scholarly journals Malawi

2020 ◽  
Vol 20 (288) ◽  
Author(s):  
Keyword(s):  
Presidential Elections ◽  
Balance Of Payments ◽  
External Financing ◽  
Government Budget ◽  
Exogenous Shock ◽  
Credit Facility ◽  
Budget Support ◽  
Financing Gap ◽  
The Government

Presidential elections in June 2020, a re-run of the canceled 2019 elections, resulted in a change of government, with President Chakwera securing 59 percent of the vote. The new administration is facing a rapid acceleration of COVID-19 cases in Malawi and adverse spillovers from continued deterioration of the global and regional economic situation, significantly worsening the macroeconomic outlook. Consequently, an additional urgent balance of payments need of 2.9 percent of GDP has arisen—bringing the total external financing gap in 2020 to 5.0 percent of GDP. The authorities have requested an additional disbursement of 52.1 percent of quota (SDR 72.31 million) under the “exogenous shock” window of the Rapid Credit Facility (RCF), where 30 percent of the disbursement would finance the government budget. This follows the May 1, 2020 Board approval of a 47.9 percent of quota RCF disbursement (without budget support). The authorities have cancelled the Extended Credit Facility (ECF) and expressed a strong interest in discussing a new ECF—better aligned with their new long-term growth and reform strategy—once conditions permit.

Long-Term Growth and Short-Term Policy

1964 ◽  
Vol 29 ◽  
pp. 26-38 ◽  
Author(s):  
W. A. H. Godley ◽  
J. R. Shepherd
Keyword(s):  
Economic Policy ◽  
Balance Of Payments ◽  
The Other ◽  
High Wage ◽  
Short Term ◽  
High Unemployment ◽  
The Government ◽  
Wage Increases

One of the main aims of short-term economic policy in Britain has been to regulate the pressure of demand for labour, and to keep the fluctuations of the unemployment percentage within fairly narrow limits. High unemployment is obviously undesirable; at the other end of the scale, if the pressure of demand for labour is too strong, this tends to lead to excessively high wage increases and to balance of payments difficulties. It is for the Government to decide at what pressure it wishes to run the economy, and to try to keep it there.

Sri Lanka in 2019

Asian Survey ◽  
2020 ◽  
Vol 60 (1) ◽  
pp. 207-212
Author(s):  
Bart Klem
Keyword(s):  
Sri Lanka ◽  
Presidential Elections ◽  
Government Budget ◽  
The Government

Sri Lanka was confronted with three interrelated crises in 2019: the unresolved gridlock of last year’s constitutional crisis; the Easter bombings and their turbulent aftermath; and the coming to a head of fiscal shortfalls and debt burdens. Growth is stalling, living costs are rising, deficits are widening, and the price of Sri Lanka’s debt is weighing heavily on the government budget. In the presidential elections, Gotabaya Rajapaksa, heir of the Rajapaksa dynasty, prevailed with a landslide.

Guinea-Bissau elections may not end instability

2019 ◽  
Keyword(s):  
Political Parties ◽  
Presidential Elections ◽  
West African ◽  
Economic Community ◽  
Content Type ◽  
Guinea Bissau ◽  
Presidential System ◽  
The Government ◽  
Political Turmoil

Subject Outlook for presidential elections in Guinea-Bissau. Significance Controversial outgoing President Jose Mario Vaz is among twelve candidates vying for the presidency on November 24. While the Economic Community of West African States (ECOWAS)-backed elections are set to go ahead as planned, fears linger that they will not end recurring political turmoil. Impacts If Pereira wins, he will likely try drafting a new constitution to give greater clarity to the current ambiguous semi-presidential system. Ongoing political instability will exacerbate border insecurity and long-standing narco-trafficking. A more active, internationally backed civil society will ensure added scrutiny of political parties and the government over the long term.

scholarly journals The Effectiveness of Employment Vouchers: A Simple Approach

2000 ◽  
Vol 1 (4) ◽  
pp. 385-419 ◽  
Author(s):  
J. Michael Orszag ◽  
Dennis J. Snower
Keyword(s):  
Optimal Policy ◽  
Policy Design ◽  
Unemployment Benefits ◽  
Government Budget ◽  
Long Term Effects ◽  
Short Term ◽  
Wide Range ◽  
The Government ◽  
Hiring And Firing

Abstract This paper explores the optimal design of subsidies for hiring unemployed workers (`employment vouchers' for short) in the context of a simple dynamic model of the labour market. Focusing on the short-term and long-term effects of the vouchers on employment and unemployment, the analysis shows how the optimal policy depends on the rates of hiring and firing, and on the problems of displacement and deadweight. It also examines the roles of the government budget constraint and of the level of unemployment benefits in optimal policy design. We calibrate the model and evaluate the effectiveness of employment vouchers in reducing unemployment for a wide range of feasible parameters.

scholarly journals Kyrgyz Republic

2020 ◽  
Vol 20 (158) ◽  
Author(s):  
Keyword(s):  
Health Care ◽  
Balance Of Payments ◽  
Kyrgyz Republic ◽  
Exogenous Shock ◽  
Credit Facility ◽  
Contingency Plan

