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Dear maria, We just published a new blog—please find the full text below. Global Financial Safety Net—A Lifeline for an Uncertain World (image: erhui79/ iStock by Getty Images) By Alina Iancu, Seunghwan Kim, and Alexei Miksjuk When economic crises hit, such as the one caused by the pandemic, countries have a number of financial resources—both internal and external—to draw on. The global financial safety net is a set of institutions and mechanisms that provide insurance against crises and financing to mitigate their impact. This safety net has four main layers: countries’ own international reserves; bilateral swap arrangements whereby central banks exchange currencies to provide liquidity to financial markets; regional financial arrangements by which countries pool resources to leverage financing in a crisis; and the IMF. As our chart of the week shows, this global financial safety net has expanded significantly in the past decade and its sources have become more diverse. The chart, drawn from the recent IMF Special Series on COVID-19, shows that since the global financial crisis, the total stock of international reserve holdings more than doubled, reaching about USD 14 trillion by end-2020.  Other layers of the safety net increased about tenfold, to about USD 4 trillion. This increase reflects the expansion of the bilateral swap arrangements during the global financial crisis and the recent pandemic, as well as the establishment of new regional financial arrangements, especially in Europe (e.g., the European Stability Mechanism) and in South East Asia (the Chiang Mai Initiative Multilateralization). The IMF also more than doubled available resources in the aftermath of the global financial crisis. This reinforced insurance helped effectively cushion the shock during the first year of the COVID-19 crisis. The increased bilateral swap arrangements, primarily the US Federal Reserve swaps, provided prompt liquidity support, helping to stabilize the global financial markets and capital flows to emerging market economies. Financing from the regional financing arrangements remained low, as demand was contained by supportive macroeconomic policies in advanced economies, and timely financing from other global financial safety net sources. For its part, the IMF remained the linchpin of the safety net, approving debt service relief and providing financial assistance to an unprecedented number of countries, including low-income and emerging market economies that did not benefit from bilateral or regional arrangements. As countries continue to grapple with the fallout from the pandemic and face increased risks of tighter financial conditions, the continued use of the global financial safety net will likely be needed until the crisis is over. *****

Glenn Gottselig Managing Editor IMF Blog ggottselig@IMF.org   Thank you again for your interest in IMF Blog. Read more of our latest content here. Take good care!

Forty years of data provides some insights into the key considerations for a domestic debt restructuring.

Dear maria, We just published a new blog. Sovereign Domestic Debt Restructuring: Handle with Care (Photo: BCRACKER BY Getty Images) By Peter Breuer, Anna Ilyina, and Hoang Pham Restructuring domestic debt is like surgery: You only do it if you must, and you avoid it if it might do more harm than good. With rising debt vulnerabilities and growing stocks of sovereign domestic debt in emerging and developing economies, the questions of when and how to restructure such debt are now more acute than ever.  Over the past two decades, emerging market developing economies have seen their share of sovereign domestic debt—let’s call it “domestic debt” for short—increase from 31 to 46 percent of their total sovereign debt. Thus, restructuring of domestic debt is likely to play a role in the resolution of future debt crises. A new IMF paper draws on the past 40 years of sovereign debt restructurings to offer some insights into the key considerations for a domestic debt restructuring that restores debt sustainability while minimizing the disruption caused. Click here to continue reading Glenn Gottselig Managing Editor IMF Blog ggottselig@IMF.org

Information on social mobility in African countries was once relatively scarce, but a new data set paints a continent-wide picture.

