Establishment of an Exogenous Shocks Facility Under the Poverty Reduction and Growth Facility Trust / International Monetary Fund.

Format:

Book

Author/Creator:

International Monetary Fund, author, issuing body.

Series:

Policy Papers ; No.05/031.

Policy Papers ; No.05/031

Language:

English

Subjects (All):

Poverty--Mathematical models.

Poverty.

Physical Description:

1 online resource (10 pages).

Place of Publication:

Washington, D.C. : International Monetary Fund, 2005.

Summary:

At the recent Board discussion on strengthening the Fund's assistance to low-income countries dealing with sudden and exogenous shocks, most Directors supported the establishment of an Exogenous Shocks Facility within the Poverty Reduction and Growth Facility Trust. In an earlier discussion, Directors noted that exogenous shocks could have significant negative impacts on developing countries' growth, macroeconomic stability, debt sustainability, and poverty, and that low-income countries are particularly vulnerable to shocks due to lack of diversification, limited capacity to build up reserves, and prohibitively expensive or unavailable market insurance. The international community can supplement national efforts for reducing vulnerability to shocks. Recent research shows that foreign assistance can be unusually effective in the aftermath of a shock. Such assistance needs to be available quickly, and it needs to be associated with sound adjustment policies and measures to reduce vulnerability to future shocks.

Contents:

I. Introduction II. Basic Structure of the Exogenous Shocks Facility III. Staff Proposals for Modalities A. Qualifying Events B. Other Operational Modalities C. Relationship to the PRS Process IV. Estimated Demand for Shocks Financing V. Financing Arrangements VI. Issues For Discussion.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781498371391

1498371396