Those who have worked hard in the past decade to mobilize unprecedented levels of funding and attention for health programs in developing countries have contended that the imfs approach to macroeconomic management has constrained effective use of donor funds and thereby weakened. Evrensel department of economics, portland state university, portland, or 972070751, usa abstract this paper examines the effectiveness of fundsupported stabilization programs by investigating whether the imf achieves its own objectives in such programs. Social issues in imfsupported programs imf occasional paper. What happens to social spending in imfsupported programs. Controversy surrounds imfsupported programs in lowincome countries and their effect on the health sector. Structural adjustment programmes of international financial institutions have typically set the fiscal parameters within which health policies operate in developing countries. Why does pakistan have repeated macroeconomic crises. Social issues in imf supported programs international monetary fund occasional paper ebook. As part of its mandate, the imf seeks to create the conditions necessary for sustained highquality growth, which encompasses a broad range of elements. The selective focus of this paper on social safety nets and public spending on education and health care allows in depth consideration of a limited number of important social policies that are closely linked to the design of economic programs. Fund supported programs, fiscal policy, and income distribution published on by international monetary fund. Social issues in imfsupported programs ebook by ritha mrs. This webonly series replaced staff position notes in. This compensation does not influence our school rankings, resource guides, or other information published on this site.
Buy structural conditionality in imf supported programs. Pdf social issues in imfsupported programs researchgate. The application for a social security number is the ss5 form. The imf and social policies after the financial crisis. An imf program reduces the extent of the belttightening needed and aims at bringing about a quicker rebound in incomes than would otherwise be the case. Sudden stops and imf supported programs, barry eichengreen, poonam gupta, ashoka mody. Imfsupported programs, this literature uses the term catalytic to describe a situation in which imf financing has a multiplier effect on official and private capital inflows so that, for each dollar of imf support, the country receives more than one dollar in total. Inequality and fiscal policy international monetary fund.
The experience with imfsupported reform programs in central. Overall, our conclusion from the direct and indirect effects is that greater participation in imf loan programs reduces economic growth. Social issues in imfsupported programs international monetary fund occasional paper ebook. This paper will examine trends in health and education spending in countries with and without fund supported programs during 1980 and 2009. The imf s growing emphasis on social policy issues has emerged from an explicit recognition that more importance must be attached to equity and the full development of human resources if reform programs are to be viable in the long run. Feb 01, 2015 read structural adjustment and public spending on health. The department of the treasury imf issues the ss5 not the social security administration. What determines the implementation of imfsupported programs. Staff discussion notes showcase the latest policyrelated analysis and research being developed by individual imf staff and are published to elicit comment and to further debate. In imfsupported programs, the broadening of the focus to distributional issues was reflected in the creation of the poverty. Yet, we currently lack a systematic understanding of the ways in which these programmes impact upon child and maternal health.
May 19, 2016 imf supported adjustment programs especially those backed by the esaf, the facility. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. The imfs threeyear extended fund facility program in egypt will provide an infusion of muchneeded funds to help the country deal with some of. In imfsupported programsrecent staff research, edited by mody, ashoka, rebucci, alessandro, 160 88.
Social expenditure is public spending on education and health, although it is reasonable to think it also covers expenditure on such things as child care. Since 2010, over half of fund supported arrangements have involved a prgt facility. Economic impact over the short and longer term, imf working paper 273 washington. This paper will examine trends in health and education spending in countries with and without fundsupported programs during 1980 and 2009. The selective focus of this paper on social safety nets and public spending on education and health care allows indepth consideration of a limited number of important social policies that are closely linked to the design of economic programs. Greater fiscal and external accommodation than in the past was. It is the first to combine macrodata and microdata to address this issue systematically across five dimensions of child health. It was initiated as part of the work by the world bank and imf to strengthen the poverty focus of adjustment programs in lowincome countries, in particular within the framework of the initiative for. Politics and imf conditionality axel dreher, janegbert. The fund provides considerable support to lowincome countries lics. A key element of the imfs involvement in social policies has been collaboration with other relevant international agencies, especially the world bank, in order to draw. Structural conditionality in imfsupported programs kindle. Especially where social indicators are failing to improve, despite increases in public spending.
