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Stepping up the Fight Against Money Laundering and Terrorist Financing

July 26, 2017

Money laundering and terrorist financing threaten economic stability. International cooperation is vital in the fight against misuse of the financial system (photo: CraigRJD/iStock by Getty Images)

Corrupt officials, tax cheats, and the financial backers of terrorism have one thing in common: they often exploit vulnerabilities in financial systems to facilitate their crimes.

Money laundering and terrorist financing can threaten a country’s economic and financial stability while funding violent and illegal acts. That is why many governments have stepped up the fight against such practices , helped by international institutions such as the IMF.

Continue reading “Stepping up the Fight Against Money Laundering and Terrorist Financing” »

By IMFBlog| July 26th, 2017|banking, correspondent banking, corruption, developing countries, Emerging Markets, Finance, Financial markets, financial policy, Financial regulation, Financing, Government, IMF, International Monetary Fund, Investment, Latin America, Low-income countries, Politics, Reform, taxation|0 Comments

Latest Outlook for The Americas: Back on Cruise Control, But Stuck in Low Gear

By Alejandro Werner

July 25, 2017

Versions in Español (Spanish), Português (Portuguese)

Shopping mall in Viña del Mar, Chile: Latin America is expected to recover gradually as most economies continue to face weak domestic demand (photo: Rodrigo Garrido/Newscom)

After disappointing growth over the past few years, economic activity in Latin America remains on track to recover gradually in 2017–18 as recessions in a few countries—notably Argentina and Brazil—are coming to an end. Our latest projections show the region growing by 1 percent in 2017 and 1.9 percent in 2018.

But amid low confidence, domestic demand continues to remain weak across most economies, and is expected to only recover slowly as actual output catches up to potential and internal sources of growth build strength, based on a decline in political and policy uncertainty across some major economies. Some countries in the region will need clear strategies to adjust further following a permanent loss in commodity revenues. Continue reading “Latest Outlook for The Americas: Back on Cruise Control, But Stuck in Low Gear” »

By IMFBlog| July 25th, 2017|capital flows, capital markets, Caribbean, commodities, Economic outlook, Economic research, education, Employment, Global Governance, Government, growth, inclusive growth, income, infrastructure, International Monetary Fund, labor markets, Latin America, Politics, productivity, structural reforms|0 Comments

IMF Support for the United Nations’ Sustainable Development Goals

By Stefania Fabrizio, Roland Kpodar, and Chris Lane

July 19, 2017

Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

Schoolchildren in line in Mali: Reducing the large gap between men’s and women’s education in some low-income states is one of the 2030 goals which IMF advice can address (photo: Stringer/Reuters/Newscom)

Since the adoption of the United Nation’s Sustainable Development Goals (SDGs) in 2015, we at the IMF have supported countries to reach their goals through policy advice, training, and financial support. Results will accrue over time, and we already see some notable progress. Continue reading “IMF Support for the United Nations’ Sustainable Development Goals” »

By IMFBlog| July 19th, 2017|climate change, developing countries, Economic outlook, Economic research, education, Emerging Markets, Employment, Environment, Finance, Gender issues, Government, Inequality, International Monetary Fund, jobs, labor force, Low-income countries, Middle East, Reform, South America, Uncategorized, unemployment, wages|0 Comments

Corrosive and Costly Corruption

By IMFblog

July 14, 2017

Corruption can hurt growth and ruin people’s economic chances (photo: Eugene Keebler/iStock)

Corruption can lead to pervasive distrust in government, generating violence, civil strife, and conflict. And the results are devastating for people.

Another problem is that corruption is costly—particularly for those who are already worse off. IMF research shows that in countries with greater levels of corruption, infant mortality and dropout rates are especially high, partly due to less spending on health and education. Reduced investment in these areas tends to hurt poor people the most, and contributes to higher inequality. Continue reading “Corrosive and Costly Corruption” »

By IMFBlog| July 14th, 2017|corruption, Economic research, Fiscal policy, Government, growth, inclusive growth, Inequality, International Monetary Fund, Investment, Politics, productivity, Public debt, taxation|0 Comments

Transparency Pays: Emerging Markets Share More Data

By Sangyup Choi and Stephanie Medina Cas

July 7, 2017

Versions in عربي (Arabic), 中文 (Chinese), 日本語, Français (French), (Japanese), Português (Portuguese), and Русский (Russian)

On the move in Mexico City, Mexico: emerging market economies that are transparent with their data can lower their borrowing costs (photo: Edgard Garrido/Reuters/Newscom)

If sunlight is the best disinfectant, as US Supreme Court Justice Louis Brandeis once famously said, can it also be a money maker? We have tried to quantify the financial gains from greater transparency that emerging market countries can achieve.

