Social Science > Demography

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Mr. Alexei P Kireyev
This paper reviews the significant macro-fiscal challenges posed by climate change in Djibouti and the costs of mitigation and adaptation policies. The paper concludes that Djibouti is susceptible to climate change and related costs are potentially large. Investing now in adaptation and mitigation has large benefits in terms of reducing the related costs in the future. Reforms to generate the fiscal space are therefore needed and investment for mitigation and adaptation to climate change should be built into the long-term fiscal projections. Finally, concerted international efforts and stepping up regional cooperation could help moderate climate-related macro-fiscal risks.
Mr. Alexei P Kireyev
The paper examines the poverty-reducing and distributional characteristics of Djibouti’s economic growth, and discusses policies that might help make growth more inclusive. It covers the period between 2002 and 2013, for which comparable household surveys are available. The main findings are that while in the past decade the overall level of poverty in Djibouti declined, there have been no clear signs of improvements in either equality or growth inclusiveness. Growth has not been inclusive and benefitted mainly those in the upper part of the income distribution. These conclusions should be treated as indicative. Progress in poverty reduction and inclusiveness would require not only sustained high growth but also the creation of opportunities in sectors with high earning potential for the poor. Better targeted social policies and more attention to the regional distribution of spending would also help reduce poverty and improve inclusiveness.
International Monetary Fund
The modern economy of the Republic of Djibouti is based on rents directly or indirectly originating from the international port of Djibouti and from the country’s strategic position. The Poverty Reduction Strategy Paper discusses that the growth recorded over the last five years is essentially driven by the increase in foreign direct investment—but especially by the activities of the Port of Djibouti. The informal economy constitutes a major proportion of the economic activities of Djibouti and provides a livelihood for much of the Djibouti population.
International Monetary Fund
This Joint Staff Advisory Note focuses on the Poverty Reduction Strategy Paper (PRSP) for Djibouti. Djibouti’s National Initiative for Social Development (“Initiative Nationale pour le Développement Social”—INDS) provides a comprehensive vision for economic growth and poverty reduction. Notwithstanding some important achievements of the PRSP-I, overall progress in achieving its objectives has been limited. IMF staff commends the government for a well-designed and ambitious poverty reduction strategy. IMF staff considers that the INDS benefits from better prioritization and draws lessons from the shortcomings in the implementation of the PRSP-I.
International Monetary Fund
Following a participatory process involving all development players, the Poverty Reduction Strategy Paper (PRSP) on Djibouti sets goals for poverty reduction and improvement of inhabitants’ living conditions. Analysis of the results of the first three years of implementation of the PRSP reveals a number of significant achievements but shows that chronic weaknesses are still undermining the country’s development efforts. These results were achieved through implementation of priority measures in the social sectors and in the areas of growth support and preservation of macroeconomic stability.
International Monetary Fund
This Poverty Reduction Strategy Paper (PRSP) on Djibouti explains past strategies and the PRSP formulation process. Djibouti suffers from a gross lack of reliable health statistics. Available information gives only a fragmented picture of the reality, but globally, it reveals a difficult health situation. The promotion of a coherent and integrated employment policy must be one of the cornerstones of the poverty reduction strategy. Being a new country with few human resources, Djibouti’s governance problems considerably limit the effectiveness of government economic and social programs for the poor.