primarily on fiscal adjustment, which entailed cutting expenditures (particularly real wages, subsidies, and capital outlays) and tightening budget constraints on state enterprises. Kazakhstan and the Kyrgyz Republic focused on stateenterpriserestructuring early and eliminated directed credits, but the other three countries moved much more slowly in this area.
All five countries reduced inflation dramatically; currencies were stabilized—some even appreciated in real terms; and parallel market premiums were reduced (except in Uzbekistan, until very recently, and
countries, therefore, initially opted for money-based stabilization programs, with some exchange rate flexibility allowed under managed floats. Under these programs, the burden of stabilization fell primarily on fiscal adjustment, which entailed cuts in expenditure (notably real wages, subsidies, and capital outlays) and the tightening of budget constraints on state enterprises. Progress in the latter area varied across countries. Kazakhstan and the Kyrgyz Republic focused attention on stateenterpriserestructuring early on and eliminated directed credits, while the
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III. Stylized Facts
IV. Demographic Determinants of Household Saving Behavior
V. Potential Explanations.
A. Habit Formation
B. Shifts in Social Expenditures
C. Durables Purchases and Savings
D. Housing Purchases and Savings
E. Effects of StateEnterpriseRestructuring on Saving Behavior
F. Target Savings
V. A Composite Sketch
VI. Discussion and Implications for Aggregate Saving Patterns
Statistics Guide for Users and Compilers
Reserve Bank of Zimbabwe
Zimbabwe StateEnterpriseRestructuring Agency
State Owned Enterprise
Republic of Zimbabwe Public Finance Management Act (2009)
Zimbabwe Public Sector Pension Fund
Unified Councils Pension Fund
IMF World Economic Outlook
Zimbabwe Asset Management Corporation
Zimbabwe Electricity Supply Authorities Pension Fund
Drug Information and Poisons Advice Centre
National Blood Transfusion Services
Sports and Recreation Commission
Zimbabwe Schools Examination Council
Employment Creation Fund
National Coordinating Unit
Stadia Revolving Fund
Zimbabwe Tourism Authority
National Economic Consultative Forum
Standard Development Fund
Environment Management Agency
National Economic Inspectorate Conduct
Farmer Development Trust
National Education and
contained at 13 percent as a result of a sharp decline in net foreign assets, reflecting the fall in official reserves.
Structural reforms are focused on current plans to improve the financial sector, public enterprises, public administration, and pensions. The authorities are implementing plans for restructuring and management changes in the two state banks and for an enhanced bank supervision framework for the commercial bank sector. While the privatization and stateenterpriserestructuring program continues, the challenge remains to reform the civil service and
rationalizing benefits to workers in both the public and private sectors. There was broad support for linking labor market reforms to stateenterpriserestructuring and private sector development, to facilitate redeployment of jobs from the public to the private sector.
Directors commended the authorities for maintaining financial system stability through sound macroeconomic policies and effective banking regulation and supervision. They welcomed the FSAP findings that the most critical elements of the systemic liquidity and crisis management policies are in place. They
that the goal of monetary policy will be to lower inflation, and they are making additional efforts to put in place the preconditions for successful inflation targeting. Improving financial market conditions and a stabilizing exchange rate will rebuild confidence in the financial system and free monetary policy to target inflation.
Structural priorities under the program are threefold: in the banking sector to restore credit flows to the real sector; in the public sector, greater transparency of government operations, and stateenterpriserestructuring; and in the
“Following the recent adoption of an overall framework for SOCB reform, top priority will now need to be given to defining and implementing the restructuring plans for each of the four large SOCBs, with adequate transparency and close oversight from the State Bank of Vietnam.
“The government’s three-year SOE reform plan is a meaningful first step in the medium-term process of stateenterpriserestructuring. Sustained implementation of this plan, together with safeguards to strengthen SOE financial discipline and curb credit to SOEs, would advance the