This paper highlights that the flow of IMF-related resources to member countries was maintained at a high level during 1979, amounting to the equivalent of SDR 6,917 million, compared with SDR 4,955 million in 1978. Some SDR 3.77 billion became available to non-oil developing countries in 1979. Repurchases in the General Resources Account by all members—at SDR 4.2 billion—exceeded their purchases of SDR 1.8 billion by an unprecedented SDR 2.4 billion. These large repurchases reflected the substantial improvement in the balance of payments of some industrial member countries that had large outstanding drawings.
The generation of operating surpluses by nonfinancial public enterprises is one technique by which domestic resources can be mobilized for use by the public sector (the enterprises themselves or some governmental unit). Assuming that the enterprises are operated in a manner consistent with X-efficiency and allocative efficiency, the pricing policies and practices that would be consistent with the generation of operating surpluses (or losses) are almost certainly regarded by many as a substitute in some sense for taxation (or subsidization) measures in the mobilization of domestic resources. 1 For example, Musgrave and Musgrave noted that, in the case of government monopolies, “if the government does not follow this [marginal cost pricing] rule but charges a higher price, this may be considered equivalent to imposing an excise tax on the product.” 2
International Monetary Fund. External Relations Dept.
How can the mining and metals sector contribute to sustainable progress in the developing world? The International Council on Mining and Metals (ICMM) seeks to help answer this question with its Resource Endowment Initiative, a project launched two years ago with the help of the United Nations Conference on Trade and Development (UNCTAD) and the World Bank. On June 30, Kathryn McPhail (Principal, ICMM) and John Groom (Head of Safety, Health, and Environment, Anglo American plc) presented the initiative’s initial findings to a group of IMF staff.
Non-fuel primary commodity prices fell in the second half of 1989, breaking the upward trend that had prevailed in the preceding two years. The decline in the Fund’s index of non-fuel commodity prices from the first half of 1989 to the second half of the year was 7 percent in terms of SDRs and 8 percent in terms of U.S. dollars.1 By contrast, petroleum prices increased during 1989, reversing the downward trend of the previous two years. The Fund’s indicative petroleum price—an average of prices for U.K. Brent light crude, Dubai medium crude, and Alaska north slope heavy crude—rose on a year-to-year basis by 38 percent in SDR terms and 33 percent in terms of dollars during the second half of 1989.
Prices of food commodities, which began to recover in 1987, peaked during the first half of 1989. Since then food prices have weakened and are expected to weaken further in 1990. The aggregate index of food prices, after increasing by 23 percent in 1988, averaged a modest 8 percent rise in 1989 (Table 5). As a result, the index stood at its highest level since 1984, just prior to the long downward trend that bottomed out in the first half of 1987.
In contrast to the overall index of non-fuel commodity prices, which rose by 4 percent, the index of beverage prices fell by nearly 13 percent in 1989 (Table 6). The decline, which was the third in as many years, is largely attributable to supply factors. Increased production of coffee and cocoa in lagged response to the high prices of the late 1970s was the main factor contributing to the increase in the overall supply of beverages. After the sharp increase by nearly 11 percent in 1987, which reflected to a considerable degree the recovery of Brazilian coffee production from the severe 1985 drought, the index of world supply of beverages rose by a further 5 percent in 1988 and by 3 percent in 1989. World consumption of beverages is estimated to have increased by 2 percent per annum during these three years. As a result of the widening disparity between world supplies and consumption, the overall level of world stocks of beverages has increased during this period; the index of closing stocks rose by 37 percent in 1987, by over 8 percent in 1988, and by more than 5 percent in 1989.
This paper examines Peru’s Request for a Stand-By Arrangement (SBA). Performance under the 2002–03 SBA was satisfactory. This performance provides a solid basis for continuing with policies aimed at maintaining macroeconomic stability. The authorities are requesting a 26-month SBA covering the period through August 2006, when a new administration is scheduled to take office. They consider that continued IMF support for their program would help anchor economic policymaking and improve investor sentiment. To boost economic growth and promote employment, the authorities are committed to implementing a broad set of structural reforms.
This paper examines Peru’s 2004 Article IV Consultation, Fourth Review Under the Stand-By Arrangement, and Request for Waiver of Nonobservance of Performance Criterion. In 2003, Peru’s real GDP grew by 4 percent, with inflation of 2.5 percent and a further strengthening of the external position. Fiscal reforms have progressed well over the last two years, including the creation of a sound legal framework for fiscal decentralization, improved fiscal transparency, and further pension reforms. The authorities' economic program for 2004 foresees continued economic growth, based on a further recovery of investment and strong export growth.