Kenya Can Move the Economy Forward and Strengthen Public Trust, Says Clarke

(Credit: Melissa Lyttle/IMF Photo)

During his visit to Kenya, the IMF's Deputy Managing Director Nigel Clarke encouraged further efforts to create fiscal space for priority investment and social spending. In a statement, Clarke also said it was critical to spend public revenue wisely. How? "By strengthening public financial management, governance, transparency, and anti-corruption frameworks.”

“The Kenyan authorities face a difficult balancing act of fulfilling the aspirations of the Kenyan people by delivering on priority social and developmental needs even as debt servicing obligations consume a large share of government’s revenues,” said Clarke. “In this context, we continue to encourage them to remain engaged with all relevant stakeholders and friends of Kenya on the path forward and effectively communicate to and engage with the people of Kenya on the policy options to strengthen public trust.”

Read the Statement

F&D MAGAZINE

Relentless Reformer: Sri Mulyani Indrawati

(Credit: Grant Ellis/World Bank)

Over the past two decades, Indonesia has undergone a remarkable transformation. The Southeast Asian nation—a sprawling archipelago of 270 million people, stretching 3,300 miles from west to east—has increased its GDP fourfold, to $1.4 trillion. The share of the population living on less than $2.15 a day has fallen tenfold, to under 2 percent.

Sri Mulyani Indrawati played an important part in this transformation as finance minister under three presidents. From the global financial crisis to the COVID pandemic, she steered Indonesia through economic shocks. She fixed the country’s macroeconomic foundations, broadened the tax base, and capped budget-busting subsidies.

On a visit to Washington in September, Indrawati spoke to F&D’s In the Trenches about Southeast Asia’s largest economy and the challenges facing emerging market economies.

Read the Article

While housing markets play a significant role in economies, new research shows houses across 40 countries are less affordable than at any time since the 2008 financial crisis. IMF economist Deniz Igan helped develop the Housing Affordability Index. In this podcast, she says the pandemic triggered an unusual sequence of events that housing markets around the world are still struggling to correct.

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Weekly Roundup

STAFF PAPER

Effects of IMF-Supported Programs on Gender Inequality

Crises often require economic consolidations that may unevenly affect different segments of the population. So, what does it mean for gender inequality? A new IMF staff paper examines over 150 IMF-supported programs (1994-2022) using custom-tailored control groups that match each country’s gender and economic trends. The authors find overwhelming evidence that post-crisis economic contractions, rather than IMF-supported programs, are the primary drivers of observed gender inequality.

STAFF PAPER

Riding Unicorns: Startups and Venture Capital in Japan

The startup ecosystem in Japan has seen gradual growth, supported by the government’s recent "Startup Development Five-Year Plan" and a significant interest from overseas venture capital. A new IMF staff paper lays out the startup financing ecosystem in Japan, with comparison to international peers, and studies potential drivers of startup financing and their relevance for startups’ performance. The results, based on country-level aggregate analysis, underscore the critical role of firm dynamism and entrepreneurship in supporting capital investment and firm valuations.

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