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International Monetary Fund

The Selected Issues paper discusses Cambodia’s poverty and growth, private sector development, public financial management reform, and debt sustainability. It summarizes the Poverty Assessment and describes the regime of tax incentives, costs, and limits for private investment. It also summarizes the assessment of Cambodia’s Public Expenditure Management system and Public Financial Management Reform Program. It highlights the key reform priorities, and provides historical background on Cambodia’s external and domestic debt. It also includes a statistical appendix and a summary of the tax system.

Angus Deaton

Before the world can answer questions about how poverty is reduced, it needs to know how progress can be measured. But estimates of the number of the world’s poor and questions about whether it has been decreasing or increasing have given rise to one of the hottest controversies in the development community. Angus Deaton, Professor of Economics and International Affairs at Princeton University’s Woodrow Wilson School, who has looked in detail at India’s poverty numbers, has been at the center of this debate. He speaks here with Prakash Loungani of the IMF’s External Relations Department about the dimensions of the problem and what can be done to provide more transparent and more reliable data on the world’s poor.

International Monetary Fund. External Relations Dept.

Measures of poverty figure prominently in debates on the social impact ofeconomic policies and are now routinely used to design targeted interventions to fight poverty. This, coupled with the prominence given to the UN Millennium Development Goal of halving the poverty rate in the world by 2015 (relative to 1990), highlights the need for close scrutiny of poverty data and measures. At a February 4 IMF Institute seminar, Martin Ravallion, Research Manager in the Development Research Group of the World Bank, reviewed current methods of measuring poverty and discussed their role in the debate over globalization’s impact on poverty and inequality.

Ms. Caroline M Kende-Robb and Mrs. Alison M Scott
This paper reviews some early interim and full PRSPs for countries with which the authors worked during 1999-2000 (Uganda, Burkina Faso, Tanzania, Mozambique, Mali and The Gambia). The purpose of the review is to compare and contrast how the PRSP process was established there. It finds that rapid progress was made in implementing the initiative in all the countries, increasing commitment to poverty reduction amongst government and donors and encouraging broader participation in the policy dialogue. However, there was considerable variation between the cases, reflecting different local contexts and capacities.
Marijn Verhoeven, Mr. Sanjeev Gupta, Mr. Gerd Schwartz, Mr. Calvin A McDonald, Željko Bogetic, and Mr. Christian Schiller
This paper presents a preliminary analysis of the likely social impact of the economic crisis and the reform programs in three Asian countries—Indonesia, Korea, and Thailand. The focus is on likely changes in real consumption expenditures arising from higher inflation and increases in unemployment. The current social policy measures adopted in the reform programs should provide significant social safety nets for the poor. However, if the social impact turns out to be larger than projected, it would be worthwhile to assess cost-effective and efficient alternatives for expanding social safety nets. The paper presents some options that could be considered.
Mr. Sanjeev Gupta, Ms. Catherine A Pattillo, and Mr. Kevin J Carey
Are improvements in growth in Sub-Saharan Africa (SSA) since the mid-1990s sustainable? What types of growth strategies contribute the most to reducing poverty? This paper examines these questions in four stages. First, it explores the factors contributing to the post- 1995 improvement in growth. Second, to shed some light on factors associated with substantial jumps in growth rates that are sustained in the medium term, an analysis of the correlates of growth accelerations is presented. Third, the paper examines the consistency of the SSA data with some important predictions from the literature directly linking such areas as fiscal policy, financial development, or institutions and growth. Fourth, it reviews recent evidence regarding lessons on the type of growth process that is most effective at raising the incomes of the poor.
Mr. Alexei P Kireyev
This paper reviews the significant macro-fiscal challenges posed by climate change in Djibouti and the costs of mitigation and adaptation policies. The paper concludes that Djibouti is susceptible to climate change and related costs are potentially large. Investing now in adaptation and mitigation has large benefits in terms of reducing the related costs in the future. Reforms to generate the fiscal space are therefore needed and investment for mitigation and adaptation to climate change should be built into the long-term fiscal projections. Finally, concerted international efforts and stepping up regional cooperation could help moderate climate-related macro-fiscal risks.