(Photo: IMF) Dear maria, The ability to track how people in sub-Saharan Africa have been able to progress educationally and economically from the previous generation has been limited, until now. In a new article, the IMF's Rasmane Ouedraogo and Nicolas Syrichas explain how in a study of of 72 million individuals since 1920, they were able to circumvent the lack of income data across generations in Africa by using the educational and occupational attainment of parents and their children to construct intergenerational mobility indicators.  Read the full article below or on the web.  Have a print copy of F&D Magazine delivered to your home or office. COMING SOON: The next issue of F&D Magazine will be published on December 2. The issue will focus on various ways to safeguard global health and well-being. The pandemic has forced a rethink of international cooperation, public health systems, what defines a healthy society, and whether we need to explore new ways to measure prosperity. Our authors will help bridge the undeniable connection between human and economic health.  Ever since the Transatlantic slave trade ramped up in the 17th century, the African continent has had a tough time economically and socially. But around the mid-1990s, the momentum shifted. Over the past two decades, the size of Africa’s economy, as a whole, increased by 50 percent in contrast to a world average of 23 percent. A natural question is how evenly—or unevenly—the benefits of this economic progress have been shared among the population. The answers are critical: recent history has shown that sustainable economic prosperity does not necessarily translate into significant social improvement. According to the World Bank (2020), the poverty rate in sub-Saharan Africa has not fallen fast enough to keep up with population growth in the region, and 433 million Africans were estimated to be living in extreme poverty in 2018, up from 284 million in 1990. A general indicator of a fair and fluid society is intergenerational social mobility—the likelihood that children will achieve a higher standard of living than the household in which they were nurtured. Intergenerational social mobility is often measured in terms of the joint lifetime earnings of the parents and offspring adjusted for the inflation rate, using administrative tax record data. Labor earnings data for both the parents and their offspring are widely available for many developed economies, but are scarce for Africa. In our new study of 72 million individuals since 1920, we circumvent the lack of income data across generations in Africa by using the educational and occupational attainment of parents and their children to construct intergenerational mobility indicators. We measure intergenerational mobility in educational and occupational attainment by linking parents to children in the same household in a set of 28 African countries. Higher education and occupation status is associated with a higher living standard and is comparable across countries. Economic opportunities Our key finding is that economic opportunities measured by literacy rates have improved over time. In Africa, children of both sexes born in the mid-1990s to illiterate parents had a 60 percent likelihood of completing primary school. In comparison, those born in the mid-1940s had only a 20 percent probability. On the other hand, four out of five children whose parents work in one of the traditional low-skill agricultural sectors are likely to follow in their parents’ footsteps across gender and all birth cohorts. This finding suggests that increased education has not translated into better jobs for everyone, which underscores the general African youth unemployment problem. Several factors could explain this divergence, including market and policy failures, the absence of labor opportunities, and school quality. Moreover, there is staggering heterogeneity in African countries’ rates of economic opportunity. In Botswana and South Africa, 75 percent of children achieve higher literacy status than their uneducated parents, whereas that figure is less than 20 percent in Ethiopia and Mozambique. In occupational status, half of the children born in Botswana and South Africa surpass that of their farmer parents. In Ethiopia and Mozambique, only a handful of them end up in a higher-status profession. These findings reflect the persistence of poverty and lack of opportunity in many African countries. Disaggregating the data by gender and region shows that children born in rural areas have a significantly lower probability of upward mobility in education and occupation status than their peers born in urban areas. In addition, in many African countries, there is a conspicuous gender wedge that appears to narrow over generations. Looking at the interplay between education and occupation, the joint upward mobility in education and occupation has declined over younger cohorts, suggesting that the occupational reward, or premium, from better education is declining over time. This disconnect between educational and occupational mobility in recent decades could be linked to two factors: more graduates but weak job creation and a mismatch between labor market needs and graduates’ skills. More surprisingly, the probability that a child with upgraded educational attainment will experience downward mobility in occupation has increased over time. To get further insight into the factors associated with social mobility, we examined several possible drivers of intergenerational mobility in education and occupation. Our research shows that higher upward intergenerational mobility is positively associated with access to electricity and water. Other mechanisms—such as higher fertility, rural residence, and child marriage—are negatively associated with upward mobility. Differences in mobility across countries could also reflect disparities in public education spending, institutions’ quality, and social protection coverage. Other factors, such as conflicts and natural resource endowment are negatively associated with upward educational and occupational mobility. Main lessons Our findings yield three broad lessons overall. First, the place children in Africa are born significantly affects their future socioeconomic status. African regions differ primarily because of differences in the labor market and secondarily in their educational opportunities for children. In this regard, targeted policies to tackle the rural-urban divide, narrow the gender gap, and shrink regional inequalities are essential. Sustaining education spending and investing in human and physical capital will be critical to bridge the existing gaps and create and share opportunities with all citizens. Second, opportunities in education and occupation are persistently low for children in households without access to basic infrastructure—electricity and water. In many African countries, children still drop out of school to handle routine household needs such as fetching water from the river. This suggests that investment in basic infrastructure could enhance education and employment and help lift households out of poverty. Third, good governance and social policies could create educational and employment opportunities for children. African countries should, therefore, promote good governance and enact policies aiming to extend social protection coverage and reduce the risk of violent conflict—critical predictors of social mobility on the continent. The current difficult macroeconomic conditions, sizable job loss, and closures of schools following the outbreak of the COVID-19 pandemic could worsen social mobility in Africa and widen existing gaps. Reference: World Bank. 2020. “Poverty and Shared Prosperity 2020: Reversals of Fortune.” Washington, DC.  Adam Behsudi Senior Editor F&D Magazine abehsudi@IMF.org   P.S. See the full lineup of articles from our latest issue of Finance & Development.

