Politics | IMF Blog

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

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

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

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

Chart of the Week: Conflict’s Legacy for Growth

By IMFBlog

Versions in عربي (Arabic)

May 8, 2017

Conflict has been on the rise since the early 2000s given the wars in Afghanistan, Iraq, and Syria.

Conflict leads not only to immeasurable human costs, but also to substantial economic losses with consequences that can persist for years. The tragic rise in conflict has weighed on global GDP growth in recent years, given the increasing number of countries experiencing strife, the severe effect on economic activity, and the considerable size of some of the affected economies.

The IMF’s most recent World Economic Outlook (Box 1.1) takes a closer look through the lens of conflict’s impact on economic growth and migration. Continue reading “Chart of the Week: Conflict’s Legacy for Growth” »

By IMFBlog| May 8th, 2017|corruption, developing countries, Economic Crisis, Economic outlook, Economic research, education, Employment, Government, Inequality, International Monetary Fund, Investment, jobs, labor force, labor markets, Middle East, Migration, Politics, productivity, refugees|0 Comments

Global Economy Gaining Momentum—For Now

By Maurice Obstfeld

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

Momentum in the global economy has been building since the middle of last year, allowing us to reaffirm our earlier forecasts of higher global growth this year and next. We project the world economy to grow at a pace of 3.5 percent in 2017, up from 3.1 percent last year, and 3.6 percent in 2018. Acceleration will be broad based across advanced, emerging, and low-income economies, building on gains we have seen in both manufacturing and trade.

Our new projection for 2017 in the April World Economic Outlook is marginally higher than what we expected in our last update. This improvement comes primarily from good economic news for Europe and Asia, as well as our continuing expectation for higher growth this year in the United States.

Continue reading “Global Economy Gaining Momentum—For Now” »

By IMFBlog| April 18th, 2017|Advanced Economies, capital markets, Economic outlook, Economic research, Emerging Markets, Employment, Fiscal policy, Globalization, growth, inclusive growth, income, Inequality, labor markets, Low-income countries, Politics, productivity, Uncategorized|0 Comments

Migration: A Global Issue in Need of a Global Solution

By Christine Lagarde

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

As the Group of Twenty leaders gather in Turkey this weekend, they will have on their minds heartbreaking images of displaced people fleeing countries gripped by armed conflict and economic distress. The surge of refugees in the last few years has reached levels not seen in decades. And these numbers could increase further in the near future.

The immediate priority must be to help the refugees—who bear the heaviest burden, and too often tragically—with better access to shelter, health care and quality education.

Many of the countries neighboring conflict zones—which have welcomed most of the refugees—have stretched their capacity to absorb people to the limit. To support additional public services for refugees, they will require more financial resources. The international community must play its part. With the IMF’s support, for example, Jordan has been able to adjust its fiscal targets to help meet this need.

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By IMFBlog| November 11th, 2015|Advanced Economies, Africa, Asia, Economic Crisis, Economic outlook, Emerging Markets, Europe, Fiscal policy, G-20, Global Governance, Globalization, IMF, Inequality, International Monetary Fund, Middle East, Politics|0 Comments

Corruption: A Hidden Tax on Growth

By Vitor Gaspar and Sean Hagan

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

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.

Continue reading “Corruption: A Hidden Tax on Growth” »

By IMFBlog| November 5th, 2015|Annual Meetings, Economic outlook, Economic research, Emerging Markets, Financial regulation, Global Governance, Globalization, Government, IMF, International Monetary Fund, Latin America, Middle East, Politics, Reform|0 Comments

Greece: Past Critiques and the Path Forward

By Olivier Blanchard

(Versions in Deutsch, Español, Français, Italiano, ελληνικά, Русский, 中文, 日本語, عربي, and Português)

All eyes are on Greece, as the parties involved continue to strive for a lasting deal, spurring vigorous debate and some sharp criticisms, including of the IMF.

In this context, I thought some reflections on the main critiques could help clarify some key points of contention as well as shine a light on a possible way forward.

The main critiques, as I see them, fall under the following four categories:

The 2010 program only served to raise debt and demanded excessive fiscal adjustment.
The financing to Greece was used to repay foreign banks.
Growth-killing structural reforms, together with fiscal austerity, have led to an economic depression.
Creditors have learned nothing and keep repeating the same mistakes.

Continue reading “Greece: Past Critiques and the Path Forward” »

By IMFBlog| July 9th, 2015|Advanced Economies, Debt Relief, Economic Crisis, Economic outlook, Employment, Europe, Financial Crisis, Fiscal policy, growth, IMF, International Monetary Fund, Politics, Public debt|0 Comments

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