Corruption: A Hidden Tax on Growth

By Vitor Gaspar and Sean Hagan

(Versions in Español عربي中文Français日本語, Русскийعربي)

In recent years, citizens’ concerns about allegations of corruption in the public sector have become more visible and widespread. From São Paulo to Johannesburg, citizens have taken to the streets against graft. In countries like Chile, Guatemala, India, Iraq, Malaysia and Ukraine, they are sending a clear and loud message to their leaders: Address corruption!

Policymakers are paying attention too. Discussing corruption has long been a sensitive topic at inter-governmental organizations like the International Monetary Fund. But earlier this month at its Annual Meetings in Lima, Peru, the IMF hosted a refreshingly frank discussion on the subject.  The panel session provided a stimulating debate on definitions of corruption, its direct and indirect consequences, and strategies for addressing it, including the role that individuals and institutions such as the IMF can play. This blog gives a flavor of the discussion.

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Seeking Fairness in the Middle East and North Africa: How Taxation Can Help

Pritha MitraBy Pritha Mitra

(Versions in Français and عربي)

Aspirations for greater fairness were at the core of the protests that triggered the Arab Spring almost five years ago—and remain largely unfulfilled today. In our new paper, we show that tax reform can go a long way towards meeting those aspirations.

Taxation is a critical interface between the state and citizens. How much revenue is raised, how the tax burden is distributed, and how taxation is implemented can all powerfully affect both the reality and the perception of economic opportunities—and the degree of trust in government.

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The Global Impact of Lower Oil Prices

by iMFdirect

Remember when oil was the big story? Yeah, us too.  And we're still thinking through the issues and what they mean for oil importers and exporters, as well as the global economy.

This week IMF economists released a new paper, and we interviewed the lead author in this podcast, that delves into the benefits of lower oil prices for consumers and for the global economy.

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Inequality’s Toll on Growth

by iMFdirect

Inequality is one of the defining issues of our time, so you may want to tune in to this interview with the authors of a new study that shows that  higher inequality leads to lower growth.  You can also read their blog here.

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Growth’s Secret Weapon: The Poor and the Middle Class

By Era Dabla-Norris, Kalpana Kochhar, and Evridiki Tsounta

(Versions in  Español中文 日本語عربي,and Русский)

The gap between the rich and the poor is at its widest in decades in advanced countries, and inequality is also rising in major emerging markets (Chart 1).  It is becoming increasingly clear that these developments have profound economic implications.

SPR Inequality SDN.chart 1rev

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Oil Prices and Public Finances: A Double-Edged Sword

By Benedict Clements and Marta Ruiz-Arranz 

(Versions in 中文, Français, 日本語Русскийعربي and Español)

Plunging oil prices have taken the public finances on an exciting ride the past six months. Oil prices have fallen about 45 percent since September (see April 2015 World Economic Outlook), putting a big dent in the revenues of oil exporters, while providing oil importers an unexpected windfall.  How has the decline in oil prices affected the public finances, and how should oil importers and exporters adjust to this new state of affairs?

In the April 2015 Fiscal Monitor, we argue that the oil price decline provides a golden opportunity to initiate serious energy subsidy and taxation reforms that would lock in savings, improve the public finances and boost long-term economic growth.

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Fair Play—Equal Laws for Equal Working Opportunity for Women

2014MDNEW_04By Christine Lagarde 

(Versions in 中文, Français, 日本語Русскийعربي and Español)

Leveling the legal playing field for women holds real promise for the world—in both human and economic terms. Unfortunately, that promise remains largely ignored and its potential untapped. In too many countries, too many legal restrictions conspire against women to be economically active—to work.

What can be done to remove these barriers?  A new study done by IMF economists seeks to answer that question.

The bottom line? It's about a fair, level playing field.

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How Can Egypt Achieve Economic Stability and Better Living Standards Together?

Chris JarvisBy Christopher Jarvis

(Version in عربي)

Egypt currently faces what may seem to be conflicting objectives. On the one hand, there’s an urgent need to restore economic stability—by achieving lower budget deficits, public debt and inflation, and adequate foreign exchange reserves. At the same time, there’s a long-standing need to achieve better standards of living—with more jobs, less poverty, and better health and education systems—one of the key reasons why people took to the streets in 2011.

Some might think that those two goals don’t go together—that the actions needed to reduce the budget and external deficits will necessarily take away from jobs and growth. But that’s not true. Some of the same policies that will improve Egypt’s financial situation can also help improve living standards.

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Learning to Live with Cheaper Oil in the Middle East

masood-ahmedBy Masood Ahmed

(Version in عربي)

The steep decline in global oil prices, by 55 percent since last September, has changed the economic dynamics of oil exporters in the Middle East and North Africa. Our update of the Regional Economic Outlook, released yesterday, shows that these countries are now faced with large export and government revenue losses, which are expected to reach about $300 billion (21 percent of GDP) in the Gulf Cooperation Council and about $90 billion (10 percent of GDP) in other oil-exporting countries.

Where prices will eventually settle is, of course, uncertain, making it hard for policymakers to gauge how much of the bane is temporary in nature and what share of it they should expect to last.

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The Top Ten Blogs of 2014

by iMFdirect

As 2014 draws to a close, we thought you might like a look back at the most read blogs of the year.  These are the headlines and ideas that caught your eyes and the list is based on readership.  We thought we’d pull them all together for you in one quick read.

Wishing you a wonky & worldy 2015 from all of us at iMFdirect.

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