International Monetary Fund. External Relations Dept.
The Two Faces of Financial Globalization looks at the phenomenon of rising cross-border financial flows-credited with boosting growth in developing countries but also blamed for the emerging market crises of the late 1980s and 1990s. The lead article puts together a framework for analyzing studies about the costs and benefits of financial globalization. Other articles look at the worldwide allocation of capital, the role of finance in macroeconomic management, and changes in the investor base. "Picture This" illustrates the growth and direction of capital flows. One guest contributor describes India's capital account liberalization, and another looks at how participants in international finance can cope with a fluid financial landscape. "People in Economics" profiles Guillermo Calvo; "Back to Basics" explains the difference between the purchasing power parity exchange rate and market exchange rates as measures of global economic growth; and "Country Focus" spotlights Australia.
Debt relief from multilateral and bilateral creditors is showing results in Africa. In the landlocked western African country of Niger, lower debt service, together with continued significant budgetary aid and higher domestic revenue mobilization, is having an impact on spending in education, health, and the rural sector (see Chart 1). Budgetary allocations in these areas increased by 4 percent of GDP between 2002 and 2007. Debt cancellation yielded a drop in debt service of about 2 percent of GDP between 2003 and 2006. The external debt was trimmed by $1.3 billion, from 76 percent of GDP at end-2002 to 14 percent at end-2006.
This paper reviews trends in GDP and other macroeconomic variables since independence. It assesses the performance of the different sectors of the economy and expenditure categories. The paper identifies a number of products that could contribute to maintaining the high growth rate that nontraditional exports have experienced. The medium-term fiscal sustainability analysis provides a useful quantification of the impact of the shocks experienced on fiscal performance. Ghana's social insurance system, stock exchange, divestiture program, rural finance, and poverty are also discussed.
This selected issues paper on Indonesia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on August 21, 2012. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Indonesia or the Executive Board of the IMF.
This Poverty Reduction Strategy Paper (PRSP) highlights the progress report for Guinea. In order to strengthen the dynamics undertaken in the area of planning and implementing the poverty reduction strategy, with the support of its development partners, the government in September 2012 undertook the process of preparing its third PRSP, which covers 2013–2015. PRSP-3 implementation for the 2013 annual period registered disappointing results, explained by the unfavorable domestic as well as international context (political instability and falling commodities prices) and poor performance in growth sectors such as mining. Investments in infrastructures in support of growth increased substantially. Support and strengthening of the efforts made in this area will make it possible to ensure stable GDP growth rates of approximately 7.8 percent between 2013 and 2015. However, investments in the energy sector have yielded disappointing results as a result of the poor condition of the network, commercial management problems, and other factors.
Gold mining represents an engine of growth for the Malian economy. A description of the techniques and importance of artisanal gold mining in Mali, the key developments of the industrial mining era, and potential gold mining developments are discussed in the paper. The Malian mining policy and regulations, the impact of industrial gold mining on the Malian economy, public finances, and employment are discussed. The statistical data on the economic indices of Mali are also presented in the paper.
The number of Malian refugees in Burkina Faso has increased, but the government’s contribution remains in line with earlier estimates. Growth for 2012 has been revised upward to 8 percent. The overall fiscal deficit is significantly lower than anticipated. The current account is expected to improve next year. There is significant improvement in revenue collection. The authorities are stepping up efforts to improve resilience to shocks. Efforts are under way to improve debt management capacity. The mining taxation regime needs to rebalance the interests of investors.
In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
This Selected Issues paper describes the revenue instability and its consequences for Suriname. It explores some options for policy rules that could be considered in the case of Suriname. The paper analyzes inflation in Suriname from its historical and international perspectives, reviews the monetary policy instruments and the institutional framework, and describes the exchange rate regime and its main developments. The paper also analyzes the type of macroeconomic shocks and the domestic transmission mechanism for Suriname.