## Topic 5: Enhancing Inclusion

## Source details

**Canonical URL:** [Topic 5: Enhancing Inclusion](https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/enhancing-inclusion)

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---

### Context and motivation
- Despite strong growth over the past two decades, income inequality remains high in many low-income countries (LICs).
- The ongoing COVID-19 crisis is disproportionally affecting people in already vulnerable situations and has spurred a renewed focus on distributional issues.
- High levels of inequality can impair the sustainability of growth and macroeconomic stability, limiting countries’ ability to achieve smooth recovery and reach the Sustainable Development Goals.
- Reducing gender gaps can have important economic benefits: gender equality can boost productivity, enhance economic resilience, and reduce income inequality.

### FCDO-IMF partnership — phases and focus
- Phase 1 (March 2012 to March 2015)
  - Aim: build distributional analysis into macroeconomic models and examine the link between fiscal policy and income inequality.
  - Achievement example: a high-level conference on Fiscal Policy and Income Inequality in Sub-Saharan Africa.
  - Outputs recorded for year 1, year 2, and year 3 of the FCDO-IMF partnership.
- Phase 2 (April 2015 to March 2017)
  - Aim: build and apply tools to describe and predict distributional consequences of macroeconomic policies, incorporating distributional factors; place gender more squarely in IMF policy-oriented research.
  - Key achievement: development of the macroeconomic and distributional analysis model (MDAM), a framework to evaluate the distributional impacts of various macroeconomic policies, applied to several countries.
  - Additional outputs: a paper on Macro-Structural Policies and Income Inequality in Low-income Developing Countries; a series of papers on gender budgeting for Asia, Caribbean and Pacific Islands, Europe, Middle East and Central Asia, Sub-Saharan Africa, and Western Hemisphere; conferences on Macroeconomic Policy and Income Inequality and on Gender and Macroeconomics.
  - Outputs recorded for year 4 and year 5 of the FCDO-IMF partnership.
- Phase 3 (April 2017 to March 2020)
  - Focus: inequality and gender and their intersection; expanded training courses and dissemination.
  - Achievements:
    - Applications of the inequality toolkit on Benin and Dominica.
    - Applications of the gender budgeting toolkit on Nigeria, Sri Lanka, and Rwanda.
    - An SDN on Women in the Labor Force: The Role of Fiscal Policies.
    - A paper on the distributional effects of capital account liberalization.
    - High-level conferences on gender equality and inclusive growth.
  - Outputs recorded for year 6, year 7, and year 8 of the FCDO-IMF partnership.
- Phase 4 (April 2020 to March 2025)
  - Focus areas:
    - Gender equality and sustainable growth, including how the COVID-19 pandemic has affected gender inequality and the channels and trade-offs between different policies to address country-specific gender gaps.
    - Quantifying short-run and long-run welfare implications of revenue mobilizations using different tax instruments.
  - Outputs to be recorded for years 9–13 of the FCDO-IMF partnership.

### Tools, methods, and dissemination
- Development and application of analytic tools to assess distributional impacts:
  - Macroeconomic and Distributional Analysis Model (MDAM).
  - Inequality toolkit.
  - Gender budgeting toolkit.
- Production of thematic papers and SDNs linking macro-structural policies, fiscal policy, capital account liberalization, and gender to distributional outcomes.
- Delivery of conferences and training courses to foster research discussions and disseminate findings on macroeconomic policy, income inequality, and gender.

### Key implications for policy research and practice
- Integrating distributional analysis into macroeconomic modeling is central to understanding the equity implications of fiscal, structural, and external policies in LICs.
- Gender-focused analysis and gender budgeting are important complements to distributional macroeconomic frameworks for promoting inclusive growth.
- Policy evaluation should consider both short-run and long-run welfare implications, particularly when assessing revenue mobilization via different tax instruments and post-COVID recovery strategies.