COUNCIL OF THE EUROPEAN UNION:Speech by President Charles Michel at the Eastern Partnership Civil Society Assembly..

 

Tuesday 30 November 2021

● European Council   30/11/2021 12:29 | Speech | Speech by President Charles Michel at the Eastern Partnership Civil Society Assembly   It’s a pleasure to address this Eastern Partnership Civil Society Assembly today. Your meeting takes place two weeks ahead of our Eastern Partnership Summit in Brussels - an opportunity for political leaders and governments to boost reform efforts and drive forward the recovery and resilience of our societies. When I say ‘society’, I mean all of you working in ‘civil society’. You - representing hundreds of civil society organisations - will devote the coming days to scrutinising the proposals for the post-2020 agenda of our Eastern Partnership. And your commitment is crucial to delivering on the necessary and expected progress in many critical areas. Political cooperation, economic recovery, and, of course, democratic reforms. This must generate concrete benefits for all citizens in all our countries and in our Partnership as a whole. Neighbours are always important. If we want peace, stability and prosperity, we must work with our neighbours. History has taught us this lesson. And our Eastern Partnership has been a testament to this simple truth for over 12 years. We have advanced our partnership in spite of challenges ranging from economic crises to armed conflicts and the COVID pandemic. And important progress has been made - improving electoral frameworks, reforming administrations, fostering the independence of the judiciary, and prosecuting corruption. But we all know, challenges remain. In tackling those, we insist and we persist. Strengthening democracy, fighting corruption, defending the rule of law, guaranteeing a free media, and countering disinformation - this is an uphill battle, but an essential and a worthy battle. It’s all our responsibility. And you - civil society - have played, and are playing, a crucial role. You must continue to step forward and make your voices heard. Today, Belarus is of particular concern, where so many people suffer from oppression and where civil society is under enormous pressure. The EU has stood steadfast, united in our support for the Belarusian population and their desire for democratic change. We have provided substantial financial support to civil society, journalists, independent media and we are imposing sanctions on those responsible for falsifying elections, spreading violence and repression. Most recently, the Belarus regime has also taken steps to instrumentalise the most vulnerable in every society - migrants - under horrific conditions. We are responding firmly. The EU’s fifth package of sanctions is about to be agreed and we are considering further action. Our message to the Belarusian people is clear: we will not let you down. Our comprehensive economic support for a democratic Belarus - up to three billion euro - is our strong European commitment to support a better future and the democratic choice of the Belarusian people. Prolonged conflicts in the region remain a fundamental challenge. They require renewed efforts in line with the principles and norms of international law. The EU stands ready to play its role to help prevent and resolve conflict. This includes building confidence and contributing to lasting and comprehensive settlements - including support for post-conflict rehabilitation measures. The relations between Armenia and Azerbaijan show the fragility of the situation. I am totally convinced that only political dialogue can lead to a sustainable settlement. It will also require civil society in Armenia and Azerbaijan to come together, to build bridges and to help in reconciliation efforts. In Georgia, we need to follow through with the identified reforms with coherence and credibility and in respect of fundamental values and in support of credible institutions. If we lose ground in these key areas, we risk losing it elsewhere, too. Our Eastern Partnership must live up to the unique challenges of our time - most of all climate change. And we need to tackle these challenges together - including through deeper sectoral and regional cooperation. The EU will support all initiatives to create more synergies and cooperation between partners - including the three associated partners; Georgia, the Republic of Moldova, and Ukraine. This will help address the common challenges and pave the way for sustainable growth and political stability, using all existing instruments to support their societies, as they pursue their European aspirations, and foster coordination between the partners and Brussels. This also includes the respective association agendas with the European Union, and this should lead to the sharing of best practices on reforms and on a broader agenda for the future. Civil society has a critical role in holding governments accountable and clearing the way towards this European future. The new proposed agenda for our post-2020 Eastern Partnership focuses on recovery, resilience and reform. It is underpinned by an ambitious economic and investment plan, mobilising over two billion euro to support the post-pandemic recovery. Our fundamental values, human rights, rule of law and democratic accountability, gender equality, and support to youth will remain cornerstones of our future partnership. EU support will remain conditional on these fundamental principles. And of course I would like to thank you, the Eastern Partnership Civil Society Forum and all of you for your valuable contributions to this renewed agenda. Civil society is a crucial link between governments and citizens. Civil society - all of you in this room - promotes with deep commitment citizens’ rights and aspirations for our societies, respecting human rights and the rule of law, fighting corruption, overcoming discrimination, and celebrating the freedom of expression and assembly. These values define who we are. They are the best investment for a prosperous, just, and sustainable future. The Eastern Partnership Civil Society Forum will continue to be a vital partner on this path and I count on your commitment, in the interests of our citizens and in the interests of our societies. And I look forward to your recommendations from this Assembly in the run-up to our Summit. Thank you.

