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Johanna Tiedemann, Veronica Piatkov, Dinar Prihardini, Juan Carlos Benitez, and Ms. Aleksandra Zdzienicka
Small Developing States (SDS) face substantial challenges in achieving sustainable development. Many of these challenges relate to the small size and limited diversification of their economies. SDS are also among the most vulnerable countries to the impact of climate change and natural disasters. Meeting SDS sustainable development goals goes hand-in-hand with building their climate resilience. But the additional costs to meet development and resilience objectives are substantial and difficult to finance. This work adapts the IMF SDG Costing methodology to capture the unique characteristics and challenges of climate-vulnerable SDS. It also zooms into financing options, estimating domestic tax potential and discussing the possibility of accessing ‘climate funds.’
A.P. C J

supported by the Poverty Reduction and Growth Facility of the IMF, the design of which was consistent with the DRC government’s poverty reduction strategy. The economics of civil war and sources of growth Chapter 3 summarizes the most recent research on conflict, with a focus on its economic, rather than social or political, dimensions. It offers a number of recommendations regarding the main areas in which to concentrate efforts to assist countries emerging from conflicts. Chapter 4 recalls the experience of about 20 countries in sub-Saharan Africa that have

PREM C. GARG and SAMIR EL-KHOURI

a temporary “works program” to help alleviate immediate poverty and unemployment pressures; • concentrate efforts on areas where living standards are especially low (as in Gaza); • maximize the use of local inputs, particularly skilled labor. Where necessary, however, outside expertise should be tapped selectively to supplement local capacity; • make use of local capacity for program implementation, including the UN system, nongovernmental organizations (NGOs), universities, and research institutes; • emphasize training and institution

International Monetary Fund

authorities remain committed to speeding up implementation and preparing several companies for privatization. In this context, they succeeded in selling a 15 percent stake in Transelectrica and will concentrate efforts in 2012 to sell shares in Hidroelectrica, Nuclearelectrica, Romgaz, and Transgaz. In addition, the authorities will continue their privatization efforts of a number of companies, including of the new energy producers, Hunedoara and Oltenia. In conclusion, my authorities concur that the current precautionary Stand-By Arrangement will maintain the reform

International Monetary Fund. Monetary and Capital Markets Department

powers and mechanisms. The authorities should also be conscious of their collective roles to protect financial stability and to coordinate within their respective areas of responsibility. Clear distribution of responsibilities should be sought, and gray legal areas should be uncovered and clarified. Finally, Efforts to increase financial inclusion should be supported by the development of a well-designed and inclusive National Strategy. Coordinated work among the authorities and stakeholders is necessary to establish a shared diagnosis, to concentrate efforts, and

Ms. Susan Creane, Rishi Goyal, A. Mushfiq Mobarak, and Miss Randa Sab

and the 1990s. For MENA policymakers trying to compete in an increasingly globalized world, the challenge now is to concentrate efforts where financial development has been weakest, as suggested by our comprehensive index. This means less government interference in the financial system, which will require cutting back on public ownership of financial institutions and minimizing monetary financing of budget deficits, investing in human resources (including strong management and financial skills), and strengthening the legal environment. These measures will not only