No Roads? No Problem: The Leapfrogging Drones of Rwanda

By IMFBlog

January 12, 2018

Zipline drone on a launch pad at operations center in Muhanda, Rwanda. (photo: James Akena/Reuters/Newscom).

What’s the best solution to a lack of infrastructure? Find a solution that doesn’t require infrastructure. That’s what Zipline has done in Rwanda—a start-up that deploys drones to make emergency medical deliveries to remote hospitals and clinics.

“Obviously in instances where Zipline can make a delivery to a place that wouldn't otherwise be reachable by roads, that's a good example of leapfrogging over the absence of infrastructure,” Zipline CEO Keller Rinaudo said. Continue reading “No Roads? No Problem: The Leapfrogging Drones of Rwanda” »

The Art in Artificial Intelligence: Make the Robots Serve the Public Good

By Brian McNeill

January 11, 2018

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Artificial intelligence can create a roadmap for future opportunities if utilized appropriately (photo: monsitj/iStock by Getty Images).

Over the past few years, artificial intelligence has rapidly matured as a viable field of technology. Machines that learn from experience, adjust to new inputs, and perform tasks once uniquely the domain of humans, have entered our daily lives in ways seen and unseen. Given the current breakneck pace of change and innovation, the question for governments and policymakers is how to harness the benefits of artificial intelligence, and not be trampled by the robot takeover of our nightmares. The answer is simple: make them work for us. Continue reading “The Art in Artificial Intelligence: Make the Robots Serve the Public Good” »

Corruption Disruption

By Christine Lagarde

December 8, 2017

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Corruption can have devastating effects on economic growth and stability (photo: Patric Sandri IKON Images/Newscom)

Why does the IMF care so deeply about corruption? The reason is simple. The job of the IMF is to protect global economic stability and promote strong, sustainable, balanced, and inclusive economic growth. And this becomes difficult, if not impossible, to achieve in the presence of entrenched and institutionalized corruption. Continue reading “Corruption Disruption” »

Chart of the Week: Sharing the Wealth: Inequality and Who Owns What

By IMFBlog

December 7, 2017

Luxury yachts in Monaco: The surge in top incomes, combined with high savings, has resulted in growing wealth inequality (photo: Eric Gaillard/Newscom).

Income inequality among people around the world has been declining in recent decades. But the news is not all good. Inequality within many countries has increased, particularly in advanced economies.

In addition to income inequality, wealth inequality—what you have accumulated, as opposed to what you earn—is closely related, and reflects differences in savings, inheritances, and bequests. Continue reading “Chart of the Week: Sharing the Wealth: Inequality and Who Owns What” »

Taxes, Debt and Development: A One-Percent Rule to Raise Revenues in Africa

By Vitor Gaspar and Abebe Aemro Selassie

December 5, 2017

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School children in Ghana: building a country’s tax capacity helps pay for education and health care (photo: Vacca Sintesi/SIPA/Newscom).

Tax revenues play a critical role for countries to create room in their budgets to increase spending on social services like health and education, and public investment. At a time when public debt levels in sub-Saharan Africa have increased sharply, raising tax revenues is the most growth-friendly way to stabilize debt. More broadly, building a country’s tax capacity is at the center of any viable development strategy to meet the ongoing needs for expanding education and health care, and filling significant infrastructure gaps. Continue reading “Taxes, Debt and Development: A One-Percent Rule to Raise Revenues in Africa” »

More People, More Technology, More Jobs: How to Build Inclusive Growth

By Stefania Fabrizio and Andrea F. Presbitero

December 4, 2017

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Pretoria, South Africa: technicians work inside a new locomotive (photo: Zhai Jianlan Xinhua News Agency/Newscom).

Population growth and technological innovation don’t necessarily have to widen inequality in developing countries. They can also offer new opportunities to increase growth and create jobs: the long-term outcomes depend on today’s policy choices. But those choices are not easy because policies for sustained and inclusive growth may conflict with short-term needs. We look at the trade-offs and how to balance short- and long-term goals for sustainable and inclusive growth. Continue reading “More People, More Technology, More Jobs: How to Build Inclusive Growth” »

Roads or Schools: A Critical Tradeoff

By Manoj Atolia, Bin Grace Li, Ricardo Marto, and Giovanni Melina

November 9, 2017 

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Low-income countries tend to spend less on schools than on roads as a share of GDP (photo: iStock by Getty Images).

Roads or schools? It’s a question akin to the “guns or butter” choice that governments around the world confronted in the 20th century: How to spend a nation’s finite resources to produce the maximum benefit for its people.

In our recent IMF Working Paper, we find that low-income countries tend to spend less on schools than on roads as a share of GDP—even though investment in education may be a more pressing need in their societies. 

Continue reading “Roads or Schools: A Critical Tradeoff” »

Inequality: Fiscal Policy Can Make the Difference

By Vitor Gaspar and Mercedes Garcia-Escribano

 October 11, 2017

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Wealth and poverty side-by-side in Rio de Janeiro, Brazil: inequality is rising within countries around the world (photo: Jean-Marc David/SIPA/Newscom). 

Income inequality among people around the world has been declining in recent decades. This is due to countries like China and India’s incomes catching-up to advanced economies. But the news is not all good. Inequality within countries has increased, particularly in advanced economies. Since the global economic recovery has gained pace and is now widespread, policymakers have a window of opportunity to respond with reforms that tackle inequality, and our new Fiscal Monitor shows how the right mix of fiscal policies can make the difference.

Continue reading “Inequality: Fiscal Policy Can Make the Difference” »

Financial Stability Improves, But Rising Vulnerabilities Could Put Growth at Risk

By Tobias Adrian

October 11, 2017

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The headquarters of the European Central Bank in Frankfurt, Germany: To avoid causing market turbulence, central banks will have to clearly communicate their plans to gradually unwind crisis-era policies (photo: Caro/Sven Hoffman/Newscom).

It seems like a paradox. The world’s financial system is getting stronger, thanks to healthy economic growth, buoyant markets, and low interest rates. Yet despite these favorable conditions, dangers in the form of rising financial vulnerabilities are starting to loom. That is why policymakers should act now to keep those vulnerabilities in check. Continue reading “Financial Stability Improves, But Rising Vulnerabilities Could Put Growth at Risk” »

Inequality: Tools from the Old Masters to Help Today’s Policymakers

By Vitor Gaspar, Paolo Mauro, and Tigran Poghosyan

October 3, 2017

Unemployed day laborers in South Africa: the country has relatively high income, but also high inequality (photo: Rogan Ward/Newscom).

With inequality rising in many countries, policymakers need to choose the best fiscal policies that will help share the benefits of economic growth, and in so doing, make it more inclusive.

The early 20th century English economist Arthur Pigou, among others, saw economic welfare as influenced by both “the size of the national dividend” and “the way in which it is distributed among the members of the community.” Continue reading “Inequality: Tools from the Old Masters to Help Today’s Policymakers” »

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