Tuesday 30 November 2021

● Council of the EU   30/11/2021 15:32 | Press release | Sport: Council resolution stresses key features of values-based sport model   Today, the Council approved a resolution on the key features of a European Sport Model. The key features include a pyramidal structure, organised sport, structured on a national basis, and by one federation per sport, solidarity with lower-tier sport levels and the promotion of open competitions. "This resolution is the first agreement on key features of a European model of sport. This is a very important achievement and step forward not just for the Slovenian presidency but also for sport as such. We all know that on the one hand sport enthuses people and can bring them together, but on the other it is also an economic force and important for citizens health and wellbeing. Moreover, the success of sport in Europe is based on certain key features of a European Sport Model of which open competitions, freedom of association and a grassroots approach and solidarity are some of its main components." Simona Kustec, Slovenian minister of Education, Science and Sport Member states should promote values in sport and sports organisations and recognise the contribution of volunteers, grassroots sport clubs, families and local communities in the field of sport. With this resolution, ministers also pave the way for continuing discussions between member states and sport stakeholders on the key features of a European Sport Model. The resolution also calls on the sport movement to promote solidarity among sports organisations and thus contribute to the recovery of the sport sector from the COVID-19 pandemic. Ministers furthermore ask the sport movement to ensure that the organisation of sport competitions comply with the principle of openness, give priority to sporting merit and respect fundamental and human rights.

COUNCIL OF THE EU:Main results - Education, Youth, Culture and Sport Council, 29-30 November 2021

 

Meetings Tuesday 30 November 2021   ● Council of the EU   30/11/2021 19:44 | MEETING | Main results - Education, Youth, Culture and Sport Council, 29-30 November 2021   EU ministers responsible for education, youth, culture, audiovisual and sport met in Brussels to discuss about blended learning approaches, digital education and skills, civic spaces for meaningful youth participation, availability and competitiveness of European audiovisual and media content and a European sport model.