The outbreak of the COVID-19 pandemic has weakened the macroeconomic outlook. The authorities have launched a health care contingency plan and an initial package of economic measures, together totaling $31 million (0.4 percent of GDP), and are preparing a second, larger package of economic measures of about $400 million (5.2 percent of GDP). To help address an urgent balance of payments need arising from the pandemic, estimated at about $500 million, the authorities request an additional purchase under the Rapid Financing Instrument (RFI) of 33.3 percent of quota (SDR 59.2 million) and a disbursement under the Rapid Credit Facility (RCF) of 16.7 percent of quota (SDR 29.6 million) under the “exogenous shock” window of the RCF. This follows Board approval on March 26, 2020 of the authorities’ earlier request for the same amounts, before the doubling of the annual access on emergency financing under the “exogenous shock” window of the Rapid Credit Facility (RCF) to 100 percent of quota was approved on April 6, 2020. This additional request will bring the total purchases under the RFI and the disbursements under the RCF to 100 percent of quota in 2020.

External Financing, Gap Models of Growth, and the Macroeconomics of Relying on Foreign Resources

2020 ◽  
pp. 198-219
Author(s):  
Giovanni Andrea Cornia
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
Debt Crisis ◽  
Strong Dependence ◽  
Capital Inflows ◽  
External Financing ◽  
Foreign Loans ◽  
Financing Gap ◽  
Gap Models

Chapter 10 reviews the factors responsible for the strong dependence of developing countries on foreign capital and foreign aid, as well as the cyclical capital inflows and long-term development problems entailed by such a situation. It then discusses a family of models, some of which were developed after the debt crisis and recession of the 1980s and 1990s. These models aim to determine the amount of foreign loans and grants required to reach a preset rate of growth of GDP. It finally assesses the macroeconomic and growth impact of high dependence on foreign finance and foreign aid.

scholarly journals Union of Comoros

2019 ◽  
Vol 19 (272) ◽  
Author(s):  
Keyword(s):  
Tropical Cyclone ◽  
Balance Of Payments ◽  
Financial Assistance ◽  
Productive Capacity ◽  
External Financing ◽  
Building Stock ◽  
Exogenous Shock ◽  
Commercial Farming ◽  
Emergency Assistance ◽  
Catalytic Role

Tropical Cyclone Kenneth struck Comoros on April 23-24. The cyclone caused several casualties; displaced thousands; and damaged substantial parts of the building stock, infrastructure, and plants used in subsistence and commercial farming, thereby lowering productive capacity. Request for Fund support. Reflecting the large budgetary and external financing gaps arising from emergency assistance and reconstruction needs, the authorities are seeking financial assistance under the Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI) exogenous shock windows. Comoros’ qualification is based on urgent balance of payments needs following a severe natural disaster. In the attached letter, the authorities request a disbursement under the RCF and purchase under the RFI of a combined SDR 8.9 million, equivalent to 50 percent of quota, with the full amount to become available upon Board approval. Staff supports this request. IMF involvement in the international effort to assist Comoros will play also a catalytic role in securing grants from Comoros’ development partners.

scholarly journals Republic of Madagascar

2020 ◽  
Vol 20 (268) ◽  
Author(s):  
Keyword(s):  
Debt Service ◽  
Balance Of Payments ◽  
Global Environment ◽  
Exogenous Shock ◽  
Credit Facility ◽  
The Impact ◽  
Paris Club

A further deterioration of the global environment and a deepening of the impact of the COVID-19 pandemic have worsened the macroeconomic outlook significantly, with growth now projected to be negative in 2020. As a result, urgent balance of payments needs arising from the pandemic are now estimated at 4.2 percent of GDP (compared to 1.8 percent), and the authorities have requested an additional disbursement under the Rapid Credit Facility (RCF) of 50 percent of quota (SDR 122.2 million) under the “exogenous shock” window of the RCF. This follows Board approval on April 3, 2020 of the authorities’ request for 50 percent of quota, which took place before the annual access of the RCF was doubled to 100 percent of quota on April 6, 2020. This additional request, if approved, will bring total disbursements under the RCF to 100 percent of quota in 2020. The authorities have also requested temporary debt servicing relief under the G-20 Debt Service Suspension Initiative, supported by the G-20 and Paris Club.

scholarly journals Rwanda

2020 ◽  
Vol 20 (207) ◽  
Author(s):  
Keyword(s):  
Economic Impact ◽  
Balance Of Payments ◽  
Economic Recovery ◽  
Country Report ◽  
Exogenous Shock ◽  
Credit Facility ◽  
Set Up

As explained in IMF Country Report No. 20/115, COVID-19 has had a severe economic impact on Rwanda through the implementation of strict domestic measures to contain the spread of the virus and related global spillovers. The authorities have responded by deploying health and economic measures totaling USD 311 million (3.3 percent of GDP). They have also set up an economic recovery fund to support firms affected by the pandemic. To help address the urgent balance of payments (BOP) need arising from the pandemic, currently estimated at about USD 433 million, the authorities request an additional disbursement under the Rapid Credit Facility (RCF) of 50 percent of quota (SDR 80.1 million) under the “exogenous shock” window of the RCF. This follows the Executive Board’s approval on April 2, 2020 of the authorities’ earlier request for the same amount, before the doubling of the annual access limit of emergency financing under the “exogenous shock” window of the RCF to 100 percent of quota on April 9, 2020. This additional request will bring the total disbursement under the RCF to 100 percent of quota.

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