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Rasmané Ouedraogo and Mr. Amadou N Sy
This paper studies the effect of digitalization on the perception of corruption and trust in tax officials in Africa. Using individual-level data from Afrobarometer surveys and several indices of digitalization, we find that an increase in digital adoption is associated with a reduction in the perception of corruption and an increase in trust in tax officials. Exploiting the exogeneous deployment of submarine cables at the local level, the paper provides evidence of a negative impact of the use of Internet on the perception of corruption. Yet, the paper shows that the dampening effect of digitalization on corruption is hindered in countries where the government has a pattern of intentionally shutting down the Internet, while countries that successfully promote information and communication technology (ICT) enjoy a more amplified effect.
Mr. Carlos Mulas-Granados, Richard Varghese, Vizhdan Boranova, Alice deChalendar, and Judith Wallenstein
We exploit a survey data set that contains information on how 11,000 workers across advanced and emerging market economies perceive the main forces shaping the future of work. In general, workers feel more positive than negative about automation, especially in emerging markets. We find that negative perceptions about automation are prevalent among workers who are older, poorer, more exposed to job volatility, and from countries with higher levels of robot penetration. Perceptions over automation are positively viewed by workers with higher levels of job satisfaction, higher educational attainment, and from countries with stronger labor protection. Workers with positive perceptions of automation also tend to respond that re-education and retraining will be needed to adapt to rapidly evolving skill demands. These workers expect governments to have a role in shaping the future of work through protection of labor and new forms of social benefits. The demand for protection and benefits is more significant among women and workers that have suffered job volatility.
Carl J. Dahlman

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.

Shuja Nawaz

The role of the World Bank in a changing financial environment is discussed. The World Bank has made several notable changes in its financial structure and operations to assure its continuing financial strength in changing circumstances. Both the front-end fee and the variable lending rate system permit the Bank to pass through to borrowers the consequences of adverse interest rate movements. The Bank’s new financial policy has significantly increased its flexibility and reduced its vulnerability to financial turbulence.