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Mr. Andrew Berg
,
Mr. Mumtaz Hussain
,
Mr. Shaun K. Roache
,
Ms. Amber A Mahone
,
Mr. Tokhir N Mirzoev
, and
Mr. Shekhar Aiyar

Abstract

This study analyzes key issues associated with large increases in aid, including absorptive capacity, Dutch disease, and inflation. The authors develop a framework that emphasizes the different roles of monetary and fiscal policy and apply it to the recent experience of five countries: Ethiopia, Ghana, Mozambique, Tanzania, and Uganda. These countries have often found it difficult to coordinate monetary and fiscal policy in the face of conflicting objectives, notably to spend the aid money on domestic goods and to avoid excessive exchange rate appreciation.

Yongzheng Yang
,
Mr. Robert Powell
, and
Mr. Sanjeev Gupta

Abstract

Au cours des dix prochaines années, les pays africains seront les principaux bénéficiaires de l'augmentation de l'aide extérieure, qui vise à les aider à atteindre les objectifs du millénaire pour le développement. Ce manuel vise à aider ces pays à évaluer les effets macroéconomiques de l'expansion de l'aide et à surmonter les défis qu'ils impliquent. Il se veut une référence pour les responsables, les économistes praticiens sur le terrain et le personnel des institutions financières internationales et des organismes donateurs qui participent à l'élaboration de stratégies à moyen terme pour les pays africains, notamment dans le contexte des documents de stratégie pour la réduction de la pauvreté. Le manuel présente cinq directives principales pour l'élaboration de scénarios d'expansion visant à aider les pays à déterminer les questions politiques importantes pour une gestion efficace de l'augmentation des flux d'aide : comment absorber autant d'aide extérieure que possible, comment augmenter la croissance à court et à moyen terme, comment promouvoir la bonne gouvernance et réduire la corruption, comment préparer une stratégie de sortie pour faire face à une diminution de l'aide, et comment réévaluer régulièrement le dosage de mesures.

Yongzheng Yang
,
Mr. Robert Powell
, and
Mr. Sanjeev Gupta

Abstract

Over the next decade, African countries are expected to be the largest beneficiaries of increased donor aid, which is intended to improve their prospects for achieving the Millennium Development Goals. This handbook will help these countries assess the macroeconomic implications of increased aid and respond to the associated policy challenges. The handbook is directed at policymakers, practicing economists in African countries, and the staffs of international financial institutions and donor agencies who participate in preparing medium-term strategies for African countries, including in the context of poverty reduction strategy papers. It provides five main guidelines for developing scaling-up scenarios to help countries identify important policy issues involved in using higher aid flows effectively: to absorb as much aid as possible, to boost growth in the short to medium term, to promote good governance and reduce corruption, to prepare an exit strategy should aid levels decrease, and to regularly reassess the policy mix.

Abstract

This volume, edited by Michel A. Dessart and Roland E. Ubogu, records the presentations made and discussions held during the Inaugural Seminar of the Joint Africa Institute (JAI). The JAI was established in Abidjan, Côte d'Ivoire, by the African Development Bank, the IMF, and the World Bank to meet the pressing training needs of the African continent. The participants discussed four main topics: the changing role of the state, governance, and new capacity requirements; the challenge of achieving macroeconomic stability in Africa; the requirement for capacity building in Africa; and the role of international financial institutions in capacity building in Africa. The seminar was held in November 1999, but the topics and recommendations of the seminar remain current and of particular importance today. The seminar was held in English and French, and both language versions are contained in this volume. 240 pp. 2001

Mr. Kamau Thugge
and
Mr. Anthony R. Boote

Abstract

Este folleto describe la iniciativa que emprendieron el FMI y el Banco Mundial en 1996 para abordar de manera integral la carga global de la deuda de determinados países pobres muy endeudados (PPME) que estaban aplicando programas de ajuste y reforma con el respaldo de ambas instituciones. El objetivo de esta Iniciativa es reducir la deuda de estos países a niveles sostenibles de modo que puedan cumplir con sus obligaciones corrientes y futuras de servicio de la deuda sin comprometer indebidamente su crecimiento económico. Este folleto describe los fundamentos y las principales características de la Iniciativa, según fue concebida originalmente en 1996, y su implementación hasta el cuarto trimestre de 1999, que culminó en la aprobación a finales de ese año de la Iniciativa Reforzada para los PPME, cuya finalidad es suministrar un alivio de la deuda más profundo y más rápido a un mayor número de países. La Iniciativa Reforzada para los PPME también busca asegurar que el alivio de la deuda esté integrado en una estrategia de reducción de la deuda de alcance más general, formulada con una participación de amplia base y adaptada a las circunstancias de cada país.

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
Mr. Kamau Thugge
and
Mr. Anthony R. Boote

Abstract

This pamphlet describes the IMF-World Bank initiative begun in 1996 to address in a comprehensive manner the overall debt burden of eligible heavily indebted poor countries (HIPCs) pursuing programs of adjustment and reform supported by the two organizations. The aim of the Initiative is to reduce these countries debt to sustainable levels so that they can meet current and future debt service obligations without unduly compromising growth. This pamphlet describes the rationale for and the main features of the Initiative as it was originally conceived in 1996 and its implementation through the fall of 1999, which culminated in the approval of an enhanced HIPC Initiative in late 1999 that is aimed at providing deeper and more rapid debt relief to a larger number of countries. The enhanced HIPC Initiative also seeks to ensure that debt relief is integrated into a comprehensive poverty reduction strategy that is developed with broad-based participation and tailored to the country's circumstances.

International Monetary Fund

Abstract

This paper describes the Heavily Indebted Poor Countries (HIPC) Initiative and suggests that it should enable HIPCs to exit from the debt-rescheduling process. It argues that implementation of the Initiative should eliminate debt as an impediment to economic development and growth and enable HIPC governments to focus on the difficult policies and reforms required to remove the remaining impediments to achieving sustainable development. The paper describes the implementation of the Initiative through the end of September 1998.

Jean-Pierre Briffaut
,
Mr. George Iden
,
Mr. Peter C. Hayward
,
Mr. Tonny Lybek
,
Mr. Hassanali Mehran
,
Mr. Piero Ugolini
, and
Mr. Stephen M Swaray

Abstract

This study takes stock of progress made so far in the financial sectors of sub-saharan African countries. It recommends further reforms and specific measures in the areas of supervision, development of monetary operations and financial markets, external sector liberalization, central bank autonomy and accountability, payments system, and central bank accounting and auditing.