Download PDF

Peter J. Walker profiles Yale’s Rohini Pande, whose work focuses on how better institutions can make life fairer

In 1990 the Indian government said it would set aside some government jobs for lower-caste citizens, leading to widespread student protests and violence, including self-immolations. In the relative peace of the classroom, Rohini Pande, a second-year undergraduate economics student at Delhi University, argued that people should get jobs based on merit, not through special treatment.

A new experience two years later transformed her position. After coming of age as a member of India’s privileged elite, she found herself an outsider at the University of Oxford, though she was there as a prestigious Rhodes scholar.

“There was a distinct hierarchy between those from the United States and those from Asia and Africa,” Pande says in a video interview. “Scholars from poorer countries came to Oxford for a high-quality...

Author/Editor:

Ruchir Agarwal ; Gita Gopinath

Publication Date:

May 19, 2021

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Urgent steps are needed to arrest the rising human toll and economic strain from the COVID-19 pandemic that are exacerbating already-diverging recoveries. Pandemic policy is also economic policy as there is no durable end to the economic crisis without an end to the health crisis. Building on existing initiatives, this paper proposes pragmatic actions at the national and multilateral level to expeditiously defeat the pandemic. The proposal targets: (1) vaccinating at least 40 percent of the population in all countries by the end of 2021 and at least 60 percent by the first half of 2022, (2) tracking and insuring against downside risks, and (3) ensuring widespread testing and tracing, maintaining adequate stocks of therapeutics, and enforcing public...

By Kristalina Georgieva and Abebe Aemro Selassie

Français

Sub-Saharan Africa is in the grips of a third wave of COVID-19 infections that threatens to be even more brutal than the two that came before.

This is yet more evidence of a dangerous divergence in the global economy. One track for countries with good access to vaccines, where strong recoveries are taking hold. And another for those countries that are still waiting and at risk of falling further behind.

The growth of infections in sub-Saharan Africa is now the fastest in the world, with an explosive trajectory that is outpacing the record set in the second wave. At this pace, this new wave will likely surpass previous peaks in a matter of days—and in some countries, infections are already more than double, or even triple, their January peaks. The latest (delta) variant—reportedly 60 percent more transmissible than earlier variants—has been detected in 14 countries.

When the...

By Kristalina Georgieva and Abebe Aemro Selassie

Sub-Saharan Africa is in the grips of a third wave of COVID-19 infections that threatens to be even more brutal than the two that came before.

This is yet more evidence of a dangerous divergence in the global economy. One track for countries with good access to vaccines, where strong recoveries are taking hold. And another for those countries that are still waiting and at risk of falling further behind.

The growth of infections in sub-Saharan Africa is now the fastest in the world, with an explosive trajectory that is outpacing the record set in the second wave. At this pace, this new wave will likely surpass previous peaks in a matter of days—and in some countries, infections are already more than double, or even triple, their January peaks. The latest (delta) variant—reportedly 60 percent more transmissible than earlier variants—has been detected in 14 countries.

When the pandemic first...

Download PDF

Programs that offer passports in return for investment have financial integrity risks that must be managed

As countries closed their borders to slow the spread of COVID-19, a second passport became an ever-more-desirable commodity, for those who could afford it. While not a new phenomenon—several countries have adopted “golden passport” programs over the years—the onset of the pandemic generated renewed interest. Price tags for a second citizenship—sometimes in only 30 days—range from $100,000 to $2.5 million. Antigua and Barbuda, Cyprus, Grenada, Jordan, Malta, St Kitts and Nevis, and Vanuatu are among the many countries that have offered such deals.

There are few figures about the trade in passports given the overall opacity of these programs. Nevertheless, firms that offer such services reported increasing demand for second passports in the midst of the pandemic. Requests from high-net-worth individuals in advanced economies...

June 28, 2021

Washington, DC: Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), announced today to the Executive Board of the IMF her proposal to appoint Mr. Bo Li as Deputy Managing Director, effective August 23, 2021. Mr. Li is currently Deputy Governor of the People's Bank of China (PBOC). He will succeed Mr. Tao Zhang, who, as previously announced, steps down on August 22.

