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Korea's Rapid Aging Doesn’t Have to Be Economic Destiny

April 3, 2025
Boosting AI adoption, increasing labor participation, and allocating resources more efficiently can help offset the economic drag from an aging population

Japan: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Japan

April 2, 2025
After three decades of near-zero inflation, signs are growing that Japan’s economy is reaching a new equilibrium with inflation sustained at the Bank of Japan’s 2 percent headline inflation target. But Japan continues to face challenges, including from its aging population and high public debt.

Improving Education Quality: The Returns to Teacher Training In Madagascar, Republic of Madagascar

April 1, 2025
This paper highlights the role of teacher training in improving educational outcomes in Madagascar. With a low and stagnating Human Capital Index of 0.39 and high learning poverty rates, economic growth is hindered by an inadequately skilled workforce. This paper finds that doubling the share of qualified primary school teachers, from the current 15 to 30 percent, would allow Madagascar to harness its demographic dividend, raising per capita real GDP growth by around 2.5 to 3.1 percentage points in Madagascar.

The Electricity Sector and Jirama: Republic of Madagascar

April 1, 2025
Madagascar faces significant challenges in electricity access, with only 36 percent of the population connected. The state-owned utility, JIRAMA, struggles with inefficient production, high transmission and distribution losses, and tariffs below recovery costs. These issues create a substantial fiscal burden on the government, hindering social investment and economic growth. The situation negatively impacts business productivity, making the urgent implementation of JIRAMA's recovery plan essential. This plan should aim to enhance efficiency, reduce losses, and shift towards renewable energy, requiring robust support from the government to ensure sustainable development and improved living conditions for the population.

Rice Production in Madagascar: Challenges to Self-Sufficiency

April 1, 2025
The Malagasy government aims for self-sufficiency in rice production by 2027, targeting 6 million tons in 2024 and 11 million tons by 2030. Despite recent production increases, challenges such as competition from cheaper imports, low productivity, and climate change persist. This paper analyzes the impact of import competition on local markets, utilizing historical data on tariffs and VAT. It assesses potential rice output under various scenarios and discusses strategies for enhancing productivity sustainably. Findings indicate significant room for improvement in rice yields, highlighting the need for targeted supply-side policies to bolster local production without adversely affecting prices.

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