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Pakistan: Spending Needs for Reaching Sustainable Development Goals (SDGs)
This paper assesses the additional spending required to make substantial progress towards achieving the SDGs in Pakistan. We focus on critical areas of human (education and health) and physical (electricity, roads, and water and sanitation) capital. For each sector, we document the progress to date, assess where Pakistan stands relative to its peers, highlight key challenges, and estimate the additional spending required to make substantial progress. The estimates for the additional spending are derived using the IMF SDG costing methodology. We find that to achieve the SDGs in these sectors would require additional annual spending of about 16 percent of GDP in 2030 from the public and private sectors combined.
Farms, Fertiliser, and Financial Frictions
This paper develops a Dynamic Stochastic General Equilibrium (DSGE) model with a financial accelerator which captures key features of low-income countries (LICs). The predominance of supply shocks in LICs poses distinct challenges for policymakers, given the negative correlation between inflation and the output gap in the case of supply shocks. Our results suggest that: (1) in the face of a supply-side shock, the most desirable interest rate rule involves simply targeting current inflation and smoothing the policy interest rate; and (2) ignoring financial frictions when evaluating policy rules can be particularly problematic in LICs, where financial frictions loom especially large.
Toward a Monetary Union in the East African Community
This paper examines how susceptible East African Community (EAC) economies are to asymmetric shocks, assesses the value of the exchange rate as a shock absorber for these countries, and reviews adjustment mechanisms that would help ensure a successful experience under a common currency. The report draws on analysis of recent experiences and examines likely future changes in the EAC economies.
Sebastian Walker, 1942-1991
Autobiography of the pioneering publisher who died of AIDS in 1991
Damming the Flood
Long before a devastating earthquake hit in January 2010, Haiti was one of the most impoverished and oppressed countries in the world. However, in the late 1980s a remarkable popular mobilization known as Lavalas ("the flood") sought to liberate the island from decades of US-backed dictatorial rule. Damming the Flood analyzes how and why the Lavalas governments led by President Jean-Bertrand Aristide were overthrown, in 1991 and again in 2004, by the enemies of democracy in Haiti and abroad. The elaborate campaign to suppress Lavalas was perhaps the most successful act of imperial sabotage since the end of the Cold War. It has left the people of Haiti at the mercy of some of the most rapacious political and economic forces on the planet. Updated with a substantial new afterword that addresses the international response to the earthquake, Damming the Flood is both an invaluable account of recent Haitian history and an illuminating analysis of twenty-first-century imperialism.
Senegal
This paper discusses key issues related to Senegal’s economy. Government proposals for constitutional reforms were approved by 63 percent of the vote in a referendum held on March 20, 2016. Growth was robust at 6.5 percent in 2015 and is projected to continue at a similar level this year. Although the economic outlook remains favorable, downside risks remain. Economic policies and structural reforms are needed to sustain growth and continued fiscal consolidation to meet regional convergence criteria. To keep growth buoyant, steadfast action is needed in following three areas: (1) improving business environment to open economic room for small- and medium-sized enterprises and foreign direct investment; (2) strengthening public financial management and governance; and (3) rebuilding government's fiscal space.
How to Set Compensation for Government Employees
Government compensation-setting should be informed by the monitoring of trends in recruitment and retention and benchmarking against the private sector. Unduly high compensation is an inefficient use of resources, while insufficient compensation can hinder efforts to recruit, retain, and motivate the workforce needed to deliver adequate public services. Analyzing these factors at a granular level, for example, by occupation or position, can help to identify specific challenges.
