Inclusive Growth | IMF Blog

Corrosive and Costly Corruption

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

No Time to Stand Still: Strengthening Global Growth and Building Inclusive Economies

By Christine Lagarde

July 5, 2017

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

The port of Hamburg, Germany: G20 leaders meet to discuss policies to strengthen the global economic recovery (photo: Markus Lange/robertharding/Newscom)

Nearly sixty years ago, a little-known band called the Beatles arrived in Hamburg, got a haircut, recorded their first song, and found their sound.

Taking a cue from the Fab Four, world leaders gathering for the Group of Twenty Summit this week can make the most of their time in Hamburg—and leave Germany with a sound plan to strengthen global growth.

Continue reading “No Time to Stand Still: Strengthening Global Growth and Building Inclusive Economies” »

By IMFBlog| July 5th, 2017|Advanced Economies, aging, Asia, developing countries, Economic outlook, Economic research, Emerging Markets, G-20, Global Governance, inclusive growth, Inequality, International Monetary Fund, jobs, technology, 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

Assessing Global Imbalances: The Nuts and Bolts

By Maurice Obstfeld

June 26, 2017

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

Men playing chess: countries with rapidly aging populations need funds that they can draw down when their workers retire (photo: Caro/Jandke/Newscom)

Current account imbalances can be healthy or a sign of macroeconomic and financial stress—which makes their evaluation tricky. In line with its mandate of promoting international monetary cooperation, the IMF conducts annual external assessments for the world’s largest economies. The objective is to alert the global community to potential risks that countries need to address together.

Countries, like households, may spend above their incomes sometimes, and below them at other times. A country that spends above its income imports more goods and services than it exports and is said to have a current account deficit. It finances this deficit by incurring liabilities to the rest of the world, or by borrowing from it. Continue reading “Assessing Global Imbalances: The Nuts and Bolts” »

By IMFBlog| June 26th, 2017|capital markets, Economic outlook, Economic research, Emerging Markets, Global Governance, Globalization, inclusive growth, International Monetary Fund, Investment, labor markets, productivity|0 Comments

Fintech: Capturing the Benefits, Avoiding the Risks

By Christine Lagarde

June 20, 2017

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

A signboard at a store in Guangzhou, China, lists various forms of mobile payment (photo: Imagine China/Newscom)

When you send an email, it takes one click of the mouse to deliver a message next door or across the planet. Gone are the days of special airmail stationery and colorful stamps to send letters abroad.

International payments are different. Destination still matters. You might use cash to pay for a cup of tea at a local shop, but not to order tea leaves from distant Sri Lanka. Depending on the carrier, the tea leaves might arrive before the seller can access the payment. Continue reading “Fintech: Capturing the Benefits, Avoiding the Risks” »

By IMFBlog| June 20th, 2017|Advanced Economies, capital flows, capital markets, Economic outlook, Economic research, education, Emerging Markets, exports, Globalization, IMF, imports, inclusive growth, Investment, labor markets, productivity, technology, Transition|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

Lagarde—Lending an Ear to Young Voices

By IMFBlog

June 9, 2017

As Managing Director of the IMF, Christine Lagarde travels the world engaging with country officials, civil society, nongovernmental organizations, and media representatives. Lagarde also makes a point to engage with women and youth groups, to listen to their concerns, and to discuss their vision for their countries.

Continue reading “Lagarde—Lending an Ear to Young Voices” »

By IMFBlog| June 9th, 2017|education, Employment, Gender issues, growth, inclusive growth, International Monetary Fund, jobs, labor force, productivity, technology, Uncategorized, unemployment, youth|0 Comments

Every Woman Counts: Gender Budgeting in G7 Countries

By Christine Lagarde

May 13, 2017

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

Finance ministers and central bank governors from the G7 countries met in Bari, Italy, this weekend to consider global economic issues, including steps to maintain economic stability and improving gender equality as important agenda items.

Women’s economic empowerment has long been an international priority, of course. The G6—as it was then—was first created in 1975, a year named “International Women’s Year” by the United Nations to help more women worldwide realize their full potential. Mountain climber Junko Tabei masterfully demonstrated this potential when she became the first woman to conquer Mount Everest in that year. However, as the world dealt with the aftermath of the first oil shock and the end of the fixed exchange rate system, global economic stability and women’s empowerment were rarely part of the same conversation.

Junko Tabei, the first woman to climb Mount Everest and the “Seven Summits”—the highest mountains across seven continents (photo: John van Hasselt/Corbis/Getty Images)

How times have changed. Today, in discussions on the global economy, female economic empowerment is almost always on the agenda. Continue reading “Every Woman Counts: Gender Budgeting in G7 Countries” »

By IMFBlog| May 13th, 2017|Advanced Economies, Economic research, education, Employment, Gender issues, IMF, inclusive growth, labor force|0 Comments

A New Twist in the Link Between Inequality and Economic Development

By Francesco Grigoli

May 11, 2017

Version in عربي (Arabic), Español (Spanish)

Much has been written about the relationship between inequality and economic development, but theory remains inconclusive. When income is more concentrated in the hands of a few individuals, this can lead to less demand by the general population and lower investment in education and health, impairing long-term growth. At the same time, a certain level of inequality endows the rich with the means to start businesses, and creates incentives to increase productivity and investment, promoting economic activity. But the initial inequality levels also matter to explain why an increase in inequality varies in its impact on economic development across countries.

Continue reading “A New Twist in the Link Between Inequality and Economic Development” »

By IMFBlog| May 11th, 2017|capital flows, developing countries, Economic research, education, Employment, Financial markets, Gender issues, growth, inclusive growth, income, Inequality, International Monetary Fund, labor force, Uncategorized|0 Comments

The Economics of Trust

By IMFBlog

May 10, 2017

Trust in other people—the glue that holds society together—is increasingly in short supply in the United States and Europe, and inequality may be the culprit.

In surveys over the past 40 years, the share of Americans who say that most people can be trusted has fallen to 33 percent from about 50 percent. The erosion of trust coincides with widening disparities in incomes. Continue reading “The Economics of Trust” »

By IMFBlog| May 10th, 2017|Advanced Economies, capital flows, capital markets, Economic research, Europe, inclusive growth, Inequality, jobs, labor markets, Politics, U.S., wages|0 Comments

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