{
  "title": "Experience with Budgetary Convergence in the WAEMU",
  "publication": "IMF Working Papers, June 1, 2002",
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  "summary": "This paper reviews the experience of fiscal adjustment undertaken in the West African Economic and Monetary Union (WAEMU) countries since the entry into force of the 1994 treaty establishing the framework for a regional convergence of national fiscal policies.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Paper reviews fiscal adjustment experience in the West African Economic and Monetary Union (WAEMU) countries since the entry into force of the 1994 treaty establishing the framework for a regional convergence of national fiscal policies.\n- Proposes a measure of the structural deficit that corrects for movements of both the business cycle and terms of trade.\n- Notes that although fiscal deficits worsened in 1998-2001 in some countries because of terms of trade deterioration and unfavorable movements in the business cycle, convergence stalled even when corrected for these factors.\n- Concludes that meeting fiscal deficit targets in the future will be facilitated by a favorable external environment but will, in any case, require a higher revenue ratio and downward pressure on government wages as shares of GDP."
    },
    {
      "heading": "Methodology: Structural deficit measure",
      "content": "- Proposes a measure of the structural deficit that corrects for movements of both the business cycle and terms of trade.\n- Emphasis on adjusting fiscal deficit measures to account for:\n  - business cycle movements\n  - terms of trade fluctuations and shocks"
    },
    {
      "heading": "Findings on convergence and fiscal adjustment",
      "content": "- Fiscal deficit worsened in 1998-2001 in some WAEMU countries, partly attributable to:\n  - terms of trade deterioration\n  - unfavorable movements in the business cycle\n- Even after correcting deficits for business cycle and terms of trade movements, fiscal convergence stalled."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Future success in meeting fiscal deficit targets will be aided by a favorable external environment.\n- Regardless of external conditions, meeting deficit targets requires:\n  - a higher revenue ratio\n  - downward pressure on government wages as shares of GDP\n\n---\n\n Content in this bundle\n\n- Experience with Budgetary Convergence in the WAEMU - WP/02/108\n  - Experience with Budgetary Convergence in the WAEMU - WP/02/108 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Experience with Budgetary Convergence in the WAEMU - WP/02/108 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/experience-with-budgetary-convergence-in-the-waemu-15848"
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    "Authors: Paul R Masson, Ousmane Dore",
    "Published: June 1, 2002",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451853117.001",
    "Paper reviews fiscal adjustment experience in the West African Economic and Monetary Union (WAEMU) countries since the entry into force of the 1994 treaty establishing the framework for a regional convergence of national fiscal policies.",
    "Proposes a measure of the structural deficit that corrects for movements of both the business cycle and terms of trade.",
    "Notes that although fiscal deficits worsened in 1998-2001 in some countries because of terms of trade deterioration and unfavorable movements in the business cycle, convergence stalled even when corrected for these factors.",
    "Concludes that meeting fiscal deficit targets in the future will be facilitated by a favorable external environment but will, in any case, require a higher revenue ratio and downward pressure on government wages as shares of GDP.",
    "Proposes a measure of the structural deficit that corrects for movements of both the business cycle and terms of trade.",
    "Emphasis on adjusting fiscal deficit measures to account for:",
    "Fiscal deficit worsened in 1998-2001 in some WAEMU countries, partly attributable to:",
    "Even after correcting deficits for business cycle and terms of trade movements, fiscal convergence stalled.",
    "Future success in meeting fiscal deficit targets will be aided by a favorable external environment.",
    "Regardless of external conditions, meeting deficit targets requires:",
    "**Experience with Budgetary Convergence in the WAEMU - WP/02/108**"
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