5 Things You Need to Know About Inequality

By IMFBlog

January 23, 2018

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

A man with donations from a food bank in Los Angeles, California: inequality within countries is on the rise, including in advanced economies like the United States (photo: Lucy Nicholson/Newscom).

Tackling inequality is not only a moral imperative. It is critical for sustaining growth.

Global income inequality has declined in recent years, with the Gini index—a statistical measure of income distribution with a value of zero indicating perfect equality—dropping from 68 in 1988 to 62 in 2013, reflecting relatively strong growth in many emerging and developing economies, particularly in China and India. However, inequality has increased within many countries, including in many advanced economies. Continue reading “5 Things You Need to Know About Inequality” »

The Current Economic Sweet Spot Is Not the “New Normal”

By Maurice Obstfeld

January 22, 2018

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

Global growth continues to pick up and is broad based. But no matter how tempting it is to sit back and enjoy the sunshine, policy can and should move to strengthen the recovery (photo: Mumbai, India, Ingram Publishing/Newscom).

As the year 2018 begins, the world economy is gathering speed. The new World Economic Outlook Update revises our forecast for the world economy’s growth in both 2018 and 2019 to 3.9 percent. For both years, that is 0.2 percentage points higher than last October’s forecast, and 0.2 percentage points higher than our current estimate of last year’s global growth. Continue reading “The Current Economic Sweet Spot Is Not the “New Normal”” »

Economic Growth and Fairness in the Middle East and North Africa

By Jihad Azour

January 18, 2018

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

The people of the region are rightly demanding economic growth and fairness.  The IMF aims to help them in this effort (photo: Tunis, Tunisia, ZOUBEIR SOUISSI/REUTERS/Newscom).

Rising social tensions and protests in several countries across the Middle East and North Africa are a clear indication that the aspirations of the people of the region—for opportunity, prosperity and equity—remain unfulfilled. Their frustration is understandable, and precisely because of that, it would be a mistake if the economic reform process currently underway were to be thrown into reverse. Continue reading “Economic Growth and Fairness in the Middle East and North Africa” »

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” »

Gamechanger: The Digital Payment Boom in India

By IMFBlog

January 5, 2018

Madhur Deora, CFO of PayTM: Mobile payment platforms in India are providing small loans to people who’ve never had access to credit (IMF photo).

What does a shoe shiner in India have in common with central bankers and finance ministers? They both can appreciate the digital-payment boom. It’s sweeping the world but has accelerated in India, where last November the government demonetized—declaring that 86 percent of the country’s currency in circulation would cease to be legal tender. Continue reading “Gamechanger: The Digital Payment Boom in India” »

Staying Ahead of the Next Crisis: Improving Collaboration with Regional Financing Arrangements

By Petya Koeva Brooks, Pragyan Deb, and Nathan Porter

December 21, 2017

Version in 中文 (Chinese), 日本語 (Japanese)

Festival of lights in Chiang Mai, Thailand: Regional financing arrangements, such as the Chiang Mai Initiative, are playing a growing role in crisis prevention (photo: Tejas Tamobhid PATNAIK/newzulu/Newscom)

A decade ago, regional financing arrangements played a limited role in the global financial safety net. However, the global financial crisis has drastically changed the landscape. Governments have created new arrangements—such as the European Stability Mechanism and the Chiang Mai Initiative Multilateralization—and the resources in the global financial safety net tripled between 2007 and 2016. Because of this evolution, and since the time to repair the roof is when the sun is shining, effective and efficient collaboration between the IMF and regional arrangements has become critical to preventing and mitigating crises in many parts of the world. Continue reading “Staying Ahead of the Next Crisis: Improving Collaboration with Regional Financing Arrangements” »

Strength in Numbers: A Safety Net to Prevent Crises in the Global Economy

By IMFBlog

December 19, 2017

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

Walking on a safety net: countries need insurance in bad economic and financial times (photo: Vivek Prakash/Newscom).

If you are lucky, when the going gets tough, you have a group of people you can rely on to help you through a crisis. Countries are no different—a safety net to help them in bad economic and financial times can make the difference in peoples’ lives.   Continue reading “Strength in Numbers: A Safety Net to Prevent Crises in the Global Economy” »

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” »

Improving Financial Stability in China

By Ratna Sahay and James P. Walsh

December 6, 2017

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

A man walks past a bank branch in Beijing: China’s leaders have made financial stability one of their top priorities (photo: Stephen Shaver/UPI/Newscom).

China’s leaders have made financial stability one of their top priorities. Given the size and importance of the Chinese market, with the world’s largest banks and second-largest stock market, that is welcome news for China and the world. The financial system permeates virtually all aspects of economic activity, having played a key role in facilitating rapid economic growth and in sharply reducing poverty rates.

China is moving from the world’s factory floor toward  a more modern, consumer-driven economy. During this transition, however, some tensions have emerged in the financial sector. Continue reading “Improving Financial Stability in China” »

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

By Vitor Gaspar and Abebe Aemro Selassie

December 5, 2017

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

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” »

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