More developing countries will face debt distress

2020 ◽  
Keyword(s):  
Low Income ◽  
Foreign Currency ◽  
Global Financial Crisis ◽  
Health Impact ◽  
Low Income Countries ◽  
Content Type ◽  
Fiscal Constraints ◽  
Debt Burden ◽  
Foreign Currency Debt ◽  
Paris Club

Subject EMDC debt distress. Significance COVID-19 has triggered a global economic crisis, surpassing the declines caused by the 2008-09 global financial crisis. Massive fiscal packages have been launched to mitigate the health impact and economic disruption, pushing government debt sharply higher worldwide. The debt burden is particularly onerous in many emerging markets (EM) and low-income countries (LIC). The reckoning will come when the pandemic subsides and investors scrutinise the debt sustainability of different countries. Impacts Currency weakness will raise foreign currency debt repayment costs while lower GDP will erode tax income, squeezing budgets in EMDCs. Weak healthcare and fiscal constraints will make indirect COVID-19 impacts harsher than direct effects for many EMDCs. EMDCs owe large sums to private creditors and non-Paris Club states such as China; these actors' approach is key to coordinated debt relief.

Public Debt Vulnerabilities in Low-Income Countries - The Evolving Landscape

Policy Papers ◽  
2015 ◽  
Vol 15 (59) ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Public Debt ◽  
Global Financial Crisis ◽  
Low Income Countries ◽  
International Capital ◽  
International Capital Markets ◽  
Underlying Causes ◽  
The Global Financial Crisis ◽  
Sustainability Framework ◽  
Paris Club

This is the first joint IMF/World Bank report on public debt vulnerabilities in low income countries (LICs). It examines debt-related developments and their underlying causes since the onset of the global financial crisis. The findings will inform the upcoming review of the IMF/WB debt sustainability framework for LICs. Over this period, improved macroeconomic performance in LICs, combined with HIPC/MDRI debt relief and high demand for commodities, contributed to improved LIC creditworthiness. At the same time, new borrowing opportunities emerged as a result of the accommodative liquidity conditions in international capital markets, the deepening of domestic financial markets for some LICs, and the growing lending activities of non-Paris Club countries. These new financing possibilities helped mitigate the decline in Paris Club lending to LICs and have been associated with a shift toward greater reliance on non-concessional credit. The changing financing landscape has been most significant for frontier LICs.

Foreign capital inflows and economic growth: the experience of low-income countries in Sub Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Awad
Keyword(s):  
Low Income ◽  
Foreign Capital ◽  
Ordinary Least Squares ◽  
Capital Inflows ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Content Type ◽  
Long Run ◽  
Foreign Capital Inflows ◽  
The Impact

Purpose This paper aims to investigate the long-run impact of selected foreign capital inflows, including aid, remittances, foreign direct investment (FDI), trade and debt, on the economic growth of 21 low-income countries in the Sub Saharan Africa (SSA) region, during the period 1990–2018. Design/methodology/approach To obtain this objective and for robust analysis, a parametric approach, which was dynamic ordinary least squares, and a non-parametric technique, which was fully modified ordinary least squares, were used. Findings The results of both models confirmed that, in the long run, trade and aid affected the growth rate of the per capita income in these countries in a positive way. However, external debt seemed to have an adverse influence on such growth. Originality/value First, this is the initial study that has addressed this matter across a homogenous group of countries in the SSA region. Second, while most of the previous studies regarding capital inflows into the SSA region have focused on the impact of only one or two aspects of such foreign capital inflows on growth, the present study, instead, examined the impact of five types of foreign capital inflows (aid, remittances, FDI, trade and debt).

