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Cheryl W. Gray and Mr. Daniel Kaufmann

What are the principal causes and costs of corruption? This article examines these questions and suggests specific ways to enhance anticorruption efforts in developing and transition economies.

International Monetary Fund. External Relations Dept.

At the recently concluded IMF-World Bank Annual Meetings in Singapore, the IMF won overwhelming endorsement of a package of measures designed to better align members’ quotas with changes in the world economy and to protect the participation and voice of its low-income members. IMF Managing Director Rodrigo de Rato told the world’s top financial leaders that these governance reforms “are tremendously important for the future of our institution. They will enhance our effectiveness and add legitimacy to all of the other reforms that we are implementing.”

Ms. Patricia A Reynolds

India has been among the fastest growing economies in the world over the past two decades. It has achieved trend improvements in growth, literacy, mortality, and poverty rates (see chart, top panels, this page). In recent years, India’s deft handling of monetary policy has helped it successfully weather the Asian crisis while maintaining low inflation and a comfortable external position. Yet despite these gains, poverty rates remain high, with more than one-third of the population still living below the official poverty line. This uneven progress raises questions about the impact of recent economic and structural reforms and about what more can be done to reduce poverty.

Nagy Hanna

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.