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IMF Seminars, Conferences, and Economic Forums

Fiscal Policy, Equity, and Long-Term Growth in Developing Countries



Financial Deepening, Macro-Stability, and Growth in Developing Countries

Date: April 21-22, 2013

Place: IMF HQ2 Conference Hall 1
1900 Pennsylvania Ave., N.W. Washington D.C.

The International Monetary Fund and the World Bank will hold a joint conference at the IMF's headquarters in Washington, DC from April 21-22, 2013.

The conference is open to Spring Meetings attendees, accredited press, and all IMF and World Bank staff. For questions regarding the conference, please send an email to IMFWB@imf.org.

The global financial crisis refocused interest in fiscal policy as an instrument for growth and development, while also underlining the importance of fiscal sustainability for macroeconomic stability. In an environment of low growth in the advanced economies, developing countries have a strong incentive to seek out new domestic engines for efficiency and productivity growth, as well as for greater equity in development. The potential of fiscal policy to promote these objectives is therefore of great interest to developing country policymakers. The conference will focus on several key themes with presentations by IMF and World Bank staff and discussions led by academics and policymakers:

  1. Tax Policy and Expenditure Composition for Growth: The session will consider how tax policy constraints can be overcome as well as identify what revenue and expenditure sources are most growth-friendly.

  2. Leveraging the Power of Infrastructure Investment: This session will consider how infrastructure investment can close the infrastructure gap and boost growth prospects.

  3. Fiscal Institutions for Growth: This session will examine the role of fiscal rules, fiscal responsibility frameworks, and medium-term frameworks for growth.

  4. Fiscal Frameworks for Growth in Natural Resource-Rich Countries: Natural resource wealth poses a unique opportunity for developing countries, but can also bring with it macroeconomic, fiscal and governance challenges. This session will address questions of how much to save versus spend, managing volatility and the political economy of natural resource-led development.

  5. Fiscal Policy for Poverty Reduction, Improved Income Distribution and Human Capital Development: The session will focus on the role fiscal policy can play in reducing income inequality and achieving more equitable social outcomes.

AGENDA

Note: Each presentation and discussion will be 20 minutes, followed by 30 minutes of questions and answers. Discussants will be asked to broaden the discussion rather than to focus on the paper presentations.

Day One
Sunday, April 21

1:00–2:00 pm Registration
2:00–2:30 pm Opening Remarks: Christine Lagarde (Managing Director, IMF) and Jim Yong Kim (President, World Bank)
2:30–4:00 pm Session I: Tax Policy and Expenditure Composition for Growth

Chair:
Otaviano Canuto, Vice President and Head of Network, Poverty Reduction and Economic Management, World Bank

Presenters:
Michael Keen (IMF): Overcoming the Constraints to Growth: The Role of Tax Policy and Expenditure Reforms

Overcoming the Constraints to Growth: The Role of Tax Policy and Expenditure ReformsSee the presentation


Santiago Acosta-Ormaechea (IMF) and Atsuyoshi Morozumi (University of Nottingham): Can a Government Enhance Long-Run Growth by Changing the Composition of Public Expenditure?

Can a Government Enhance Long-Run Growth by Changing the Composition of Public Expenditure?See the presentation


Discussant:
Jorge Martinez-Vazquez (GSU)

Fiscal Policy, Equity and Long-Term Growth in Developing Countries: Comments to Keen and Acosta-Ormaechea/MorozumiSee the presentation

4:00–4:30 pm Coffee break
4:30–6:00 pm Session II: Leveraging the Power of Infrastructure Investment

Chair:
Antoinette Sayeh, Director, African Department, IMF

Presenters:
Sanjeev Gupta, Alvar Kangur, Chris Papageorgiou, Abdoul Aziz Wane (IMF): Investing in Growth: Efficiency-Adjusted Public Capital and Growth