Private school vouchers for expanding secondary school access? The case of Tanzania

2018 ◽  
Vol 32 (7) ◽  
pp. 1307-1318
Author(s):  
Donald R. Baum ◽  
Jacobus Cilliers
Keyword(s):  
Secondary Education ◽  
Secondary School ◽  
Low Income ◽  
Private School ◽  
Systems Approach ◽  
Financial Burden ◽  
Low Income Countries ◽  
Urban District ◽  
Content Type ◽  
School Voucher

Purpose The purpose of this paper is to provide insight into the current contributions of private schools to education provision in Tanzania, and to consider the feasibility of a school voucher program to contribute to the expansion of the secondary school system, compared to the alternative expansion of public secondary education. Design/methodology/approach The study offers an analysis of current educational circumstances and educational goals in Tanzania, and projects differential costs and outcomes associated with various options for expanding secondary education. Data come from two sources: a census of the private schooling market in the Morogoro Urban district, conducted as part of the World Bank’s Systems Approach for Better Education Results initiative; and Tanzania’s National Panel Survey 2010–2011. Findings For those students unable to cover the full cost of secondary education, findings suggest that a targeted private school voucher would be an efficient and equitable policy mechanism for secondary school expansion. Such an approach would ease the financial burden on government for constructing all new schools, yet assure access for the most vulnerable. Originality/value The implementation of school voucher programs is increasing in low-income countries. It is important for policy makers to carefully consider the appropriateness of this type of policy intervention for their particular educational contexts. This paper models an approach by which researchers and policymakers can assess the educational circumstances of a particular location, and determine the potential effectiveness of a private school voucher policy.

Cross-cultural metacognition as a prior for humanitarian knowledge: when cultures collide in global health emergencies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tachia Chin ◽  
Jianwei Meng ◽  
Shouyang Wang ◽  
Yi Shi ◽  
Jianxin Zhang
Keyword(s):  
Low Income ◽  
A Priori ◽  
Normative Theory ◽  
Cross Cultural ◽  
Warning Signs ◽  
Low Income Countries ◽  
Global Public Health ◽  
Business World ◽  
Content Type ◽  
Cultural Conflicts

Purpose A serious global public health emergency (GPHE) like the COVID-19 aggravates the inequilibrium of medical care and other critical resources between wealthy and poor nations, which, coupled with the collision of cultures, indicates the vital need for developing humanitarian knowledge transcending cultures. Given the scarcity of literature addressing such unprecedent issues, this paper thus proposes new, unconventional viewpoints and future themes at the intersection of knowledge management (KM) and humanitarian inquiry. Design/methodology/approach This paper is conceptual in nature. The data of the World Bank and the Office for the Coordination of Humanitarian Affairs are analysed to introduce some emerging real impact topics regarding cross-cultural conflicts and humanitarian knowledge in the post-COVID business world. The theoretical foundation was built upon a critical literature review. Findings This paper synthesizes the perspectives of culture, KM and the humanistic philosophy to distil the core component of cultural intelligence and comparatively and thereby illuminating why cross-cultural metacognition acts as a priori for achieving cosmopolitan humanitarian knowledge. Research limitations/implications This paper provides profound implications to academics by highlighting the importance to formulating new, inter-disciplinary themes or unorthodox, phenomenon-driven assumptions beyond the traditional KM domain. This paper also offers practitioners and policymakers valuable insights into coping with the growing disparity between high- and low-income countries by showing warning signs of a looming humanitarian crisis associated with a GPHE context. Originality/value This paper does not aim to claim the birth of a new domain but call for more research on developing a normative theory of humanitarian knowledge as transcendence of cultures. It implies uncharted territories of great interest and potential for the real impact KM community.

scholarly journals Global e-government development: besides the relative wealth of countries, do policies matter?

