Opening Remarks by IMF Managing Director Christine Lagarde at the Center for Global Development Book Launch Event

IMF News, September 14, 2018

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Canonical URL: Opening Remarks by IMF Managing Director Christine Lagarde at the Center for Global Development Book Launch Event

Event: Book launch for Race to the Next Income Frontier: How Senegal and Other Low-Income Countries Can Reach the Finish Line.
Date: September 14, 2018.
Emphasis: The book focuses on translating “what needs be done” into “how can this be done effectively.”

Senegal has made considerable progress in building macroeconomic stability over the past few decades.
Economic growth:
- "at or above 6 percent in the last three years."
- To create jobs for the next generation, Senegal will need to maintain growth rates of "7 to 8%."
Demographics:
- "45 percent of the Senegalese population is under the age of 14."
National strategy:
- "Plan Sénégal Emergent" aims to make Senegal an upper-middle-income emerging market economy by "2035."
- Plan objectives include broadening, accelerating, and deepening reforms to:
- Provide opportunities for small and medium enterprises.
- Improve the climate for foreign investment.
- Build a first-class business environment.
- Make energy available at fair prices for companies and households.
- Improve governance.
- Facilitate the diversification of exports.

Argument: A roadmap is necessary but not sufficient; countries must move from prescription ("what to do") to practice ("how to do").
Peer learning:
- Low-income countries can learn from countries that reached middle-income status, e.g., Cabo Verde, Mauritius, and Seychelles.
- The IMF, with "our 189 members," serves as a hub for best practices and knowledge sharing.
The book as a practical tool:
- Brings together different perspectives and lessons to navigate reform processes.
- Provides actionable guidance that is already producing dividends.

Policy uptake and coordination:
- The book helped policymakers identify "11 critical reforms" across areas from good governance to social protection.
- The government established a monitoring committee with representatives from key ministries to implement the identified measures.
Partnerships and initiatives:
- Senegal and ten other nations are leveraging the new partnership under the G20 Compact with Africa to promote private investment and better integrate with the global economy.
- IMF and the Senegalese Ministry of Finance organized a “Hackathon” in Dakar to improve the government’s tax collection system; "100 young entrepreneurs" participated.
Ongoing challenges:
- Public debt "has continued to grow"; authorities need to mobilize more domestic revenues to preserve debt sustainability while sustaining high growth performance.
- Discovery of significant oil and gas deposits raises the need to preserve good governance and fiscal transparency in managing these revenues.
Role of the book:
- Serves as a roadmap to reform and a practical call to action for preserving governance and fiscal transparency while pursuing growth.

The book’s focus on “how to” get things done is welcomed and seen as a model for practical, action-oriented policy guidance.
The IMF will continue to advocate for peer-to-peer learning and to support the dissemination of practical knowledge to help more countries reach the next income frontier.
Acknowledgement: Congratulates authors Ali Mansoor, Daouda Sembene, and Salifou Issoufou for producing a work that combines actionable guidance with practical engagement.

Opening Remarks by IMF Managing Director Christine Lagarde at the Center for Global Development Book Launch Event