Imfsupported programs, this literature uses the term catalytic to describe a situation in which imf financing has a multiplier effect on official and private capital inflows so that, for each dollar of imf support, the country receives more than one dollar in total inflows and, in general, finds mixed evidence of such effects. Projections of nextyear aid inflows broadly correct and have also become more accurate over recent years. Imf lending practices respond to economic conditions but are also sensitive to politicaleconomy variables. Whenever feasible, the imf has drawn, and will continue to draw, upon the work of the world bank. Mozambique is piloting the uns social protection floor initiative, which started in 2011. Social protection issues in the policy and operations of the imf. Of course, the imf is only one external agency engaged with pakistan on economic policy questions.
Featured programs and school search results are for schools that compensate us. The international monetary fund has grown in resources and responsibilities since it was established in 1944. Social issues in imf supported programs occasional paper no. Social issues in imfsupported programs occasional paper no. Since the launch of the prgf, programs have increasingly accommodated the fiscal spending of aid in countries that received scaledup aid inflows. First, this study does not question the imfs existence, its rationale, its programs, and the content of conditionality associated with these programs. A central component of international monetary fund imf programs is reducing government budget deficits. Sep 17, 2003 on september 23, 2003, the world bank group and the board of governors of the international monetary fund imf will meet in dubai to discuss the work of their respective institutions in. These include sound macroeconomic policies, growthenhancing structural reforms, good governance, and such social policies as costeffective social safety nets and targeted social expenditures.
Network for global economic justice is a coalition of 205 grassroots, faithbased, policy, womens, social and economicjustice, youth, solidarity, labor, and development organizations dedicated to the profound transformation of. Imfsupported programs have sought in collaboration with the world bank and other international institutions to promote universal access to basic social. This includes concessional financing from the poverty reduction and growth trust prgt, which currently carries an interest rate of zero percent. Sudden stops and imfsupported programs, imf working papers, vol 06101. Our central finding is that imf programs shrink the role played by domestic politics. The experience with imfsupported reform programs in central and eastern europe. Specifically, the sizes and frequencies of loans are influenced by a countrys presence at the fund, as measured by the countrys share of quotas and professional staff.
Read structural adjustment and public spending on health. The effects of imf operations on social expenditure. Those who have worked hard in the past decade to mobilize unprecedented levels of funding and attention for health programs in developing countries have contended that the imfs approach to macroeconomic management has constrained effective use of donor funds and thereby. The scope of social policies, and the channels through which macroeconomic policies can have a social impact, cover a broad area. Effectiveness of imfsupported stabilization programs in. It was initiated as part of the work by the world bank and imf to strengthen the poverty focus of adjustment programs in lowincome countries. When timely world bank input is either not available or insufficient, program design should allow for the fuller integration of relevant social policies at a later stage e. It has become abundantly clear that the imfs original rationale no longer fits. Factsheet social dimensions of the imfs policy dialogue. Effectiveness of imfsupported stabilization programs in developing countries ays. Structural adjustment programmes saps consist of loans provided by the international monetary fund imf and the world bank wb to countries that experienced. This paper explores the international monetary funds imf involvement in 17 latin american countries 1 from 1980 to 2000, to determine if imf lending during that time had a positive or negative impact on the regions social development. Although the imfs structural adjustment programs saps are designed to improve a countrys. Programs have increased public spending for such services in countries where this spending was low, supported highquality expenditure in these sectors, and protected or sought real increases in these expenditures during adjustment periods when poor.