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Council of the EU
Education, Youth, Culture and Sport Council, 29-30 November 2021

Main results
Culture, Audiovisual and Sport, 30 November 2021
Increasing the availability and competitiveness of European audiovisual and media content

The European audiovisual and media sectors have suffered greatly during the COVID-19 pandemic. Cinemas have seen box office revenues drop by between 70% and 80% in 2020. At the same time, the demand for online subscriptions of video-on-demand services has soared.

As the availability of European audiovisual and media content is fundamental for the health of the European media sector, the Council has approved conclusions to provide guidelines on how to guarantee that European content becomes more widely available. Proposed actions include encouraging the greater availability of original content in different language versions, promoting efficient marketing tools and film audience strategies, improving and facilitating the discoverability of creative content online in all EU languages and encouraging an increase in the volume of European audiovisual works in on-demand catalogues.



Every day, EU citizens enjoy watching excellent European series, movies and TV programmes. Still, the pandemic and other trends weigh heavily on the European audiovisual and media sector. That is why we have agreed on measures to boost the sector and make European content from different countries and in different languages more widely available.Vasko Simoniti, Slovenian Minister for Culture
Council conclusions on increasing the availability and competitiveness of European audiovisual and media content
High quality architecture and New European Bauhaus

Following the State of the Union speech by President Ursula von der Leyen in September, in which she called the New European Bauhaus initiative (NEB) the very “soul of the European Green Deal”, the Commission has published a communication on the New European Bauhaus. The NEB represents the EU’s ambition to create beautiful, sustainable, and inclusive places, products and ways of living. The NEB promotes a new lifestyle where sustainability matches style, thus accelerating the green transition in various sectors of our economy such as construction, furniture, fashion and in our societies as well as other areas of our daily life.

In its conclusions adopted today, the Council calls on various policy makers – at both local and EU level – to mainstream the NEB and the circular economy principles and approaches in the national socio-economic and territorial development strategies and to facilitate synergies between relevant policy areas and other processes such as the Conference on the Future of Europe.
Council conclusions on on culture, high-quality architecture and built environment as key elements of the New European Bauhaus initiative
European Sport Model

The Council has approved a resolution on the key features of a European Sport Model. These features include a pyramidal structure, organised sport within national structures and with one federation per sport, solidarity with lower-tier sport levels and the promotion of open competitions. The Council is inviting member states to promote values in sport and sport organisations and is asking the sport movement to ensure that the organisation of sports competitions complies with the principle of openness, gives priority to sporting merit and respects fundamental and human rights.
Sport: Council resolution stresses key features of values-based sport model (press release, 30 November 2021)
Resolution of the Council and of the representatives of the Governments of the Member States meeting within the Council on the key features of a European Sport Model

In their sport session, ministers also approved conclusions on lifelong physical activity and exchanged views on athletes’ dual careers.
Conclusions of the Council and of the representatives of the Governments of the Member States meeting within the Council on lifelong physical activity
Other business

The Finnish delegation reported on the designation of Oulu as European Capital of Culture 2026. The Spanish delegation informed ministers about the drafting of a Green Book on the sustainable management of cultural heritage. Portugal presented ideas on the way forward as regards the status of cultural and creative professionals and actions that can be taken at national level. Italy presented the G20 cultural ministerial and the Rome declaration of G20 ministers of culture. Romania suggested inviting the Commission to present a legislative proposal to make 2023 the European year for resilience through culture.

The Commission reported on the recovery of the culture sector after the COVID-19 pandemic as well as on the CulturEU funding guide and web tool - EU funding opportunities for the cultural and creative sectors 2021-2027.

The EU member states’ representative of the incumbent Trio Presidency in the WADA Foundation Board informed ministers about the Executive Committee and Foundation Board which took place on 24 and 25 November 2021. The presidency informed the Council about the impact of the COVID-19 pandemic on sport.

