Deon Filmer, Roberta Gatti, Halsey Rogers, Mr. Nikola Spatafora, and Drilona Emrullahu
We discuss existing shortfalls and inequalities in the accumulation of human capital—knowledge, skills, and health. We analyze their immediate and systemic causes, and assess the scope for public intervention. The broad policy goals should be to improve: the quality, and not just the quantity, of education and health care; outcomes for disadvantaged groups; and lifelong outcomes. The means to achieve these goals, while maximizing value for money, include: focusing on results rather than just inputs; moving from piecemeal interventions to systemic reform; and adopting a “whole-of-society” approach. Reforms must be underpinned by a robust evidence base.
International Monetary Fund. External Relations Dept.
This paper focuses on millennials who are increasingly looking to find their way in the sharing economy, a phenomenon made possible by the emergence of digital platforms that facilitate the matching of buyer and seller. Jobs in the sharing economy—like driving for Uber or Lyft—help some millennials make ends meet, even if such temporary gigs are a far cry from the fulltime jobs with traditional pension plans and other benefits their parents often enjoyed. This generation also enthusiastically embraces the services of the sharing economy, which provides access to everything from beds to cars to boats without the hassle of ownership. Loath to buy big-ticket items such as cars and houses, millennials have sharply different spending habits from those of preceding generations. Millennials confront obstacles to prosperity that their parents didn’t face. They are better educated than previous generations—but in today’s world, that is not enough to guarantee financial success.
This paper reviews public expenditure in Lithuania to identify areas where deeper structural
reforms may be warranted to improve spending efficiency and contain future spending
pressures. The analysis benchmarks spending in Lithuania against other European countries
focusing on spending levels, spending composition, and spending outcomes, and for both
economic and functional spending classifications. While recent expenditure consolidation efforts
have kept public spending among the lowest in Europe, a transition from broad-based measures
to more structural measures will be required: to ensure that low spending levels remain
sustainable, to address poor social outcomes such as high inequality and poor health and
education outcomes, and to efficiently and equitably contain spending pressures arising from an
This Selected Issues paper analyses the impact of a potential rebalancing of Icelandic residents’ investment portfolios as capital controls are lifted. It applies optimal portfolio theory to calculate the potential rebalancing toward foreign assets, and then makes an estimate of the cumulative impact on the balance of payments and international reserves. Conclusions for the authorities’ capital account liberalization strategy are drawn. This paper also measures the potential budgetary savings from improving the efficiency of public spending in health and education in Iceland. A Data Envelopment Analysis is used to estimate an efficiency frontier by comparing across Organization for Economic Cooperation and Development countries the transformation rates of public spending into valuable social outcomes.
Mr. Olumuyiwa S Adedeji, Huancheng Du, and Mr. Maxwell Opoku-Afari
The inclusiveness of growth depends on the extent of access to economic and social opportunities. This paper applies the concept of social opportunity function to ascertain the inclusiveness of growth episodes in selected African countries. Premised on the concept of social welfare function, inclusive growth is associated with increased average opportunities available to the population and improvement in their distribution. The paper establishes that the high growth episodes in the last decade in the selected countries came with increased average opportunities in education and health; but distribution of such opportunities varied across countries, depending on the country-specific policies underpining the growth episodes.
This paper reviews the first annual progress report (APR) on implementation of the Poverty Reduction Strategy (PRS) in the Republic of Congo. The paper discusses that a number of stages in PRS implementation have already been completed. The PRS is being implemented in an international economic context marked by a severe economic and financial crisis. At the national level, favorable circumstances have enabled Congo to maintain a high level of economic growth averaging nearly 6 percent a year from 2005 to 2009.
This paper reviews the annual progress report on Poverty Reduction Strategy Paper (PRSP) for Republic of Congo. The adoption of the PRSP in March 2008 was followed by adoption of the Operational Action Plan for implementation of the PRSP. The poverty reduction strategy is being implemented in an international economic context marked by a severe economic and financial crisis. The government has also undertaken significant structural administrative reforms with a view to improving political governance.