Ending Harassment Helps #TheEconomyToo

By Christine Lagarde, Corinne Deléchat, and Monique Newiak

March 5, 2018

Versions in عربي (Arabic),  中文 (Chinese), Español (Spanish), Français (French), 日本語 (Japanese), Português (Portuguese)

Women who live in countries with stronger protection against harassment, including at work, are more likely to open a bank account, borrow and save, and use financial services such as mobile payments (iStock by Getty Images).

This International Women’s Day is bringing new calls to #pressforprogress on gender parity. Giving women and girls the opportunity to succeed is not only the right thing to do—it can also transform societies and economies.

Unlocking this transformative potential means pushing for more equal opportunities: for example, equality in legal rights for men and women, and equality in access to education, health, and finance. Just as important is the fundamental issue of ensuring a safe environment for all, including protection against harassment. Continue reading “Ending Harassment Helps #TheEconomyToo” »

The Struggle to Manage Debt

By Christoph Rosenberg

March 1, 2018

Good economic times offer an opportunity to tackle budget deficits

The global economy has a spring in its step. Growth is picking up, and we at the IMF have been ratcheting up our forecasts. Government coffers are filling and, with more people at work, demand for public social support is receding. The fiscal woes of the past decade seem behind us.

But this sunny perspective ignores debt levels that remain close to historic highs and the inevitable end of the cyclical upswing. Estimates of underlying growth potential have hardly budged, and interest rates—the cost of servicing all this debt—are starting to rise, which will eventually make it harder to refinance bonds and loans. Continue reading “The Struggle to Manage Debt” »

A Digital-Savvy Indonesia

By Tidiane Kinda and Ting Yan

February 22, 2018

Version in  中文 (Chinese), baˈhasa indoneˈsia (Indonesian)

A salesperson shows a customer the latest smartphones in a showroom in Jakarta, Indonesia: the use of mobile internet services continues to grow rapidly in the country (photo: Beawhiharta/Reuters/ /Newscom).

With the third largest youth population in the world and 130 million active social media users, Indonesia is poised to become the biggest digital economy country in Southeast Asia. To fully embrace the digital opportunity, Indonesia must enhance its infrastructure and increase internet penetration to lift economic growth and productivity.

According to a McKinsey report, digitization could expand Indonesia’s economy by 10 percent of GDP and add 3.7 million jobs by 2025. Continue reading “A Digital-Savvy Indonesia” »

Sub-Saharan Africa: Diversifying for Tomorrow

By IMFBlog

February 16, 2018

Photo: iStock by Getty Images/subman

Countries in sub-Saharan Africa need to diversify their economies, and the region’s youth need to be at the heart of it, says Axel Schimmelpfennig.

Schimmelpfennig is head of the IMF team for Uganda, and a coauthor of a study that looks at the potential benefits of a stepped-up diversification agenda in sub-Saharan Africa.

In this podcast, Schimmelpfennig talks about the need for sub-Saharan Africa to increase productivity in areas like agriculture and manufacturing to become more competitive in the export market and allow for increasing wages. Continue reading “Sub-Saharan Africa: Diversifying for Tomorrow” »

Game-Changers and Whistle-Blowers: Taxing Wealth

By James Brumby and Michael Keen

February 13, 2018

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

New Delhi, India: there are now very few effective explicit wealth taxes in either developing or advanced economies (photo: Jens Kalaene/Corbis).

High and rising income inequality is a serious concern in many countries, as highlighted in the IMF’s recent Fiscal Monitor. Wealth, however, is distributed even more unequally than income, as in the picture below. Continue reading “Game-Changers and Whistle-Blowers: Taxing Wealth” »

Chart of the Week: Crime, Joblessness, and Youth in the Caribbean

By IMFBlog

February 12, 2018

Weak growth in the Caribbean reduces economic opportunities for young people, increasing their vulnerability to illegal activities and crime (photo: IMF)

Youth unemployment in the Caribbean—among the highest in the world—and crime are key bottlenecks to growth in the region.

In our Chart of the Week, we show that the 2008 global financial crisis had an especially strong effect on the unemployment rate for those between the ages of 15 and 24, which jumped on average by 5 percentage points between 2007 and 2013—from 21 percent to 26 percent. In some countries (for example, the Bahamas, Barbados, and Jamaica), youth unemployment rates are nearly three times that of those aged 30 and over. Continue reading “Chart of the Week: Crime, Joblessness, and Youth in the Caribbean” »

The Buzz of Populism and Its Pull on the Economy

By IMFBlog

February 9, 2018

(photo: Berkeley Review)

If you believe the economy can explain the rise of populism, political scientist Cristóbal Rovira Kaltwasser says it’s a bit more complicated than that.

“If you think about populist radical right parties in Western Europe, the party that gets the most votes is in Switzerland. And the economy in Switzerland is running perfectly!”

Populism has become a bit of a buzz word of late, and it was the subject of a seminar at the 2018 American Economic Association’s Annual Meeting. The IMF’s Antonio Spilimbergo organized the panel, which included Kaltwasser and economic stalwarts Dani Rodrik and Raghuram Rajan. Continue reading “The Buzz of Populism and Its Pull on the Economy” »

Chart of the Week: Inequality, Your Health, and Fiscal Policy

By Mercedes García-EscribanoBaoping Shang, and Emmanouil (Manos) Kitsios

February 5, 2018 

 Catania Sicily, Italy.  Men with a lower level of education live shorter lives, on average, than their better educated fellow citizens (photo: Jann Huizenga/Getty Images/IStock).

The gap in life expectancy between rich and poor people is a worldwide phenomenon, and has grown dramatically in recent years in some countries. 

In our Chart of the Week, we show how this longevity gap, which reflects inequality in access to health care and its impact on peoples’ overall health, varies across countries. Men with a lower level of education live shorter lives, on average, than their better educated fellow citizens: this gap ranges from four years in Italy, to 14 years in Hungary, according to the October 2017 Fiscal Monitor. Continue reading “Chart of the Week: Inequality, Your Health, and Fiscal Policy” »

South Africa’s Lesetja Kganyago: Fintech Is a Central Banker’s Friend

By IMFBlog

January 26, 2018 

Lesetja Kganyago, South Africa’s Central Bank Governor and Chairman of the International Monetary and Financial Committee (photo: IMF staff).

While central bankers are often seen as somewhat traditionalist, South Africa’s Reserve Bank Governor Lesetja Kganyago is breaking that mold. Kganyago sees how new technology—or fintech—is transforming the financial sector, and in this podcast, he says there is no turning back. Continue reading “South Africa’s Lesetja Kganyago: Fintech Is a Central Banker’s Friend” »

A Dream Deferred: Inequality and Poverty Across Generations in Europe

By Christine Lagarde

January 24, 2018

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

A young apprentice learns a trade in Palmela, Portugal: the right policies can help reduce inequality and poverty across generations in Europe (photo: Tim Brakemeier/DPA/Newscom).

The poet Langston Hughes once asked, “What happens to a dream deferred?” It is a relevant question to millions around the world today, especially young people, because of inequality and poverty.

This week IMF staff are launching new, European Union-focused research highlighting the impact of unemployment and the long-term consequences of inadequate social protection on the young. The study also explores ideas that can help fix the problem and reduce inequality and poverty for the next generation. Continue reading “A Dream Deferred: Inequality and Poverty Across Generations in Europe” »

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