International Monetary Fund. External Relations Dept.
This paper discusses the employment of women in developing countries in the light of recent changes in emphasis on the strategy and objectives of economic development. The paper highlights that in the vast majority of countries—both developed and developing—the role of women is still limited and their responsibilities restricted. This paper examines automated manufacturing techniques in developing economies. The operations and transactions of the special drawing account are discussed. The paper also analyzes Latin America’s prospects for overcoming historical attitudes and other constraints to achieve wider economic integration.
This staff report on the Republic of Serbia’s Article IV Consultation highlights economic background and policies. The global financial crisis exposed Serbia’s unsustainable growth model and its key vulnerabilities. Robust growth has not taken off, and economic activity is below precrisis levels amid widespread structural rigidities. Serbia’s economy is recovering from recession but faces multiple challenges. The successful launch of Fiat production in 2012 is contributing to growth this year, and inflation is declining. Potential growth is constrained by multiple structural hurdles resulting from unfinished structural reforms. Rebalancing the policy mix and launching a comprehensive package of structural reforms are critical to unlocking Serbia’s growth potential.
This paper assesses the extent to which data unreliability could alter the assessment of the macroeconomic challenges ahead. The contributions of the indirect tax authority (ITA) in remedying the flaws are highlighted, and the architectural agenda is discussed. Fiscal sustainability and the government’s bold initiatives to secure it by restructuring the domestic claims have been assessed and key implementation issues in realizing the government’s plans noted. A survey of selected tax policy issues in Bosnia and Herzegovina is also included in the paper.
This Selected Issues paper discusses Romania’s modeling monetary policy. A simple Forecasting and Policy Analysis System (FPAS) for Romania has been designed to help in the preparation of the IMF staff’s forecasts and policy assessments. A major advantage of this approach is that it allows the systematic and rapid analysis of different policy options. The model embodies the key principle that, in an inflation-targeting framework, the role of monetary policy is to provide an anchor for inflation and inflation expectations. The development and calibration of this model is an ongoing process.
Threats to external stability in the pre-crisis period have now been reduced substantially and foreign non-debt creating flows have declined, sufficient to support external stability. The global economic downturn has raised challenges for evaluating the countries’ fiscal stance and fiscal policy focus should be lowering support to debt sustainability, private sector development, and the currency board stability. The two entity pension funds have been under increasing financial pressures. Putting the public pension systems on a sound footing will encompass a number of complementary steps.
This paper describes economic developments in Albania during the 1990s. Macroeconomic performance deteriorated in 1996, as the fiscal stance was weakened ahead of the parliamentary elections in May. Although two large public sector wage increases contributed, it was mainly revenue shortfalls that drove the domestically financed budget deficit to more than 10½ percent of GDP—the highest level since 1992. Reflecting higher demand in the economy, the trade deficit increased from 19½ percent of GDP to 25 percent of GDP, and inflation nearly tripled to 17½ percent.
This paper discusses Kosovo’s First Review Under the Stand-By Arrangement and Requests for Modification and Waivers of Applicability of Performance Criteria (PC). The program is on track. All end-August 2015 PCs and indicative targets were met by comfortable margins. All structural benchmarks for the first review have been met. More broadly, there is strong ownership of structural reforms in the financial sector and in public procurement. The authorities reaffirmed the targets for the fiscal deficit and bank balances for next year and identified measures to achieve these. The IMF staff support the authorities’ request for completion of the first review.
This paper focuses on the relation of inflation to economic development. Due to the inadequacy of savings and the difficulty of directing them into productive investment, there is a strong temptation to raise the level of investment by expanding bank credit—that is, by inflation. In most low-income countries, even the most forceful measures for increasing savings and for applying them to the most urgent needs would still leave the economy with inadequate resources for the investment necessary to assure tolerable progress in raising productive efficiency and expanding production. The only way of securing adequate resources for development in such countries is by supplementing domestic savings with capital from abroad. It is characteristic of the underdeveloped countries that the resources they put into investment are generally a smaller proportion of their very much smaller national product than is true for the more highly developed countries. The proportionally low level of investment in underdeveloped countries may be due to various factors. Frequently, though not universally, the cause of inadequate investment is the unavailability of savings.