The International Monetary Fund has backed economists who argue that inequality is a drag on growth in a discussion paper that has also dismissed rightwing theories that efforts to redistribute incomes are self-defeating. The Washington-based organisation, which advises governments on sustainable growth, said countries with high levels of inequality suffered lower growth than nations that distributed incomes more evenly. Backing analysis by the Keynesian economist and Nobel prizewinner Joseph Stiglitz, it warned that inequality can also make growth more volatile and create the unstable conditions for a sudden slowdown in GDP growth. And in what is likely to be viewed as its most controversial conclusion, the IMF said analysis of various efforts to redistribute incomes showed they had a neutral effect on GDP growth. This last point is expected to dismay rightwing politicians who argue that overcoming inequality robs the rich of incentives to invest and the poor of incentives to work and … [Read more...] about IMF study finds inequality is damaging to economic growth
Brasilia: Prime Minister Narendra Modi and other four BRICS leaders on Thursday called for an "urgent need" to strengthen and reform the United Nations and other multilateral organisations, including the WTO and the IMF, to address the significant challenges being faced by the developing countries. Prime Minister Modi was in the Brazilian capital of Brasilia to attend the 11th BRICS Summit. In a joint statement, the leaders of India, Brazil, Russia, China and South Africa said they are committed to multilateralism, cooperation of sovereign states to maintain peace and security, advance sustainable development and ensure the promotion and protection of human rights and fundamental freedoms for all and build a brighter shared future for the international community. The BRICS leaders said they are committed to "helping overcome the significant challenges currently facing multilateralism, as well as upholding the central role of the UN in international affairs and respecting international … [Read more...] about BRICS Leaders Call for ‘Urgent’ Need to Reform UN, WTO, IMF to Address Issues of Developing Countries
The Tamil Nadu government is keen on engaging with the International Monetary Fund (IMF) for undertaking scoping studies, Deputy Chief Minister O. Panneerselvam said in Washington, D.C. on Thursday. “Tamil Nadu wishes to take this engagement with the IMF further in terms of obtaining IMF’s technical assistance and consultative expertise for improving the public financial management in the State. IMF has agreed to send a consultative mission to engage in a scoping study, which has received the Government of India’s approval,” an official press release quoted Mr. Panneerselvam as saying.The Deputy CM said it was welcome that the IMF, which had close coordination with the Union government, had now started to interact with the States as well. “Each State is unique and has its own set of issues, the understanding of which is of critical importance to the overall policy priorities of the country,” he added. Visits World Bank Mr. Panneerselvam, who also … [Read more...] about State keen on working with IMF on scoping studies: Dy. CM
Video PlayerClose RABAT, Oct. 14 (Xinhua) -- Morocco has been officially nominated as the host of the 2021 annual meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF), Moroccan official MAP news agency reported on Sunday. WBG President Jim Yong Kim, IMF Managing Director Christine Lagarde and Morocco's Economy and Finance Minister Mohamed Benchaaboun signed an agreement on the hosting of the event Sunday following the end of the annual meetings of the two international institutions in Bali, the same source said. The 2021 edition will be an opportunity to highlight the structural reforms undertaken by Morocco as well as the various advances made by the kingdom, the source added. The IMF is confident in the capacity and potential of Morocco, a country that stands out with a plural identity and opens to the world, Lagarde was quoted as saying at the official signing ceremony. Last April, Morocco was chosen to host the 2021 edition of the WBG-IMF annual … [Read more...] about Morocco formally nominated host of IMF-World Bank 2021 annual meetings
Like many countries, the Greek government relies on borrowed money to balance its books. The recession has made this harder to achieve, because tax revenues are falling just as welfare payments start to rise. It doesn't help that, in Greece, tax evasion is commonplace and pension rights are unusually generous – but, to be fair, using public spending to even out the bumps of the global downturn is what most large developed economies are trying to do right now. Unfortunately, investors have lost confidence in the Greek government's ability to walk this tightrope – so they have been demanding ever higher rates of interest to compensate for the risk that they might not get their money back. The higher its borrowing costs, the harder it is for the Greek economy to grow itself out of trouble. Events began to spiral out of control when credit rating agencies downgraded Greek government debt to "junk" status, pushing the cost of borrowing so high that the country effectively had … [Read more...] about Greek debt crisis: how did the Greek economy get into such a mess?