The Fruits of Growth: Economic Reforms and Lower Inequality


Lagarde.2015MDPORTRAIT4_114x128By Christine Lagarde

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

Growth is essential for improving the lives of people in low-income countries, and it should benefit all parts of society.

Traveling through Africa in the last few days, I have been amazed by the vitality I have witnessed: business startups investing in the future, new infrastructure under construction, and a growing middle class. Many Africans are now making a better living and fewer are suffering from poverty. My current host, Uganda, for example, has more than halved its absolute poverty rate to about 35 percent from close to 90 percent in 1990.

But we have also seen a flip side. Poverty, of course, but inequality as well remain stubbornly high in most developing countries, including in Africa, and too often success is not shared by all.  Continue reading

Inclusive Growth and the IMF


prakash-loungani-128x112-72By Prakash Loungani

Versions in 中文 (Chinese), Français (French), and Español (Spanish)

Four years ago, at the World Economic Forum in Davos, IMF Managing Director Christine Lagarde warned of the dangers of rising inequality, a topic that has now risen to the very top of the global policy agenda.

While the IMF’s work on inequality has attracted the most attention, it is one of several new areas into which the institution has branched out in recent years. A unifying framework for all this work can be summarized in two words: Inclusive growthContinue reading

Roads to Stronger Growth in Low-Income Countries


By Tao Zhang and Vladimir Klyuev

Versions in:  عربي (Arabic), 中文 (Chinese), Français (French), and Español (Spanish)

Low-income countries should build more infrastructure to strengthen growth. A new IMF analysis looks at ways to overcome obstacles.

The clock is now ticking on the 2030 Agenda for Sustainable Development, and while investment—critical to this agenda—has been rising in recent years among low-income countries, weak infrastructure is still hampering growth. Governments need to make significant improvements to lay foundations for flourishing economies: roads to connect people to markets, electricity to keep factories running, sanitation to stave off disease, and pipelines to deliver safe water. Continue reading

Big Bad Actors: A Global View of Debt


By Vitor Gaspar and Marialuz Moreno Badia

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

In the midst of the Great Depression, the American economist Irving Fisher warned of the dangers of excessive debt and the deflationary pressures that follow on its tail. He saw debt and deflation as the big, bad actors. Now, their close relatives—too high debt and too low inflation—are still in play, at least for advanced economies.

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Tackling Inequality in sub-Saharan Africa Could Yield Mileage on Growth


Antoinette Sayehby Antoinette Sayeh

(Versions in Français and Português)

Rising inequality is both a moral and economic issue that has implications for the general health of the global economy, and impacts prosperity and growth.

So it’s not surprising that reducing inequality is an integral part of the Sustainable Development Goals  adopted by world leaders at the United Nations summit in September. I often discuss with my colleagues where sub-Saharan Africa stands with respect to these objectives. Unfortunately, the region remains one of the most unequal in the world, on par with Latin America (see Chart 1). In fact, inequality seems markedly higher at all levels of income in the region than elsewhere (see Chart 2).

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Inclusive Growth=Stability


By iMFdirect

In the end, the case for job rich, inclusive growth is not economic, it’s political, according to Nobel prize-winning economist Michael Spence.

In this podcast with the IMF, Spence discusses the growing sense in many countries that it’s mostly the wealthy population who are reaping the benefits of economic development.

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Building the Future: Jobs, Growth, and Fairness in the Arab World



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By Christine Lagarde

(Version in عربي and Français)

Returning from Amman, where we just wrapped up a conference on the future of the Arab countries in transition, I am truly energized by the optimistic spirit that I encountered. Following on the heels of my visit to Morocco, it was an extraordinary couple of days of better understanding the people and the challenges they confront in this fascinating region.

Christine Lagarde, IMF Managing Director, speaks to Syrian refugee woman during visit to Syrian al-Za'atari refugee camp in Mafraq city

IMF Managing Director Christine Lagarde speaks to Syrian refugee women at al-Za’atari refugee camp in Mafraq, Jordan. Photo: Pool/Ali Jarekjiali Jarekji/AFP/Getty Images

I did not start my visit to Jordan in a conference room, but at the Za’atari refugee camp. It is now home—hopefully a temporary one—to over 100,000 Syrians who fled the bloody conflict in their country. I saw firsthand how these refugees cope under extraordinarily difficult circumstances—and how Jordan, the region, and the international
community are coming together. It is heartening to see how Jordanian hospitality and determined support from UN agencies and many other aid organizations are preventing a bad situation from becoming even worse. But more help is direly needed. We at the IMF are doing our own part, by flexibly supporting Jordan with a $2.1 billion loan. Continue reading

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