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Ms. Nancy Louise Happe, Mr. Mumtaz Hussain, and Ms. Laure Redifer

This paper describes why the international community needs to act now to stand a chance of meeting the Millennium Development Goals (MDGs). The paper gives example of Ethiopia, one of the poorest countries in the world, with an estimated per capita income of about US$100. According to the World Bank, recent national household surveys find 44 percent of the people in Ethiopia cannot meet basic needs. The paper discusses that Ethiopia in many ways epitomizes why the MDGs are important and why more money is needed to achieve them.

Benn Eifert and Mr. Alan H. Gelb

This paper explores why increased aid flows require economic policymakers to confront some specific issues. Ensuring that increased aid promotes growth and reduces poverty is certainly the most important task. Empirical studies offer only mild support for aid-boosting growth. However, one study suggests that once one excludes the aid flows aimed at political and humanitarian goals, a positive net effect is observed for the remaining aid focused on economic objectives. This paper also outlines the roles to be played by development partners for making the aid being properly utilized for boosting growth.

International Monetary Fund. Research Dept.

IMF research summaries on governance of banks (by Luc Laeven) and on whether there is a foreign aid paradox (by Thierry Tressel); country study on Mozambique (by Jean A.P. Clément and Shanaka J. Peiris); listing of visiting scholars at the IMF during July 2007-January 2008; listing of contents of Vol. 54, Issue No. 4 of IMF Staff Papers; listing of recent IMF Working Papers; listing of recent external publications by IMF staff; and a call for papers for the upcoming Conference on International Finance.

International Monetary Fund. External Relations Dept.

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.

Ajay Chhibber

Is there a connection between devaluation and high inflation? Not a clear one. Depends on accompanying monetary and fiscal policies and the presence of parallel markets

Mehran Latham Brimbie and Chandavarkar Dillon

The International Monetary Fund lays considerable stress on providing technical assistance in economic and financial matters to its member countries. This assistance is no less important than the provision of financial resources. Technical assistance constitutes a transfer of another kind of resource—knowledge and the accumulated experience of Fund staff from their work in its 146 member countries. This series of articles is, in brief, an overview of this aspect of the Fund’s work.

Donald Keesing and Andrew Singer

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.