---

## Content in this bundle

- **June 2019**
  - [June 2019 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/dfid-ar-june2019.pdf.md){rel="alternate" type="text/markdown"}
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- **June 2020**
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- **June 2021**
  - [June 2021 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2021.pdf.md){rel="alternate" type="text/markdown"}
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- **June 2022**
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  - [June 2022 (PDF)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2022.pdf){rel="external" type="application/pdf"}
- **June 2023**
  - [June 2023 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2023.pdf.md){rel="alternate" type="text/markdown"}
  - [June 2023 (PDF)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2023.pdf){rel="external" type="application/pdf"}
- **June 2024**
  - [June 2024 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2024.pdf.md){rel="alternate" type="text/markdown"}
  - [June 2024 (PDF)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2024.pdf){rel="external" type="application/pdf"}
- **June 2025**
  - [June 2025 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2025.pdf.md){rel="alternate" type="text/markdown"}
  - [June 2025 (PDF)](/-/media/files/topics/lics/macro-research-for-development/annual-reports/fcdo-ar-june2025.pdf){rel="external" type="application/pdf"}
- **Call to Donors to Strengthen IMF Research Capacity for Low-Income Countries**
  - [Call to Donors to Strengthen IMF Research Capacity for Low-Income Countries (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/call-to-donors-to-strengthen-imf-research-capacity-for-low-income-countries-nov-2025.pdf.md){rel="alternate" type="text/markdown"}
  - [Call to Donors to Strengthen IMF Research Capacity for Low-Income Countries (PDF)](/-/media/files/topics/lics/macro-research-for-development/call-to-donors-to-strengthen-imf-research-capacity-for-low-income-countries-nov-2025.pdf){rel="external" type="application/pdf"}
- **Macroeconomic Research in Low Income Countries — June 2013**
  - [Macroeconomic Research in Low Income Countries — June 2013 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/documents/june2013.pdf.md){rel="alternate" type="text/markdown"}
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- **Macroeconomic Research in Low Income Countries — June 2014**
  - [Macroeconomic Research in Low Income Countries — June 2014 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/documents/june2014.pdf.md){rel="alternate" type="text/markdown"}
  - [Macroeconomic Research in Low Income Countries — June 2014 (PDF)](/-/media/files/topics/lics/macro-research-for-development/documents/june2014.pdf){rel="external" type="application/pdf"}
- **Macroeconomic Research in Low‑Income Countries — Third Year Annual Report to DFID**
  - [Macroeconomic Research in Low‑Income Countries — Third Year Annual Report to DFID (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/documents/june2015.pdf.md){rel="alternate" type="text/markdown"}
  - [Macroeconomic Research in Low‑Income Countries — Third Year Annual Report to DFID (PDF)](/-/media/files/topics/lics/macro-research-for-development/documents/june2015.pdf){rel="external" type="application/pdf"}
- **Annual Review of the Macroeconomic Research in Low Income Countries project**
  - [Annual Review of the Macroeconomic Research in Low Income Countries project (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/documents/june2016.pdf.md){rel="alternate" type="text/markdown"}
  - [Annual Review of the Macroeconomic Research in Low Income Countries project (PDF)](/-/media/files/topics/lics/macro-research-for-development/documents/june2016.pdf){rel="external" type="application/pdf"}
- **June2017**
  - [June2017 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/documents/june2017.pdf.md){rel="alternate" type="text/markdown"}
  - [June2017 (PDF)](/-/media/files/topics/lics/macro-research-for-development/documents/june2017.pdf){rel="external" type="application/pdf"}
- **MRLIC programme review — By March 2018**
  - [MRLIC programme review — By March 2018 (Markdown version)](/-/media/files/topics/lics/macro-research-for-development/documents/june2018.pdf.md){rel="alternate" type="text/markdown"}
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- [List of Outputs: Year 1 to 13 (XLSX)](/-/media/files/topics/lics/macro-research-for-development/listofoutputs.xlsx){rel="external" type="application/vnd.openxmlformats-officedocument.spreadsheetml.sheet"}
- **Dec 2018, Vol.6**
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- **Dec 2019, Vol.7**
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- **Dec 2020, Vol.8**
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- **Dec 2021, Vol.9**
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- **Jun 2018, Vol.6**
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- **Mar 2018, Vol.6**
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- **Devarajan–O'Connell final report on the MRLIC project**
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---

## References

- [Modelling policy choices](https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/modeling-policy-choices)
- [Understanding macro-financial linkages](https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/understanding-macro-financial-linkages)
- [Building resilience](https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/building-resilience)
- [Promoting structural change and institutional development](https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/promoting-structural-change-institutional-development)
- [Advances Made in Five Key Areas Through a FCDO-IMF Collaboration](https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2021/03/24/Macroeconomic-Research-in-Low-income-Countries-Advances-Made-in-Five-Key-Areas-Through-a-50010)
- [Macro-Structural Policies and Income Inequality in Low-income Developing Countries.](https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2017/01/26/Macro-Structural-Policies-and-Income-Inequality-in-Low-Income-Developing-Countries-44526)
- [Asia,](https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Asia-A-Survey-of-Gender-Budgeting-Efforts-44143)
- [Caribbean and Pacific Islands,](https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Caribbean-and-Pacific-Islands-A-Survey-of-Gender-Budgeting-Efforts-44147)
- [Europe,](https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Europe-A-Survey-of-Gender-Budgeting-Efforts-44148)
- [Middle East and Central Asia,](https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Middle-East-and-Central-Asia-A-Survey-of-Gender-Budgeting-Efforts-44144)
- [Sub-Saharan Africa](https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Sub-Saharan-Africa-A-Survey-of-Gender-Budgeting-Efforts-44145)
- [Western Hemisphere.](https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Western-Hemisphere-A-Survey-of-Gender-Budgeting-Efforts-44146)
- [Gender and Macroeconomics](https://www.imf.org/en/News/Events/Gender-and-Macroeconomics)
- [Benin](https://www.imf.org/en/Publications/CR/Issues/2018/01/05/Benin-2017-Article-IV-Consultation-and-First-Review-Under-the-Extended-Credit-Facility-45533)
- [Dominica](https://www.imf.org/en/Publications/CR/Issues/2017/12/20/Dominica-2017-Article-IV-Consultation-Press-Release-and-Staff-Report-45498)
- [Nigeria,](https://www.imf.org/en/Publications/CR/Issues/2018/03/07/Nigeria-2018-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-45699)
- [Sri Lanka](https://www.imf.org/en/News/Articles/2018/03/09/mcs03092018-imf-staff-concludes-the-2018-article-iv-mission-with-sri-lanka)
- [Rwanda](https://www.imf.org/en/Publications/CR/Issues/2017/07/13/Rwanda-Selected-Issues-45080)
- [Women in the Labor Force: The Role of Fiscal Policies.](https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2020/02/11/Women-in-the-Labor-Force-The-Role-of-Fiscal-Policies-46237)
- [gender equality](https://www.imf.org/en/News/Seminars/Conferences/2017/10/30/peer-learning-conference-on-gender-equality)
- [inclusive growth.](https://meetings.imf.org/en/AMSM/2017/Annual/Schedule/2017/10/12/towards-2030-trends-opportunities-challenges-and-policies-for-inclusive-growth-84)

_Source: https://www.imf.org/en/topics/low-income-countries/macro-research-for-development/enhancing-inclusion_