International Monetary Fund. External Relations Dept.
This paper highlights that since its inception in 1956, the International Finance Corporation (IFC) has invested more than US$1.7 billion in nearly 300 enterprises in 62 developing countries in total projects costing about US$9 billion. The IFC is the affiliate of the World Bank, which has been given the specific task of furthering economic development by encouraging the growth of productive private enterprise in developing countries. The paper underscores that IFC plays an essentially catalytic role in generating investment funds from local and foreign sources.
This 2009 Article IV Consultation highlights that Malaysia has been hit hard by the global downturn. The economy is set to contract for the first time in 10 years. Global turbulence has spilled into the domestic financial markets. Executive Directors have commended the Malaysian authorities for sound macroeconomic management in difficult circumstances. Directors have also emphasized that, although the financial sector appears sound and benefited from the growth of Islamic finance, volatile global markets put a premium on crisis preparedness and proactive supervision.
This paper explores the role of foreign aid and remittance inflows in the mitigation of the effects of food price shocks. Using a large sample of developing countries and mobilising dynamic panel data specifications, the econometric results yield two important findings. First, remittance and aid inflows significantly dampen the effect of food price shocks in the most vulnerable countries. Second, a lower remittance-to-GDP ratio is required in order to fully absorb the effects of food price shocks compared to the corresponding aid-to-GDP ratio.
Mr. Jean A. P. Clément, Amo Yartey, Ragnar Gudmundsson, and Mr. Bernardin Akitoby
The Democratic Republic of the Congo (DRC), the third largest country in Africa, is making significant strides to extricate itself from one of the bloodiest wars in the continent’s history, which resulted in millions of deaths. Focusing on the DRC’s turnaround as well as its considerable stabilization and reconstruction challenges, Postconflict Economics in Sub-Saharan Africa draws lessons for postconflict countries worldwide. The IMF team leader and book’s editor, Jean A.P. Clement, and three contributing authors, Bernardin Akitoby, Ragnar Gudmundsson, and Charles Amo Yartey, spoke with Jacqueline Irving of the IMF Survey about what can be learned from the DRC’s experience.
This 2015 Article IV Consultation highlights that despite lower commodity prices and a weaker global environment, Mozambique's economic prospects remain positive given planned massive investment in natural resources. Although GDP growth averaged 7 percent over the last five years, Mozambique's per-capita income and human development index remain low. There is a need to continue implementing policies that support fiscal sustainability, infrastructure investment, and inclusive growth. Mozambique's economic outlook remains robust. Growth of 6.3 percent is expected in 2015, and remains below potential at 6.5 percent in 2016, mainly owing to a stagnant mining sector and substantially tighter fiscal and monetary policies.