Social Science > Poverty and Homelessness
Abstract
This paper aims to assess the economic impact of the IMF’s support through its facilities for low-income countries. It relies on two complementary econometric analyses: the first investigates the longer-term impact of IMF engagement—primarily through successive medium-term programs under the Extended Credit Facility and its predecessors (and more recently the Policy Support Instrument)—on economic growth and a range of other indicators and socioeconomic outcomes; the second focuses on the role of IMF shock-related financing—through augmentations of Extended Credit Facility arrangements and short-term and emergency financing instruments—on short-term macroeconomic performance.
Abstract
As part of its mandate, the IMF seeks to create the conditions necessary for sustained high-quality growth, which encompasses a broad range of elements. These include sound macroeconomic policies, growth-enhancing structural reforms, good governance, and such social policies as cost-effective social safety nets and targeted social expenditures. This paper reviews the IMF's policy advice in two key areas of social policy: social safety nets and public spending on education and health care. It was initiated as part of the work by the World Bank and IMF to strengthen the poverty focus of adjustment programs in low-income countries, in particular within the framework of the Initiative for Heavily Indebted Poor Countries (HIPCs).
Abstract
This paper presents a study that focuses on specific adjustment programs for limited periods and is aimed largely at analyzing the short-run implications of the policy measures. The longer run implications are also discussed whenever relevant, since much of the rationale for policies and many of the beneficial effects on the poor are likely to be realized over time. The study also notes any compensatory targeting measures oriented to the poor, together with their implications for the adjustment efforts and the political viability of the programs. These analyses may provide lessons for improving the design of future adjustment programs. The chapter also summarizes the sample countries and programs; and describes the methodology used in the study. The results of the study suggest that adjustment programs in general have important distributional implications. During the process of adjustment, it is inevitable that some social groups gain while others lose, particularly when adjustment is aimed at a shift in sectoral resource allocation.