Some conflicting perspectives summary between 1997 and 1999, the international monetary fund and world bank funded major programs to help russia and the asian countries counter their economic crises and to promote basic economic reform. Structural adjustment programmes saps consist of loans provided by the international monetary fund imf and the world bank wb to. For this reason, the imf, as part of its surveillance process, collects and monitors social and poverty indicators. How to evaluate the effects of imf conditionality springerlink. Social safeguards and program design in prgt and psi. The imf has, therefore, taken a progressively more active stance on social policies to ensure that they are well integrated into imfsupported programs and imf policy advice. Do imf supported programs impose austerity on countries in financial crisis. Imf supported programs have sought to promote universal access to basic social services. The imf working papers series is designed to make imf staff research available to a wide audience. In imf supported programs, the broadening of the focus to distributional issues was reflected in the creation of the poverty. The new ss5 forms do not state who or what publishes them, the earlier ss5 forms state that they are department of the treasury forms. On september 23, 2003, the world bank group and the board of governors of the international monetary fund imf will meet in dubai to discuss the work of their respective institutions in. The imf has, therefore, taken a progressively more active stance on social policies to ensure that they are well integrated into imf supported programs and imf policy advice.
Jan 30, 2018 the imfs threeyear extended fund facility program in egypt will provide an infusion of muchneeded funds to help the country deal with some of its macroeconomic issues. The imfs preference for social programs that target the poorest in society leaves. What happens to social spending in imf supported programs. We ask how domestic political considerations shape the distribution of cuts made by governments in imf programs. Jan 14, 2000 to help promote social reform, imf supported programs could use as reference points the targets established by the authorities for selected intermediate social indicators e. Where feasible and appropriate, policy measures to. An initial step in the matching procedure is to calculate the probability of participating in imfsupported programs conditional on observable. Social issues in imfsupported programs imf occasional. Sudden stops and imf supported programs, imf working papers, vol 06101. Beth thorne is chief of staff at project rousseau, an education nonprofit based in. Does conditionality in imfsupported programs promote revenue.
Structural adjustment programmes adversely affect vulnerable. A country in financial crisis is likely to face a period of austerity whether it approaches the imf or not. Sudden stops and imfsupported programs, barry eichengreen, poonam gupta, ashoka mody. Review of implementation of imf commitments in support of the. Does the imf constrain health spending in poor countries. We find no significant effects from imf loan programs on inflation, government consumption, and the currentaccount balance. Social spending has been largely safeguarded under most fundsupported programs during 200211, and has grown over 19852009, particularly in prgt programs. The fund continues to be criticized for squeezing social spending in developing countries. Under the imfsupported program, the government revamped its social protection programs in 2011 and increased its budget allocation to social protection for 2012 by one third. Imf supported adjustment programs especially those backed by the esaf, the facility.
Isbn 1589060946 since its founding in 1964, the imf institute has provided macroeconomic management training to over 20,000 officials from almost all of the international monetary fund s 183 member countriesmore than,000 at imf headquarters in washington. Macrosocial aspectsfindings the focus on macrosocial issues in fundsupported programs has increased recently. Still, the imfs focus on macroeconomic stability and its unique access to senior policymakers make the question more directly relevant to it. The social impact of the international monetary fund. Jun 20, 2017 this study adds to the state of the art by analyzing the impact of international monetary fund imf programs on childrens health, mediated by their parents education.
Buy structural conditionality in imfsupported programs. The heavily indebted poor countries initiative, launched in 1996 by the imf and the world bank, emphasized that resources from debt relief should be used to increase propoor spending, including on the social sectors. An imf or bank supported program should be consistent with the policy framework contained in the countrystrategy paper. A key element of the imf s involvement in social policies has been collaboration with other relevant international agencies, especially the world bank, in order to draw. To help promote social reform, imfsupported programs could use as reference points the targets established by the authorities for selected intermediate social indicators e. This study adds to the state of the art by analyzing the impact of international monetary fund imf programs on childrens health, mediated by their parents education. You can get a copy of the ss5 you filled out by sending form ssal996 to the ss administration. To be sure, many imfsupported programs did attempt to address these structural issues, but, in the.
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