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.
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.
International Monetary Fund. Strategy, Policy, & and Review Department
The paper reviews the implementation of the initiatives the IMF committed to in 2015 to support developing countries in pursuing the 2030 agenda for sustainable development, including (i) strengthening national tax systems; (ii) tackling large infrastructure gaps; (iii) promoting economic inclusion; (iv) the development of domestic financial markets; (v) intensifying engagement in fragile and conflict-affected states; (vi) improving economic statistics; (vii) expanding the financial safety net for developing countries; and (viii) addressing macroeconomic aspects of climate change. The implementation record to date shows that there has been a large scaling up of IMF support for the 2030 development agenda. The IMF has also engaged in other initiatives of direct relevance for supporting the 2030 development agenda, including adopting a framework to assess corruption vulnerabilities and developing a broad framework for assessing the spending levels needed to reach key SDGs. The paper draws lessons learned from the implementation of the various initiative to inform future IMF engagements.