scholarly journals Somalia

2020 ◽  
Vol 20 (85) ◽  
Author(s):  
Keyword(s):  
National Development ◽  
Business Environment ◽  
Inclusive Growth ◽  
Poor Countries ◽  
Political Risks ◽  
Heavily Indebted Poor Countries ◽  
Capacity Improvement ◽  
Climate Shocks ◽  
Human Displacement ◽  
Agricultural Loss

This paper discusses Somalia’s Second Review Under the Staff-Monitored Program and Request for Three-Year Arrangements Under the Extended Credit and the Extended Fund Facility. The three-year financing package will support the implementation of the authorities’ National Development Plan and anchor reforms between the heavily indebted poor countries Decision and Completion Points. Reforms will focus on a continued strengthening of public finances to meet Somalia’s development needs in a sustainable manner; a deepening of central bank capacity; improvement of the business environment and governance; and enhancing statistics. Risks to the program and outlook remain elevated, although there is also upside potential. The immediate political risks concern the upcoming elections, while frequent climate shocks continue to contribute to agricultural loss and human displacement. On the upside, greater-than-expected impact from reforms under the program and additional development financing, together with the development of new industries, could lead to higher and more inclusive growth than the baseline.

scholarly journals Somalia

2020 ◽  
Vol 20 (87) ◽  
Author(s):  
Keyword(s):  
Poverty Reduction ◽  
National Development ◽  
National Elections ◽  
Poor Countries ◽  
Country Ownership ◽  
Heavily Indebted Poor Countries ◽  
Policy Objectives ◽  
Poverty Reduction Strategy Paper ◽  
Poverty Reduction Strategy ◽  
The Imf

This Joint Staff Advisory Note on the Poverty Reduction Strategy Paper discusses that Somalia has made noteworthy progress since 2012 to recover from decades of conflict and state fragmentation. The country has succeeded in rebuilding core state capabilities and organized two democratic national elections in 2012 and 2017. Somalia has now reached the stage where it seeks to fully reengage the international community and is requesting debt relief through the heavily indebted poor countries initiative. The authorities developed the Ninth National Development Plan (NPD9) through a highly consultative, participatory process that ensured full country ownership. The macroeconomic policy objectives of NDP9 are to promote economic growth in an environment of low inflation, sustainable fiscal and current account balances, and healthy foreign exchange reserves. The IMF staff recommends updating framework to incorporate greater support for poverty reduction and additional financing from development partners during the interim period. The IMF staff supports the authorities’ commitment to issuing new Somali shilling banknotes, while maintaining de facto dollarization.

Structural Transformation and Inclusive Growth

2018 ◽  
Author(s):  
Andy Sumner
Keyword(s):  
Structural Transformation ◽  
Global Economy ◽  
Focal Point ◽  
Import Substitution ◽  
National Development ◽  
Inclusive Growth ◽  
1960S And 1970S ◽  
The 1960S ◽  
The One ◽  
Import Substitution Industrialization

This chapter reviews currents in theory with a focus on modernization and neoclassical statements of comparative advantage on the one hand, and structuralism, dependency, and other theories of underdevelopment on the other. The latter theories of underdevelopment hit their zenith in the policies of the import-substitution industrialization of the 1960s and 1970s. They were largely dismissed in the 1980s as the limits of import-substitution industrialization became apparent and as East Asia industrialized, undermining any argument that structural transformation was problematic in the periphery. This chapter theorizes that neither orthodox nor heterodox theories of structural transformation adequately explain the development of late developers because of the heterogeneity of contemporary capitalism. That said, heterodox theories, which coalesce around the nature of incorporation of developing countries into the global economy, do retain conceptual usefulness in their focal point, ‘developmentalism’, by which we mean the deliberate attempts at national development led by the state.

