Chad’s chronic instability has hindered growth and poverty reduction. Chad remains among the poorest countries in the world, and has made little progress toward the Millennium Development Goals. The global financial crisis affected Chad mainly through the decline in oil prices. Prompt reaction to the pressing food shortage needs to be complemented by measures to increase agriculture productivity. The government should adopt a supplementary budget that reduces the non-oil primary deficit while accommodating priority spending. Improving public financial management is the key.
Cracks in the System: World Economy Under Stress" explores the rapidly changing institutional and policymaking landscape around a financial crisis that now threatens a deep and prolonged global recession. The lead article looks at how the world got into the mess and what to do about it, both now and over the medium term. Other articles review options for changing the rules of world finance, examine the case for modernizing the way countries coordinate their policies, and try to draw some lessons from past financial crises. The "other crisis" of high food and fuel prices is also assessed, as the effects extend past the mid-2008 price peak. "People in Economics" profiles Robert Shiller; "Picture This" illustrates how middle-income economies can reach high-income status; "Back to Basics" looks at all the components that make up gross national product; and "Country Focus" spotlights Saudi Arabia.
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.
International Monetary Fund. External Relations Dept.
Africa's Middle-Class Motor finds growing evidence that a recent resurgence in the continent's economic well-being has staying power. In his overview article, Harvard professor Calestous Juma says the emphasis for too long has been on eradicating poverty through aid rather than promoting prosperity through improved infrastructure, education, entrepreneurship, and trade. That is now changing: there is a growing emphasis on policies that produce a middle class. The new African middle class may not have the buying power of a Western middle class but it demands enough goods and services to support stronger economic growth, which, as IMF African Department head Antoinette Sayeh points out, in turn helps the poorest members of society. Oxford University economist Paul Collier discusses a crucial component of Africa's needed infrastructure: railways. It is a continent eminently suited to rail, development of which has been held back more by political than economic reasons. But even as sub-Saharan African thrives, its largest and most important economy, South Africa, has had an anemic performance in recent years. We also profile Ngozi Okonjo-Iweala, Nigeria's colorful economic czar. "Picture This" mines current trends to predict what Africa will look like a half century from now and "Data Spotlight" looks at increased regional trade in Africa. Elsewhere, Cornell Professor Eswar Prasad, examines a global role reversal in which emerging, not advanced, economies are displaying resilience in the face of the global economic crisis. The University of Queensland's John Quiggin, who wrote Zombie Economics, examines whether it makes sense in many cases to sell public enterprises. Economists Raghuram Rajan of the University of Chicago and Rodney Ramcharan of the U.S. Federal Reserve find clues to current asset booms and busts in the behavior of U.S. farmland prices a century ago.
Kenya’s strong economic performance in recent years with real GDP growth of 6 percent on average over 2004–07 has been stalled by a series of exogenous but temporary shocks that hit the economy in 2008. The staff report highlights Kenya's request for Disbursement under the Rapid-Access Component of the Exogenous Shocks Facility. Monetary policy has been eased to support economic activity and fiscal policy focused on reprioritizing expenditure. Structural policies have focused on improving the food distribution mechanism for better access to staples for an estimated 10 million food-deficient Kenyans.
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 paper discusses key findings of the Sixth Review Under the Policy Support Instrument (PSI) for the United Republic of Tanzania. All end-June 2009 quantitative performance/assessment criteria were met. Good progress has been achieved with structural reforms. The Executive Board approved the Fifth Review of the PSI and a 12-month arrangement under the high access component of the Exogenous Shocks Facility in the amount of SDR 218.79 million (110 percent of quota) on May 29, 2009.
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.
International Monetary Fund. External Relations Dept.
The IMF is helping low-income countries hit by high food prices take appropriate policy action while providing financial assistance to some of the worst-affected nations, Managing Director Dominique Strauss-Kahn said.