The French delegation provided information on the work programme on the culture, audiovisual, media and sport policies of the upcoming presidency.
Education and Youth, 29 November
Civic spaces for young people

Civic spaces for young people - environments such as youth centres, associations and youth assemblies that allow for young people’s meaningful participation in society - are under pressure. This is partly due to the COVID-19 pandemic during which online civic spaces have often remained the only viable alternative. Civic spaces are crucial to allow young people to participate in decision-making and to shape policies that affect them. Therefore, youth ministers discussed measures to defend and support civic spaces for young people. Ministers also voiced concerns about the role of digital tools and fora which - although allowing young people to mobilise, raise awareness and share information - also entail risks such as intimidation, online censorship and digital surveillance.



It is a sad reality that civic spaces for young people, environments where they can engage with society, are under pressure. We need to reverse this trend because civic spaces are where young people can exercise their rights of freedom of expression, association and assembly. That’s why we agreed today to support organisations in the field of youth and reach out more to young people when devising policies.Simona Kustec, Slovenian Minister for Education, Science and Sport

The Council also approved conclusions on safeguarding and creating civic spaces for young people that facilitate meaningful youth participation. The Council is inviting member states to preserve and expand civic spaces for young people and to put measures in place to ensure that young people from disadvantaged backgrounds and with fewer opportunities, in particular those from remote and rural areas and those with disabilities, can access and participate in these spaces. Member states and the Commission are also invited to maintain structural funding for youth organisations.
Conclusions of the Council on safeguarding and creating civic spaces for young people that facilitate meaningful youth participation
Blended learning

The Council adopted a recommendation on blended learning approaches to achieve the goal of high-quality and inclusive primary and secondary education. During the pandemic, home schooling and distance learning became a new reality for many pupils, teachers and parents. While the teaching community has shown remarkable innovative skills in the adoption of new approaches, a number of challenges, such as insufficient connectivity and digital infrastructure, have also become apparent. Based on learnings from the crisis, the recommendation puts forward both short-term measures as a direct response to the crisis as well as long-term actions to advance blended learning approaches.
Drawing lessons from the pandemic, Council adopts recommendation on blended learning (press release, 29 November 2021)
Council Recommendation on blended learning approaches for high-quality and inclusive primary and secondary education

Ministers also approved resolutions on a new European agenda for adult learning 2021-2030 and on the governance structure of the strategic framework for European cooperation in education and training. Education ministers held a policy debate on the structured dialogue on digital education and skills (launched by the Commission in October 2021).
Council Resolution on a new European agenda for adult learning 2021-2030

In their youth session, ministers approved a resolution to ensure that the outcomes of the 8th cycle of the EU Youth Dialogue are recognised and followed-up by relevant stakeholders. As regards the EU Youth Strategy (2019-2021) they approved conclusions on its implementation. Looking ahead, they approved a resolution on the EU Youth Strategy Work Plan 2022-2024.
Resolution of the Council of the European Union and the representatives of the Governments of the Member States meeting within the Council on the EU Youth Strategy Work Plan 2022-2024
Resolution of the Council and of the representatives of the Governments of the Member States meeting within the Council on the Outcomes of the 8th Cycle of the EU Youth Dialogue
Council conclusions on the implementation of the EU Youth Strategy (2019-2021)
Other business

The presidency reported on the impact of the COVID-19 pandemic on education and training and on a joint statement by the ministers of education on the situation regarding women’s right to education in Afghanistan. Belgium and Lithuania, on behalf of the Benelux countries and Baltic States, informed ministers on the Treaty on the automatic mutual recognition of higher education qualifications.

The presidency also provided information on the impact of the COVID-19 pandemic on youth and briefed ministers on the outcome of the discussion at the Youth Informal Forum breakfast meeting.

The French delegation reported on the upcoming presidency’s work programme on education and youth.



The Council also adopted without discussion the items that figure in the list of non-legislative A items.


Meeting information


Meeting n°3831
Brussels
29 November 2021
10:00
Preparatory documents
Provisional agenda
List of A items, non-legislative activities
Background brief
Outcome documents
List of participants
List of participants