This paper describes the technical improvement in developing countries. It highlights that developing countries have relied heavily for their industrial development upon foreign enterprises as sources of technology and management systems. The paper underscores that through direct investment or under licensing arrangements, foreign corporations have supplied a vast array of industrial products and equipment and have exercised a major role in the design and construction of processing and manufacturing facilities in newly industrializing countries.
On October 15, the Federal Reserve Bank of New York announced the appointment of Timothy Geithner as its President and Chief Executive Officer. Geithner, who has headed the IMF’s Policy Development and Review Department (PDR) since December 2001, is expected to take up his new duties in mid-November.
International Monetary Fund. External Relations Dept.
On April 5, the IMF Executive board agreed to a pilot project for the voluntary release of Article IV staff reports. Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with its members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
Managing Director Horst Köhler has appointed Mark Allen to the position of Director of the IMF’s Policy Development and Review Department and Leslie Lipschitz to the position of Director of the IMF Institute (the IMF’s training institute). Allen and Lipschitz are both currently Deputy Directors in the Policy Development and Review Department.
International Monetary Fund. Western Hemisphere Dept.
This 2016 Article IV Consultation highlights that the real output of Honduras in 2015 grew at 3.6 percent, slightly higher than projected. From the demand side, growth was supported by the recovery in private consumption-which responded positively to a reduction in gasoline prices and strong remittances inflows-and a boost in investment. On the supply side, the recovery in manufacturing and agriculture supported greater activity. The outlook for 2016 remains favorable. Real GDP through the second quarter of 2016 grew by 4.1 percent (year over year) broadly consistent with IMF staff projection of 3.6 percent for 2016. This projected growth performance is supported by scaled up public infrastructure investment and a supportive monetary policy stance.
The Millennium Development Goals (MDGs) represent a global commitment to improve economic and social conditions in low-income countries. Capacity building is key to promoting higher economic growth, which, in turn, is an important prerequisite for making progress toward the MDGs. This paper uses the UNDP's emerging framework for capacity building to show how the IMF supports capacity building at the individual, organizational, and the system level, thereby contributing to the efforts of countries to meeting the MDGs.
Manoj Atolia, Mr. Prakash Loungani, Milton Marquis, and Mr. Chris Papageorgiou
This paper takes a fresh look at the current theories of structural transformation and the role of
private and public fundamentals in the process. It summarizes some representative past and
current experiences of various countries vis-a-vis structural transformation with a focus on the
roles of manufacturing, policy, and the international environment in shaping the trajectory of
structural transformation. The salient aspects of the current debate on premature
deindustrialization and its relation to a middle-income trap are described as they relate to the
path of structural transformation. Conclusions are drawn regarding prospective future paths for
structural transformation and development policies.
Uruguay experienced one of its biggest economic booms in history during 2004-2014. Since then, growth has come down significantly. The paper investigates the various causes of the boom and discusses the sustainability of these causes. It then compares Uruguay against high-growth countries that were once at a similar income level, across a broad set of structural indicators, to identify priority reform areas that could improve long-term growth prospect.