## IMF and Korea Development Institute Conference on Achieving Inclusive Growth (December 2018)

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**Canonical URL:** [IMF and Korea Development Institute Conference on Achieving Inclusive Growth (December 2018)](https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2018.pdf)

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### Conference overview and keynote speakers
- The International Monetary Fund (IMF) and the Korea Development Institute (KDI) hosted a conference on “Achieving Inclusive Growth: A Policy Debate” in Seoul, Korea on November 29, 2018.
- Introductory remarks were provided by Jeong Pyo Choi (President of the KDI), Mok-hee Rhee (Vice Chairman of Presidential Committee on Jobs), Christine Lagarde (Managing Director of the IMF, via videoconference), and Jonathan D. Ostry (Deputy Director, Research Department, IMF).
- Keynote speeches were delivered by Nobel Laureate Joseph Stiglitz and Professor Jeffrey Sachs.

### Trends and challenges in infrastructure investment in low-income developing countries (LIDCs)
- Gurara et al. (2018) examine trends in infrastructure investment and financing in LIDCs.
- Findings:
  - Public investment accelerated over the last 15 years, increasing the stock of infrastructure assets in LIDCs, though large gaps remain compared to emerging markets.
  - Infrastructure in LIDCs is largely provided by the public sector; private participation is mostly channeled through Public-Private Partnerships.
  - Grants and concessional loans are an essential source of infrastructure funding in LIDCs.
  - Bank lending remains a limited complementary source of infrastructure finance, concentrated in a few countries.
- Policy implications:
  - Bridging infrastructure gaps requires improving the efficiency of public spending, mobilizing domestic resources and support from development partners, and crowding in private investment.

### Monetary policy frameworks and training activities
- Workshop on the Design of Monetary Policy Frameworks:
  - IMF organized a workshop titled “The Design of Monetary Policy Frameworks” at IMF headquarters on October 26th.
  - Events included a keynote by Sir Paul Tucker, a presentation by Filiz Unsal, a luncheon speech by Andrew Berg and Rafael Portillo on the book “Monetary Policy in Sub-Saharan Africa,” and two panel discussions on (i) dimensions needing improvement or change in monetary policy building blocks and (ii) country experiences with designing and implementing sound principle-based frameworks.
- Monetary Policy Modelling and Forecasting Training:
  - Customized training missions on modelling and forecasting were organized to Malawi in October 2018 and Rwanda in November 2018.
  - Malawi mission tasks:
    - Assisted the Reserve Bank of Malawi (RBM) forecasting team to update the structure and calibration of its quarterly projection model.
    - Reviewed staff experience operating the Forecasting and Policy Analysis System (FPAS) during official forecast rounds in June and September 2018 and helped lay basis for the next round in December 2018.
    - Reviewed draft documentation on model structure and FPAS processes prepared by RBM staff.
  - Rwanda mission tasks:
    - Reviewed and advised the National Bank of Rwanda (BNR) management on establishing processes and organizational changes consistent with FPAS-consistent practices.
    - Assisted the BNR forecasting team to further develop modelling and forecasting capacity in line with the project’s work plan and milestones agreed with the authorities in April 2018.
    - Noted important steps taken by authorities towards establishing FPAS at the BNR; Bank management prepares to phase in key FPAS processes starting from the beginning of the next year.

### Financial inclusion research and outreach
- Filiz Unsal presented “Identifying Constraints to Financial Inclusion and Their Impact on GDP and Inequality: A Structural Framework for Policy” on October 10 at the IMF’s Annual Meetings in Bali, Indonesia.
  - Presentation was part of the six “Analytical Corner” talks and attracted more than 200 participants, including prominent policymakers and high-level officials from LICs, journalists, academics, and private sector participants.
- Filiz Unsal also presented the financial inclusion framework at the IMF’s Financial Surveillance Group meeting on November 28.
  - Seminar focused on integrating financial inclusion analysis into financial surveillance at the Fund, with particular insights into data sets, methodology, and approaches to overcome key challenges.

### Coping with climate change workshop
- IMF held a workshop on “Coping with Climate Change” on October 1, 2018 at the OCP offices in Paris, in collaboration with organizations including the National Academy of Sciences, Engineering, and Medicine and sponsored by DFID and other partners.
- Workshop objectives and coverage:
  - Forge links among economists across fields to enhance understanding of climate change issues.
  - Solicit expert feedback on econometric evidence on decoupling of emissions and growth.
  - Review general equilibrium modeling of policy choices for countries, particularly low-income countries, to cope with effects of climate change.
  - Showcase recent efforts by central banks and the financial sector to assist the global effort to combat climate change, including contributions from experts at the Banque de France.

### Gender inequality research and capacity building
- IMF-DFID team presented gender inequality research in London in the last week of October.
  - Vivian Malta discussed the DSGE gender and inequality model and its applications at the European Bank for Reconstruction and Development.
  - Vivian Malta, Lisa Kolovich, and Monique Newiak offered a one-day course for DFID country economists covering IMF research on macro and gender, a gender budgeting study, two toolkits, and theoretical research on gender/income inequality.
  - Monique Newiak presented a country case study on Nigeria and discussed operational aspects of IMF staff missions at the annual DFID economist conference.
  - Lisa Kolovich and Vivian Malta presented the gender research program at the LSE Inequalities Institute, Cambridge University, and the New College for the Humanities.

### Workshops on public investment in Cameroon and Bolivia
- Workshops featuring the DIG model and outreach on the Infrastructure Policy Support Initiative (IPSI) were held in La Paz, Bolivia (Sep 26 - Oct 2, 2018) and Yaoundé, Cameroon (Nov 6-9, 2018).
- Workshop content and attendees:
  - Applied the DIG model to Cameroon and Bolivia to inform policy decisions.
  - Dawit Tessema highlighted analysis elements for public investment decisions, including (i) investment-growth linkages, (ii) potential inefficiencies of public investment, (iii) financing mix and public debt accumulation, and (iv) fiscal policy reactions necessary to ensure debt sustainability.
  - Cameroon attendance: About fifty technical staff from the Ministry of Economy, Planning and Regional Development (MINEPAT), Ministry of Finance (MINFI), and Ministry of Public Works (MINTP).
  - Bolivia attendance: twenty technical staff from the Ministry of Economy and Public Finance (MEPF), Central Bank of Bolivia (BCB), and Unit for Analysis of Social and Economic Policies (UDAPE).
  - Dawit Tessema presented an overview of IPSI and outcomes of the pilot phase.

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_Source: https://www.imf.org/-/media/files/topics/lics/macro-research-for-development/newsletters/dec2018.pdf_