristics of a country are systematically related to its revealed preference for a given size government, namely, the size of its tax ratio. However, recent studies on tax ratio have turned from strictly positive analyses with an informational objective to a normative application with the objective of making intercountry tax effort comparisons.3 The use of studies for this latter purpose is limited by a set of conceptual and methodological problems, which stem from the assumptions basic to the analysis.