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Mr. Benedict J. Clements
,
Frank Eich
, and
Mr. Sanjeev Gupta

Abstract

Pension reform is high on the agenda of many advanced and emerging market economies, for many reasons. First, public pensions often constitute a large share of government expenditure. Second, population aging means that reforms would be needed just to keep pension spending from rising in the future. Third, in many economies, low or falling pension coverage will leave large segments of the population without adequate income in old age and at risk of falling into poverty. Although a number of studies have assessed the effects of pension reforms on fiscal sustainability, a systematic analysis of equity issues in pension systems—and how countries have grappled with these issues—has yet to be undertaken. This book brings together the latest research on equity issues related to pension systems and pension reforms in the post-crisis world. Some of the key issues covered include: the effect of pension systems on intergenerational equity and the impact of pension reforms on poverty, the effects of pension reform measures on fiscal sustainability and equity, and the fiscal consequences of achieving different equity goals. It also presents country case studies. The volume provides a rich menu of material to assist policymakers and academic audiences seeking to understand the latest research in this area, as well as the lessons and challenges for the design of reforms.

Ms. Camelia Minoiu
and
Ms. Shatakshee Dhongde
Current estimates of global poverty vary substantially across studies. In this paper we undertake a novel sensitivity analysis to highlight the importance of methodological choices in estimating global poverty. We measure global poverty using different data sources, parametric and nonparametric estimation methods, and multiple poverty lines. Our results indicate that estimates of global poverty vary significantly when they are based alternately on data from household surveys versus national accounts but are relatively consistent across different estimation methods. The decline in poverty over the past decade is found to be robust across methodological choices.
Mr. Robert Gillingham

Abstract

The Poverty Reduction and Growth Facility (PRGF) is used by the IMF to provide support for countries’ implementation of their poverty reduction and growth strategies. A key requirement in the design of PRGF programs is understanding the effects of reform program measures on vulnerable groups—particularly the poor—and how to devise measures to mitigate any negative effects. Poverty and social impact analysis (PSIA) is a critical instrument for pursuing this goal. The IMF has therefore established a small group of staff economists to facilitate the integration of PSIA into PRGF-supported programs. In this book, the group’s members review analytical techniques used in PSIA as well as several important topics to which PSIA can make valuable contributions. These reviews should prove useful and interesting to readers interested in PSIA in general and the IMF’s PSIA efforts in particular.

Mr. Paul Cashin
,
Ms. Catherine A Pattillo
,
Ms. Ratna Sahay
, and
Mr. Paolo Mauro
This paper provides a brief and selective overview of research on the links between macroeconomic policies and poverty reduction. Using the Human Development Index as a measure of well-being, the progress made by 100 countries during 1975–98 is presented, and its association with macroeconomic factors is explored. Several potential avenues for future research are also outlined.
Mr. Arye L. Hillman
This paper is concerned with economic consequences of unethical governance. A framework is set out, based on principles of Friedrich Nietzsche, that ties poverty and inequality to unethical behavior of the strong toward the weak. The paper contributes to an understanding of why poverty and inequality have remained entrenched in some societies in spite of repeated programs intended to improve living standards. The purpose is to include ethics of governance, and, in particular, unethical behavior of the strong toward the weak, in preconditions for economic development.
Mrs. Ritha S. Khemani
,
Mr. Sanjeev Gupta
,
Mr. Calvin A McDonald
,
Mr. Louis Dicks-Mireaux
, and
Marijn Verhoeven

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).

International Monetary Fund. External Relations Dept.
The Web edition of the IMF Survey is updated several times a week, and contains a wealth of articles about topical policy and economic issues in the news. Access the latest IMF research, read interviews, and listen to podcasts given by top IMF economists on important issues in the global economy. www.imf.org/external/pubs/ft/survey/so/home.aspx
International Monetary Fund
This Selected Issues paper reviews the economic development in the Philippines during the 1990s. Growth, which virtually came to a halt in the early 1990s, picked up in 1993 and accelerated steadily to almost 7 percent by end-1996, fueled by an expansion in exports and investment. At the same time, the fiscal position strengthened, inflation was successfully brought down to single digits, and with large capital inflows, particularly in 1996, gross international reserves rose to record levels. This reversal of economic fortunes was largely the result of major reforms undertaken in the past decade.
Mr. Philip R. Gerson
Income distribution in the Philippines is highly uneven, and poverty rates are higher than in other ASEAN countries. In addition, although the poverty rate has declined over time, the rate of decline has been lower than in other countries, and income inequality has been persistent. These facts are due to historically slow economic growth, owing in part to poor policies, as well as to past failures to reduce structural impediments to a more equal distribution of income. Despite reforms in recent years, it will likely take some time to erase the effects of past policies.