Appendix

Developing Countries and Country Groups1,2,3,4

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Developing countries here refers to all countries that are not “higher income countries” in the World Bank classification system, a usage adopted here because it is aligned with the meaning of the term in the external debate. Given their systemic size, China and India are excluded from the sample of developing countries.

59 countries in bold typeface are low-income developing countries (LIDC) and 73 countries in regular typeface are other developing countries (Other). The LIDC are countries eligible for IMF’s concessional financial assistance with a per capita Gross National Income (measured according to the World Bank’s Atlas method) in 2011 of below twice the IDA’s effective operational cut-off level, and Zimbabwe. ‘Other Developing’ are the non-LIDC emerging market and developing countries. 37 countries, with an asterisk,’*’, included in the list of countries in a post-conflict and fragile situation, are referred to as ‘Fragile States’, as of May 2015 (IMF Board Paper). Somalia (LIDC & fragile state) is excluded due to insufficient macro data.

38 countries, with two asterisk,’**’, signs are in the list of countries that have qualified for, are eligible or potentially eligible and may wish to receive HIPC Initiative Assistance (as of April 2015).

Georgia, which is not a member of the Commonwealth of Independent States, is included in this group for reasons of geography and similarities in economic structure.

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1

Valuable inputs to the paper were received from William Stephen Clark, Ruud de Mooij, Valentina Flamini, Jason Harris, Mario Mansour, Ian Parry, Ha Vu, Yiqun Wu, Daniel Hardy, Michael Papaioannou, Jinfan Zhang, and Andrew Kitili. The paper has also benefitted from the administrative support of Dilcia Noren and Nazma Nunhuck. Valuable research assistance was provided by Arshia Karki.

2

SDG agenda “Transforming Our World: The 2030 Agenda for Sustainable Development.”

3

See World Bank and IMF (2015) for a discussion of the results achieved in meeting the MDGs.

4

The UNFCCC is the primary intergovernmental forum for developing the global response to climate change.

5

The IMF has also recently introduced a data dissemination tool, the Enhanced General Data Dissemination System (e-GDDS), that can aid countries and the international community in monitoring progress toward these SDGs. The e-GDDS helps countries produce and disseminate key macroeconomic and financial data in standard format using modern technology.

6

Effective policies in these areas will also facilitate the attainment of other SDGs, such as ensuring sustainability and access to water (SDG 6) and energy (SDG 7).

7

For further discussion, see IMF (2015a).

8

The DIG (Debt, Public Investment and Growth) and DIGNAR (Debt, Investment, Growth and Natural Resources) models, developed in Buffie and others 2012 and Melina, Yang, and Zanna 2014, and their extensions, analyze the investment-growth nexus and have been applied to 24 developing countries, including Afghanistan, Benin, Burkina Faso, Republic of Congo, Central African Economic and Monetary Community (CEMAC), Chad, Côte d’Ivoire, Ethiopia, Ghana, Guinea, Kazakhstan, Liberia, Mozambique, Myanmar, Niger, Rwanda, Senegal, Sierra Leone, Togo, and Yemen.

10

In assessing the growth impact of increases in investment, both the efficiency and rate of return of public capital need to be considered, since capital scarcity, which is pervasive in developing countries, can imply high rates of return.

11

Gollin (2010) reviews theoretical arguments and empirical evidence for the hypothesis that agricultural productivity improvements lead to structural transformation and economic growth in developing countries. For countries with large populations in rural and remote areas and limited access to international markets, agricultural development is essential for economic growth. For other countries, the importance of agriculture-led growth will depend on the relative feasibility and cost of importing food.

[1]

Fan, Kanbur, and Zhang (2009) present a comprehensive survey on the forces that accounts for increased inequality in China.

12

Energy subsidies, for example, are considered by many countries a way to protect the poor. However, energy subsidies are highly inequitable because they mostly benefit upper-income groups (see Section IV).

14

As a general point, policies are necessary conditions but may not be sufficient to address gender inequality, as cultural, societal, and religious norms are not easily influenced by economic or social policies. This paper does not take a normative stance on these issues.

15

The World Economic Forum’s Global Risks 2015 Report (WEF 2015) lists water crises as the top global risk in terms of impact and eighth in terms of likelihood.

16

“Pre-tax subsidies” arise when energy prices paid by users are less than the supply cost, inclusive of transportation and distribution costs. “Post-tax subsidies” is a wider measure that includes both: (a) any pre-tax subsidies, and (b) the implicit subsidies provided by failing to charge for the costs of the environmental damage caused by energy use; these environmental costs include the impact on global warming, air pollution, and (for road fuels) externalities from traffic congestion, accidents, and road damage. (For further discussion, see Coady and others, 2015 and Parry and others 2014).

17

In 2013, less than 20 percent of total disaster losses in developing countries were insured in developing countries, compared with 60 percent in North America (World Bank 2013b).

18

Financial market participants share the risk of a disaster by allowing the issuer to forgo repayment of the bond principal if a catastrophe occurs (Cummins and Mahul 2009).

From Ambition to Execution: Policies in Support of Sustainable Development Goals
Author: Ms. Stefania Fabrizio, Mr. Rodrigo Garcia-Verdu, Ms. Catherine A Pattillo, Adrian Peralta-Alva, Mr. Andrea F Presbitero, Baoping Shang, Ms. Genevieve Verdier, Mrs. Marie T Dal Corso, Kazuaki Washimi, Ms. Lisa L Kolovich, Ms. Monique Newiak, Mr. Martin Cihak, Ms. Inci Otker, Luis-Felipe Zanna, and Ms. Carol L Baker