2020 ◽  
Vol 14 (3) ◽  
pp. 381-400 ◽  
Author(s):  
Gonçalo Paiva Dias
Keyword(s):  
Low Income ◽  
Public Policies ◽  
Low Income Countries ◽  
Political Commitment ◽  
Content Type ◽  
Secondary Sources ◽  
Relative Wealth ◽  
Innovative Thinking ◽  
High Level ◽  
Government Development

Purpose This study aims to investigate whether, discounting the effect of the relative wealth of countries, it is possible to observe the relevance of policies for e-government development. Design/methodology/approach The deviations of countries' results from what could be expected, considering their relative wealth is calculated by using the residuals of a linear regression using the Gross Domestic Product per capita as the independent variable and the UN E-Government Development Index as the dependent variable. The countries that achieve better and worse results than expected are then identified and their cases are analyzed by resorting to secondary sources, namely, published research referring to their cases. Those research documents were identified by successively searching the Scopus database, the Google Scholar database and the Web of Science. Findings The existence of formal e-government strategies and plans and the capacity to implement them can make a difference, allowing countries to achieve better results than expected or, in their absence, to perform worse than expected. Research limitations/implications The proposed methodology can be useful to e-government researchers, particularly as a basis for deeper and more detailed studies. Practical implications Countries should invest in well-developed and focused strategies and continuity of public policies and their capacity to deliver results. For that purpose, political commitment and high-level coordination are key factors. For low-income countries, long-lasting cooperation with external experienced partners is crucial. For high-income countries, innovative thinking is a key enabler. Originality/value This study uses an innovative method to look beyond the effect of the relative wealth of countries and investigate the relevance of public policies for e-government development.

State fragility and human development: a study with special emphasis on social cohesion

2020 ◽  
Vol 48 (1) ◽  
pp. 39-61
Author(s):  
Belay Seyoum
Keyword(s):  
Human Development ◽  
Social Cohesion ◽  
Low Income ◽  
Ordinary Least Squares ◽  
Low Income Countries ◽  
Least Squares Regression ◽  
Content Type ◽  
State Fragility ◽  
State Legitimacy ◽  
The Impact

PurposeThe purpose of this paper is to examine the effect of state fragility on select indicators of human development and identify aspects of state fragility that have the greatest impact on poverty reduction and sustainable development. The paper also explores the impact of social cohesion on human development as well as the mediating role of state legitimacy in mediating the relationship between social cohesion and human development.Design/methodology/approachThe study is based on data from 180 countries and uses ordinary least squares regression and mediation analysis to explore the effects of social cohesion on human development.FindingsThe findings show a significant relationship between state fragility and human development. It suggests that policies and efforts aimed at enhancing social cohesion would have the most significant impact on human development. The findings also show that social cohesion not only has a direct effect on human development but it also has an indirect effect on human development through state legitimacy (mediator).Practical implicationsEven though state fragility has been largely associated with low income countries, different facets of fragility are manifested in various countries regardless of levels of economic development.Originality/valueThe study is timely in view of the evidence of increasing state fragility in many countries. Furthermore, this is the first scholarly work linking lack of social cohesion, state fragility and human development.

scholarly journals Solidarity and social behaviour: how did this help communities to manage COVID-19 pandemic?

2020 ◽  
Vol 40 (9/10) ◽  
pp. 1183-1200
Author(s):  
Paul Agu Igwe ◽  
Chinedu Ochinanwata ◽  
Nonso Ochinanwata ◽  
Jonathan Olufemi Adeyeye ◽  
Isaac Monday Ikpor ◽  
...  
Keyword(s):  
Low Income ◽  
Informal Economy ◽  
Sampling Procedure ◽  
Social Solidarity ◽  
Low Income Countries ◽  
Job Seekers ◽  
Content Type ◽  
Resource Pooling ◽  
Work From Home ◽  
Poor Households