Efficiency-Adjusted Public Capital and GrowthSee the presentation


Norman Loayza and Rei Odawara (WB): Infrastructure and Economic Growth in Egypt

Infrastructure and Economic Growth in EgyptSee the presentation


Discussant:
Charles R. Hulten (University of Maryland)

Comments at the Conference on ‘Fiscal Policy, Equity, and Long-Term Growth in Developing Countries’See the presentation

6:00–7:00 pm Cocktails (HQ2-2nd Floor Cafeteria)

Day Two
Monday, April 22

9:00–10:30 am Session III: Fiscal Institutions for Growth

Chair:
Otaviano Canuto, Vice President and Head of Network, Poverty Reduction and Economic Management, World Bank

Presenters:
Martine Guerguil (IMF): Fiscal Rules and Fiscal Responsibility Frameworks for Growth in Emerging and Low Income Countries

Fiscal Rules and Fiscal Responsibility Frameworks for Growth in Emerging and Low-Income CountriesSee the presentation


Jim Brumby (WB): Fiscal Performance and Global Experience with Medium Term Expenditure Frameworks (MTEFs)

Fiscal Performance and Global Experience with Medium Term Expenditure FrameworksSee the presentation


Discussant:
Andrew Warner (IMF Resident Scholar)

Conference on Fiscal Policy, Equity and Long-Term Growth in Developing Countries: Discussion notes for Session IIISee the presentation

10:30–11:00 am Coffee break
11:00 am–12:30 pm Session IV: Fiscal Frameworks for Growth in Natural Resource-Rich Countries and Small Economies

Chair:
Sri Mulyani Indrawati, Managing Director, World Bank

Presenters:
Alex Segura, Todd Matina, Marcos Poplawski-Ribeiro, and Christine Richmond (IMF): Fiscal Frameworks for Resource Rich Developing Countries

Fiscal Frameworks for Resource-Rich Developing CountriesSee the presentation


Anand Rajaram (WB): Rents to Riches: The Political Economy of Natural Resource-Led Development

The Political Economy of Natural Resource-Led DevelopmentSee the presentation


Discussant:
Tony Venables (University of Oxford)

Fiscal frameworks for growth in natural resource rich developing economies: Discussant’s commentsSee the presentation

12:30–2:00 pm Lunch (BY INVITATION ONLY)
Luncheon Speaker:Ngozi Okonjo-Iweala (Finance Minister of Nigeria)
2:00–3:30 pm Session V: Fiscal Policy for Poverty Reduction, Improved Income Distribution and Human Capital Development

Chair:
Carlo Cottarelli, Director, Fiscal Affairs Department, IMF

Presenters:
Nora Lustig (Tulane University): The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico, Peru and Uruguay: An Overview

Taxes, Social Spending and Income Redistribution in Latin AmericaSee the presentation


Jose Antonio Cuesta Leiva (WB): Social Spending, Distribution and Equal Opportunities

Social Spending, Distribution and Equal OpportunitiesSee the presentation


Discussant:
Nancy Birdsall (Center for Global Development)

Fiscal Policy for Poverty Reduction, Improved Income Distribution and Human CapitalSee the presentation

3:30–4:00 pm Coffee break
4:00–5:30 pm Panel Discussion: Challenges of Fiscal Policy to Sustain Growth

Panelists:
Otaviano Canuto (Vice President and Head of Network, PREM, World Bank)
Ravi Kanbur (Cornell University)
Benno J. Ndulu (Governor of the Central Bank of Tanzania)
Maria Kiwanuka (Ugandan Minister of Finance)

Moderator:
Scott Morris (Center for Global Development)
5:30 pm Wrap Up and Concluding Remarks

Carlo Cottarelli Director, Fiscal Affairs Department, IMF

Organizers’ Contact Information:

For general information email:
IMFWB@imf.org

For questions regarding the conference program contact:
Stella Kaendera skaendera@imf.org

For logistical questions contact:
Juliana Peña
jpena@imf.org