Welfare implications of external debt and capital flight in Sub-Saharan Africa (Evidence using panel data modelling)

2021 ◽  
Vol 71 (2) ◽  
pp. 347-367
Author(s):  
Isaac Kwesi Ampah ◽  
Gábor Dávid Kiss
Keyword(s):  
External Debt ◽  
Estimation Method ◽  
Sub Saharan Africa ◽  
Capital Flight ◽  
Poor Countries ◽  
The People ◽  
General Welfare ◽  
Heavily Indebted Poor Countries ◽  
Sub Saharan ◽  
External Borrowing

AbstractThe countries in Sub-Saharan Africa (SSA) have experienced a positive growth rate of over five per cent per year, on average, since their transition from the Heavily Indebted Poor Countries Initiative in 1996 and the Multilateral Debt Relief Initiative in 2006. Despite this growth, poverty and inequality are still very high. Employing the Driscoll – Kraay standard panel estimation method and dataset from 1990 to 2015, this paper sets out to examine the implications of external debt and capital flight on the general welfare of the people. The estimation results reveal that both external debt and capital flight have a welfare inhibiting effect, suggesting that increases in external borrowing or capital flight may lead to a reduction in the welfare of the people in the sub-region. The study, therefore, recommends to policymakers and government in the sub-region the need to tackle the revolving nature of external borrowing and capital flight and take steps to halt all channels through which deservingly acquired capital leaves the sub-region.

scholarly journals The Impact of Government Debt on the Economic Growth of Ghana: A Time Series Analysis from 1990-2015

2015 ◽  
Vol 2 (5) ◽  
pp. 31-39 ◽  
Author(s):  
Lucy Anning ◽  
Collins Frimpong Ofori ◽  
Ernest Kwame Affum
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Negative Relationship ◽  
Secondary Data ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Poor Countries ◽  
High Dependency ◽  
Heavily Indebted Poor Countries ◽  
The Impact

In this study we investigate the impact of government debt on the economic growth of Ghana adopting the methodology of the simple Ordinary Least Squares with data spanning from 1990 to 2015. Ghana has unfortunately found itself in the tragic situation of high external government debt which has led to high dependency on aid and other loans to support its development. These aids and loans have seen the debt of Ghana rise steadily over the years. As a result of the Heavily-Indebted Poor Countries (HIPC) which was presented by the IMF and World Bank in 1999, Ghana was judged to be a HIPC with unsustainable debt enabling the country to benefit from debt relief. We investigate the impact of government debt (both external and domestic) by testing three related models at the domestic and external levels including the general growth of the Ghanaian economy. In constructing our dataset, we build on the study of many scholars including a substantial amount of new materials from both primary and secondary data sources being Ministry of Finance (MOF) or Treasury Latest actual data: Government Finance Statistics Manual (GFSM), Ghana and World Bank. The research findings revealed that there is a negative relationship between debt (domestic and external) and growth in the economy of Ghana and recommend among others that government debt borrowing should be discouraged while increasing the revenue base through tax reform programs is encouraged.

scholarly journals Somalia

2020 ◽  
Vol 20 (86) ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Net Present Value ◽  
Debt Relief ◽  
Debt Management ◽  
Policy Framework ◽  
Low Income Countries ◽  
Debt Sustainability ◽  
Poor Countries ◽  
Heavily Indebted Poor Countries ◽  
Hipc Initiative

This paper presents an assessment of Somalia’s eligibility for assistance under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The macroeconomic framework reflects the policy framework underlying the proposed three-year Fund-supported program. The debt relief analysis (DRA) remains largely unchanged, but some of the underlying debt data has been updated to reflect new information from creditors. In addition, this paper presents an assessment of debt management capacity in Somalia and a full Debt Sustainability Analysis under the Debt Sustainability Framework for Low-Income Countries. The DRA reveals that, after traditional debt relief mechanisms are applied, Somalia’s debt burden expressed as the net present value of debt-to-exports ratio is 344.2 percent at the end of December 2018—significantly above the HIPC Initiative threshold. Despite the challenging environment, progress on reform and policy implementation has been good and sustained reforms have translated into economic results. In addition to the coordinated support from the World Bank and the IMF, reforms have been supported by other development partners.

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