PurposeDuring the coronavirus (COVID-19) pandemic lockdowns, stay at home or work from home, many have argued that the westernised non-pharmaceutical interventions (NPI) do not provide remedial in low-income countries like Nigeria, where informal job seekers, street traders, informal labourers and artisans depend mainly on the informal economy. By applying social solidarity (SS) and community-based approach (CBA), the authors evaluate individual acts (trust, altruism and reciprocity) during the lockdown and how these practices evolve from individual approaches to collective actions.Design/methodology/approachThis study reflects on pragmatism research paradigm that enables researchers to maintain both subjectivity in their reflections and objectivity in data collection and analysis. The authors adopt a qualitative method through purposeful and convenience sampling procedure. Data were analysed thematically to identify elements of SS, individual acts, collective or community actions and perceptions.FindingsThe findings reveal that COVID-19 had a disproportionate impact (lack of food and a fall in daily income) on workers, informal job seekers, informal businesses operators and the poor households. As such, the study developed a reflective model of solidarity exhibited by individual acts and collective acts (practices of resource pooling, information sharing, women empowerment, distribution of palliatives and donations) within trusted circles that helped people cope with the lockdown experiences.Practical implicationsSolidarity represents beliefs, practices of values and norms. The SS exhibited by people through NPI would have implications on planning and monitoring the effectiveness of public health programmes during a pandemic in the future.Social implicationsThe findings of citizens and community actions have implications related to the process of building communities – coming together – and solidarity that enhances social development with implications on community health policy agenda during disasters, emergencies and health pandemic.Originality/valueThis is one of the first studies to analyse the relationship between trust, altruism, reciprocity, SS and CBA during the COVID-19 pandemic. Also, it seems reasonable to clarify the concept of SS given the lack of clarity about the definitions from previous studies.

Guidance Note on the Fund’s Transparency Policy

Policy Papers ◽  
2010 ◽  
Vol 2010 (2) ◽  
Author(s):  
Keyword(s):  
Financial Crisis ◽  
Low Income ◽  
Public Debt ◽  
Global Financial Crisis ◽  
Low Income Countries ◽  
Debt Sustainability ◽  
Guidance Note ◽  
Fiscal Revenue ◽  
Near Term ◽  
The Global Financial Crisis

The global financial crisis has had a significant impact on low-income countries (LICs)’ debt vulnerabilities. Recent debt sustainability analyses (DSAs) indicate that external and fiscal financing requirements have increased. In addition, standard measures of a country’s capacity to repay debt?GDP, exports, and fiscal revenue?are expected to be permanently lower. On average, debt ratios are therefore expected to deteriorate in the near term, particularly for public debt.

A Review of Some Aspects of the Low-Income Country Debt Sustainability Framework

Policy Papers ◽  
2009 ◽  
Vol 09 ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Income Country ◽  
Low Income Countries ◽  
Preventive Action ◽  
Debt Sustainability ◽  
Low Income Country ◽  
Debt Burden ◽  
Development Goals ◽  
Lending Decisions ◽  
Sustainability Framework

The Bank-Fund Debt Sustainability Framework (DSF) is a standardized framework for analyzing debt-related vulnerabilities in low-income countries (LICs). It aims to help countries monitor their debt burden and take early preventive action, to provide guidance to creditors in ensuring their lending decisions are consistent with countries’ development goals, and to improve the Bank and Fund’s assessments and policy advice. The DSF was last reviewed in 2006, and a reconsideration of some aspects of the framework is timely.

Guidance Note for Fund Staff on the Treatment and Use of SDR Allocations

Policy Papers ◽  
2009 ◽  
Vol 09 ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Low Income ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Low Income Countries ◽  
Guidance Note ◽  
Special Drawing ◽  
The Global Financial Crisis ◽  
Special Drawing Rights

Against the backdrop of the global financial crisis, the IMF has decided to implement a US$250 billion general allocation of special drawing rights (SDRs). In addition, the Fourth Amendment of the Fund’s Articles of Agreement has recently become effective, and will make available to SDR Department participants a special allocation of up to an additional SDR 21.5 billion (US$33 billion). Nearly US$115 billion of these combined allocations will go to emerging market and developing countries, including about US$20 billion to low-income countries (LICs), thereby providing an important boost to the reserves of countries with the greatest needs.

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