In announcing her selection of Mr. Li, Ms. Georgieva said:

"Mr. Li brings extensive experience in central banking and law. During his more than 14 years of service at the PBOC between 2004 and 2018, he held a variety of senior positions, including as head of the legal and regulation department, and of two monetary policy departments. While at the PBOC, he was instrumental in supporting and implementing several important reforms and policies, including state-owned banking reform; anti-money laundering legislation; and establishing a...

The IMF’s Extended Credit Facility (ECF) provides financial assistance to countries facing protracted balance of payments difficulties—meaning their underlying macroeconomic imbalances are expected to be resolved over the medium or longer term. The facility supports economic programs aimed at restoring macroeconomic stability sustainably and reducing poverty durably through strong growth.

 

The ECF carries a zero-interest rate, with a grace period of 5½ years, and a final maturity of 10 years. The duration of Uganda’s ECF-supported program is three years for a loan of about $1 billion, disbursed in semi-annual tranches. Disbursements are subject to review, which are scheduled, at most, six months apart. These reviews assess the government’s progress in implementing its economic reforms.

 

The program was approved by the IMF Executive Board on June 28, 2021, which makes available the first disbursement of $258 million.

The COVID-19 pandemic—which led to a global recession and domestic containment measures— has caused economic and social strife in Uganda. It has reversed poverty gains, deteriorated fiscal balances, and put pressure on external buffers. The IMF Board approved a SDR722 million (about US$1 billion) Extended Credit Facility arrangement for Uganda. Approval of the ECF arrangement enables the immediate disbursement of about US$258 million. The three-year financing package will support the short-term response to the COVID-19 crisis and help sustain a post-crisis inclusive recovery. Reforms will focus on creating fiscal space for priority social spending, preserving debt sustainability, strengthening governance, and enhancing the monetary and financial sector framework.

The IMF’s Extended Credit Facility (ECF) provides financial assistance to countries facing protracted balance of payments difficulties—meaning their underlying macroeconomic imbalances are expected to be resolved over the medium or longer term. The facility supports economic programs aimed at restoring macroeconomic stability sustainably and reducing poverty durably through strong growth.

 

The ECF carries a zero-interest rate, with a grace period of 5½ years, and a final maturity of 10 years. The duration of Uganda’s ECF-supported program is three years for a loan of about $1 billion, disbursed in semi-annual tranches. Disbursements are subject to review, which are scheduled, at most, six months apart. These reviews assess the government’s progress in implementing its economic reforms.

 

The program was approved by the IMF Executive Board on June 28, 2021, which makes available the first disbursement of $258 million.

The COVID-19 pandemic—which led to a global recession and domestic containment measures— has caused economic and social strife in Uganda. It has reversed poverty gains, deteriorated fiscal balances, and put pressure on external buffers. The IMF Board approved a SDR722 million (about US$1 billion) Extended Credit Facility arrangement for Uganda. Approval of the ECF arrangement enables the immediate disbursement of about US$258 million. The three-year financing package will support the short-term response to the COVID-19 crisis and help sustain a post-crisis inclusive recovery. Reforms will focus on creating fiscal space for priority social spending, preserving debt sustainability, strengthening governance, and enhancing the monetary and financial sector framework.

The IMF’s Extended Credit Facility (ECF) provides financial assistance to countries facing protracted balance of payments difficulties—meaning their underlying macroeconomic imbalances are expected to be resolved over the medium or longer term. The facility supports economic programs aimed at restoring macroeconomic stability sustainably and reducing poverty durably through strong growth.

 

The ECF carries a zero-interest rate, with a grace period of 5½ years, and a final maturity of 10 years. The duration of Uganda’s ECF-supported program is three years for a loan of about $1 billion, disbursed in semi-annual tranches. Disbursements are subject to review, which are scheduled, at most, six months apart. These reviews assess the government’s progress in implementing its economic reforms.

 

The program was approved by the IMF Executive Board on June 28, 2021, which makes available the first disbursement of $258 million.

The COVID-19 pandemic—which led to a global recession and domestic containment measures— has caused economic and social strife in Uganda. It has reversed poverty gains, deteriorated fiscal balances, and put pressure on external buffers. The IMF Board approved a SDR722 million (about US$1 billion) Extended Credit Facility arrangement for Uganda. Approval of the ECF arrangement enables the immediate disbursement of about US$258 million. The three-year financing package will support the short-term response to the COVID-19 crisis and help sustain a post-crisis inclusive recovery. Reforms will focus on creating fiscal space for priority social spending, preserving debt sustainability, strengthening governance, and enhancing the monetary and financial sector framework. ###

The IMF’s Extended Credit Facility (ECF) provides financial assistance to countries facing protracted balance of payments difficulties—meaning their underlying macroeconomic imbalances are expected to be...

