International Monetary Fund. External Relations Dept.
Debt has been identified as a key element undermining efforts to achieve sustainable development in African countries. But debt relief on its own cannot remove the crippling burden under which the African countries have labored for the past two decades; nor can it achieve the goal of rapid, sustainable growth leading to poverty reduction.
The Colombian economy proved resilient to the global financial crisis, and a solid recovery is under way. The pace of monetary tightening envisaged strikes the right balance between restraining credit growth and mitigating incentives for further capital inflows. A sudden acceleration of domestic demand places an additional burden on monetary policy. Colombia’s financial sector oversight is solid, and plans to strengthen cross-border and consolidated supervision are commended. Steep taxation of labor and a relatively high minimum wage are significant hindrances to competitiveness. Colombia’s exchange restrictions remain unchanged.
This 2005 Article IV Consultation highlights that Nepal’s economic growth has been affected by the political turmoil and conflict, although inflation has remained moderate, and international reserves are adequate. Real GDP growth averaged 2 percent during 2000/01–2004/05, compared with the 1990s when growth in agricultural productivity and significant trade liberalization contributed to average real GDP growth of 5 percent. Inflation has remained in the low single digits, although it rose to 7¾ percent in mid-October 2005. The overall and domestically financed deficits remained limited in 2004/05.
The staff report for the Second Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility focuses on the Republic of Armenia’s economic environment and policy discussion. Financial sector reforms will focus on improving corporate governance, strengthening regulation and supervision, and deepening financial intermediation. Price developments should be monitored closely and monetary policy tightened further should inflation pressures increase. The authorities’ plan to subsidize the local gas supplier to limit gas tariff increases for end-users is cause for concern.
The status report on the Poverty Reduction Strategy Paper (PRSP) of the Central African Republic showed substantial progress. IMF staff welcomed peace and security consolidation and strong macroeconomic framework under the economic program. They emphasized the need for strengthening the linkages between some of the sectoral and national strategies. They stressed the need for a strategy for monitoring and evaluation of the system, and financing to implement the strategy. They concur that success of the PRSP will be a challenge amidst security issues and financial constraints.
This Selected Issues paper analyzes Pakistan's tax reform and revenue performance. The paper assesses the nature and magnitude of Pakistan's actual twin debt problem in a historical context, and reviews the policy options. The study highlights the factors explaining the recent stagnation in merchandise exports, and analyzes the country's export performance with regard to the linkages between performance and the structure of exports. The paper reviews a survey of poverty in Pakistan, and also provides a statistical appendix report of the country.
Kenya showed poor implementation of policies and weak economic performance under the Poverty Reduction and Growth Facility (PRGF) arrangement. The government formulated a new Economic Recovery Strategy for Wealth and Employment Creation (ERSWEC) aimed to address major macroeconomic vulnerabilities. Executive Directors emphasized the need for domestic debt reduction, the restructuring of spending, and a sustained implementation of the reform agenda. They suggested that bold reforms will be essential to encourage private investment and to mobilize adequate donor support for the reforms.
This paper discusses key findings of the Fourth Review Under the Poverty Reduction and Growth Facility for Armenia. Armenia’s economy performs strongly. All end-December 2006 quantitative and all but one structural performance criteria were observed. The main policy challenges are to broaden economic growth, raise tax revenues, and manage large foreign exchange inflows. Fiscal policy remains appropriate. Meeting the ambitious 2007 revenue target will require broadening the tax base and strengthening administration. The stance of monetary policy is appropriate.
This recent economic developments report (RED) provides background information on economic developments in the Comoros during 1997–2000. Revenue and domestic expenditure developments resulted in small overall domestic deficits over much of the period, equivalent of 0.4 percent of GDP in 1998 and declining to 0.2 percent of GDP in both 1999 and 2000. With no source of financing, domestic or external, the Anjouan authorities accumulated substantial wage arrears, estimated at about 15 months at end-2000, as well as suppliers arrears.
The Selected Issues paper discusses Cambodia’s poverty and growth, private sector development, public financial management reform, and debt sustainability. It summarizes the Poverty Assessment and describes the regime of tax incentives, costs, and limits for private investment. It also summarizes the assessment of Cambodia’s Public Expenditure Management system and Public Financial Management Reform Program. It highlights the key reform priorities, and provides historical background on Cambodia’s external and domestic debt. It also includes a statistical appendix and a summary of the tax system.