Continue reading “Transparency Pays: Emerging Markets Share More Data” »

By IMFBlog| July 7th, 2017|Africa, Asia, Debt Relief, Economic research, Emerging Markets, Government, International Monetary Fund, Investment, U.S.|0 Comments

Chart of the Week: Ireland’s Fight Against Income Inequality

By IMFBlog

June 30, 2017

Shoppers in Dublin, Ireland: the country has high income inequality, before taxes and transfers (photo: Caro Rupert Oberhaeuser/Newscom)

Ireland’s economy continues to recover after a housing market crash in 2008 plunged the country into a deep and severe crisis. The strong social welfare system provided an important cushion against the worst effects of the crisis.

Ireland’s tax-benefit system is one of the most effective in the European Union in redistributing income. The tax system is relatively progressive and funds a robust system of social benefits, a significant share of which is means-tested. Income inequality before taxes and transfers in Ireland is high—37 percent of income is held by the top 10 percent of income earners. Social transfers make up about 70 percent of income for the bottom 20 percent of earners.

Continue reading “Chart of the Week: Ireland’s Fight Against Income Inequality” »

By IMFBlog| June 30th, 2017|Economic research, Europe, Government, growth, health, inclusive growth, income, Inequality, International Monetary Fund, jobs, labor force, taxation, technology, trade, youth|0 Comments

Looking Back to Move Ahead

By IMFBlog

June 16, 2017

Ian Goldin at IMF lecture (photo: IMF staff)

While advances in science and technology are rapidly propelling human achievement into the future, Ian Goldin says history shows us how to handle the changes occurring in the world today. Continue reading “Looking Back to Move Ahead” »

By IMFBlog| June 16th, 2017|Fiscal policy, Globalization, Government, Inequality, International Monetary Fund, technology|0 Comments

The Compact with Africa—The Contribution of the IMF

By Christine Lagarde

June 12, 2017

Versions in عربي (Arabic), 中文 (Chinese), Deutsch (German), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

IMF Managing Director Christine Lagarde on a visit to Nigeria in 2016 (photo: IMF staff/Steve Jaffe)

Some of the world’s top policymakers and investors are gathering in Berlin to discuss a new initiative that could help reshape Africa’s economic future.

Millions of citizens could see tangible economic benefits from the recently launched Group of Twenty advanced and emerging economies' initiative, known as the “Compact with Africa.” The goal is to boost private investment by harnessing the expertise and resources of governments, investors, and international organizations.

The Compact is about facilitating projects that can lift productivity and living standards. It is about creating fresh opportunities on a continent where 70 percent of the population is under 35 years of age.

Continue reading “The Compact with Africa—The Contribution of the IMF” »

By IMFBlog| June 12th, 2017|Africa, developing countries, Economic outlook, Emerging Markets, Employment, Financial markets, G-20, Global Governance, Government, growth, inclusive growth, Inequality, infrastructure, interest rates, International Monetary Fund, Investment, jobs, labor force, labor markets, productivity|0 Comments

Restarting the Growth Engine in Sub-Saharan Africa

By IMFBlog

May 19, 2017

Version in Français (French)

The IMF’s latest economic health check of sub-Saharan Africa shows that growth fell to its lowest level in 20 years.

In this podcast, the IMF African Department’s Celine Allard, who oversaw the report, says that this drop brought a halt to the 5 to 6 percent growth rate that was enjoyed in the last two decades. Some factors contributing to this slowdown are lower commodity prices, the devastation of a severe drought—exacerbating crop infestation and leading to a famine affecting some 20 million people—and political conflicts that affect trade.

Continue reading “Restarting the Growth Engine in Sub-Saharan Africa” »

By IMFBlog| May 19th, 2017|Africa, Economic research, exchange rates, financial policy, Fiscal policy, Government, IMF, monetary policy, Public debt, structural reforms, Uncategorized|0 Comments

Beheading the Hydra: How the IMF Fights Corruption

By Alistair Thomson

May 18, 2017

Versions in عربي (Arabic), 中文 (Chinese), Français (French), 日本語 (Japanese), Русский (Russian), and Español (Spanish)

Corruption drains public resources and drags down economic growth in multiple ways (photo: dareknie/iStock by Getty Images)

Corruption—the abuse of public office for private gain—is a many-headed monster. It is pervasive in many countries, but only a fraction of cases make headlines; fewer are successfully prosecuted. Yet the cumulative burden is massive. By some estimates, bribery alone amounts to $1 trillion each year, and corruption more broadly to much more. While the precise figures are the subject of debate, the importance of the problem is not. Continue reading “Beheading the Hydra: How the IMF Fights Corruption” »

By IMFBlog| May 18th, 2017|Advanced Economies, capital markets, corruption, developing countries, Economic outlook, education, Emerging Markets, Global Governance, Government, growth, health, Inequality, International Monetary Fund, Investment, Politics, Spring Meetings|0 Comments

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