By Kristalina Georgieva and Abebe Aemro Selassie

Sub-Saharan Africa is in the grips of a third wave of COVID-19 infections that threatens to be even more brutal than the two that came before.

This is yet more evidence of a dangerous divergence in the global economy. One track for countries with good access to vaccines, where strong recoveries are taking hold. And another for those countries that are still waiting and at risk of falling further behind.

The growth of infections in sub-Saharan Africa is now the fastest in the world, with an explosive trajectory that is outpacing the record set in the second wave. At this pace, this new wave will likely surpass previous peaks in a matter of days—and in some countries, infections are already more than double, or even triple, their January peaks. The latest (delta) variant—reportedly 60 percent more transmissible than earlier variants—has been detected in 14 countries.

When the pandemic first...

By Kristalina Georgieva and Abebe Aemro Selassie

Sub-Saharan Africa is in the grips of a third wave of COVID-19 infections that threatens to be even more brutal than the two that came before.

This is yet more evidence of a dangerous divergence in the global economy. One track for countries with good access to vaccines, where strong recoveries are taking hold. And another for those countries that are still waiting and at risk of falling further behind.

The growth of infections in sub-Saharan Africa is now the fastest in the world, with an explosive trajectory that is outpacing the record set in the second wave. At this pace, this new wave will likely surpass previous peaks in a matter of days—and in some countries, infections are already more than double, or even triple, their January peaks. The latest (delta) variant—reportedly 60 percent more transmissible than earlier variants—has been detected in 14 countries.

When the pandemic first...

By Kristalina Georgieva and Abebe Aemro Selassie

Sub-Saharan Africa is in the grips of a third wave of COVID-19 infections that threatens to be even more brutal than the two that came before.

This is yet more evidence of a dangerous divergence in the global economy. One track for countries with good access to vaccines, where strong recoveries are taking hold. And another for those countries that are still waiting and at risk of falling further behind.

The growth of infections in sub-Saharan Africa is now the fastest in the world, with an explosive trajectory that is outpacing the record set in the second wave. At this pace, this new wave will likely surpass previous peaks in a matter of days—and in some countries, infections are already more than double, or even triple, their January peaks. The latest (delta) variant—reportedly 60 percent more transmissible than earlier variants—has been detected in 14 countries.

When the pandemic first...

Last Updated: June 28, 2021

On June 23, 2021, the Executive Board of the International Monetary Fund (IMF) completed the second and final review of Egypt’s economic reform program supported by a 12-month Stand-By Arrangement (SBA). The completion of the review allows the authorities to draw the equivalent of SDR 1,158.04 million (about US$ 1.7 billion), bringing total disbursements under the SBA to SDR 3,763.64 million (about US$ 5.4 billion, 184.8 percent of quota). The arrangement was approved by the Executive Board on June 26, 2020 (Press Release No. 20/248) to support the authorities’ economic reform program during the COVID-19 crisis.

The authorities’ program supported by the SBA aimed to help Egypt cope with challenges posed by the COVID-19 pandemic by providing balance of payments and budget support. The program also helped the authorities safeguard the macroeconomic stability achieved over the previous three years, support health and social spending to...

By Aqib Aslam and Maria Coelho

On June 5, 2021, Finance Ministers from the Group of Seven major industrialized nations committed to a global minimum corporate tax rate on multinationals of at least 15 percent. While there are a number of details yet to be hammered out in broader global discussions, this historic agreement heralds an important step forward on the road to international corporate tax reform.

It also highlights the role minimum taxes can play at the global level to help reverse nearly four decades of falling global corporate tax rates and reduce the incentives for large multinational firms to shift profits to low-tax jurisdictions to reduce their worldwide tax liability.

Our new study examines how different types of domestic minimum tax regimes can help countries preserve their corporate tax base and mobilize revenue.

Minimum taxation over the decades

There is an unusual tension in the world of corporate taxation. On the one...