Mr. Rabah Arezki, Mr. Christian Bogmans, and Mr. Harris Selod
This paper is the first to provide both theoretical and empirical evidence of farmland
globalization whereby international investors directly acquire large tracts of agricultural land
in other countries. A theoretical framework explains the geography of farmland acquisitions
as a function of cross-country differences in technology, endowments, trade costs, and land
governance. An empirical test of the model using global data on transnational deals shows that
international farmland investments are on the aggregate likely motivated by re-exports to
investor countries rather than to world markets. This contrasts with traditional foreign direct
investment patterns where horizontal as opposed to vertical FDI dominates.
This paper discusses key findings of the 2006 Article IV Consultation and Third Review Under the Poverty Reduction and Growth Facility for Niger. Macroeconomic performance and policy implementation have been broadly satisfactory. After a drought in 2004, a bumper harvest in late 2005 and good rains in 2006 have helped economic recovery, improved food security, and eased inflation. The fiscal deficit in 2006 is expected to be narrower than programmed, reflecting mainly lower spending on investment and food security.
The objective for net foreign assets was discussed in this paper. Macroeconomic performance under the PRGF arrangement was broadly discussed. Several developments during the second half of 2005/2006 required the authorities to strengthen financial management controls and to make other policy adjustments. To meet additional humanitarian needs, the government expanded its food security operations. The authorities are working with IMF staff and other stakeholders to redefine pro-poor spending for 2006/2007. The government has taken further steps to ensure the viability of the pension system.
This study focused on the macroeconomic framework, food security needs, implementation of priority investment projects, and domestic petroleum pricing policy. The new fiscal program contains a number of new measures, and it is a precise policy for domestic petroleum pricing. The execution of the revenue mobilization strategy is needed to increase Niger’s low revenue-to-gross domestic product (GDP) ratio and to meet the expenditure needs associated with the Millennium Development Goals (MDGs). IMF staff encourages the authorities to activate the pace of structural reforms.
This Selected Issues paper for Japan illustrates the impact of fiscal and structural reforms on the Japanese and world economies. Japan faces a sizable fiscal deficit, against a backdrop of weak trend growth and growing imbalances in the world economy. Moreover, upward pressure on health care and social security spending owing to an aging population will add significantly to strains on public resources in the near future. The Japanese government is taking a range of measures aimed at raising productivity growth and stabilizing the public debt in relation to GDP over the medium term.
International Monetary Fund. External Relations Dept.
This paper elaborates the introduction of surveillance that gave the IMF broader responsibilities with respect to oversight of its members’ policies than existed under the par value system. The IMF’s purview has been broadened under the new system but, by the same token, its members are no longer obliged to seek its concurrence in changes in exchange rates. The continuing volatility of exchange rates, and their prolonged divergence from levels that appear to be sustainable over time, have been matters of growing concern.