IMF weekend read

. GREENER, SMARTER, FAIRER "One hundred and seventy countries are going to finish this year with a smaller economy than at the start of the year, and we already project that there will be more debt, bigger deficits, and more unemployment," said Managing Director Kristalina Georgieva this week to 225,000 live participants of the Great Reset Dialogue hosted by the World Economic Forum. "And there is a very high risk of more inequality and more poverty. Unless we act." Read her remarks, which focus on how we can build a greener, smarter, and fairer world coming out of the crisis. In pursuit of a greener future, we must better understand the connection between climate change and the financial system. Case in point: the IMF’s latest Global Financial Stability Report examines the impact of climate change physical risk (loss of life and property as well as disruptions to economic activity) on financial stability, and finds that equity investors might not be pricing these risks adequately. In a new blog, the IMF's Felix Suntheim and Jérôme Vandenbussche dig into why. It's also important to note that in the June 2020 Sub-Saharan Africa Regional Economic Outlook, published yesterday, we show that climate change is increasing food insecurity. More broadly, adapting to climate change will cost sub-Saharan Africa US$30 billion to US$50 billion per year for the next ten years. But in a new blog, the IMF's Pritha Mitra and Seung Mo Choi say the cost of not acting is far greater. Prefer a podcast? Listen here (14 min). We've been thinking about the impact of a warmer world for some time, and since today is World Environment Day, I wanted to point you to a recent roundup of our climate change research, and a recent issue of Finance & Development magazine focused on the economics of climate change. THE GLOBAL ECONOMY For an in-depth look at the state of the global economy today and how the IMF is continuing to respond to the pandemic, I encourage you to watch Managing Director Georgieva's recent video interview with the Washington Post's David Ignatius. The discussion focused on inequality, debt relief and suspension, reopening and much more. Read the full transcript here. If you're interested in getting even further in the weeds, carve out some time to watch our Chief Economist Gita Gopinath discuss the Great Lockdown in great detail—with a slew of charts and other visuals to bring this story to life. You can also download her slides (start from page 16). Speaking of the Great Lockdown, what about countries that never closed? The IMF's Sweden team recently explained that the merits of Sweden’s strategy to contain COVID-19—which is based more on recommendations and social responsibility than legal obligations­­—are increasingly attracting attention, both from a health and an economic perspective. EMERGING MARKETS IN CRISIS "Economic activity in emerging markets has decelerated at a pace unseen in at least 50 years as the impact of the COVID-19 pandemic ravages the global economy," writes the IMF's Martin Mühleisen, Vladimir Klyuev, and Sarah Sanya in a new blog about policy responses in emerging markets to the crisis. If you're interested in learning more about how the pandemic is impacting financial conditions in emerging markets, read MD Georgieva's opening remarks to a recent UN event on Financing for Development in the Era of COVID-19. In particular, emerging market economies in the Middle East and Central Asia are confronting one of the most severe and widespread crises ever, with a confluence of fast-moving shocks ranging from the COVID-19 pandemic to financial market volatility, a plunge in oil prices, and domestic lockdown. The IMF currently expects this diverse group of economies—Armenia, Bahrain, Egypt, Georgia, Jordan, Kazakhstan, Lebanon, Morocco, Oman, Pakistan, Saudi Arabia, Tunisia, and the United Arab Emirates—to contract by 1.7 percent in 2020. Read this new op-ed by the IMF's Jihad Azour to explore these issues further. If you would like to zoom in on the Middle East, set aside 1-hour to watch Azour's recent in-depth discussion, hosted by the Brookings Institution, on how COVID-19 and the oil shock will reshape the region. Turning to sub-Saharan Africa, the IMF's Abebe Selassie recently provided a comprehensive tour of IMF emergency assistance to Africa during the COVID-19 pandemic. The two-hour discussion and Q&A, hosted by the World Bank, is chalk-full of insights into how the region is faring during the crisis, the role of debt and debt relief, and much more. FLEXIBLE CREDIT FOR LATIN AMERICA The IMF recently approved Flexible Credit Line (FCL) requests from Chile (US$23.8 billion) and Peru (US$11 billion). Available to countries with a strong economic track record and policy frameworks, the FCL does not carry standard conditions, provides insurance against external shocks, and will help strengthen financial resilience while responding to the pandemic. Chile and Peru join Colombia and Mexico as recipients of this credit line, which altogether total about US$107 billion. POLICIES, POLITICS AND PANDEMICS Our summer 2020 issue of Finance & Development magazine, published this week, focuses on economic policymaking and politics through the lens of COVID-19. Harvard's Jeff Frieden, LSE's Andrés Velasco, and Richard Edelman examine the importance of institutions, identity, and trust, respectively. The IMF's Antoinette Sayeh and Ralph Chami weigh policy solutions as this crisis robs millions of migrants of work opportunities,  slashing remittances, the single most important flow of income for many poor countries. Read the article or listen to the new podcast on this topic. In addition, six prominent thinkers including Daniel Susskind, Ian Bremmer and Sharan Burrow reflect on how the COVID-19 pandemic has changed the world. Interested in the full issue? Read it here. IMF AND COVID-19 We just updated our global policy tracker to help our member countries be more aware of the experiences of others in combating COVID-19, and we are regularly updating our lending tracker, which visualizes the latest emergency financial assistance and debt relief to member countries approved by the IMF’s Executive Board. There are now 66 countries that have been approved to receive emergency financing, totaling about US$23.5 billion. Recent approvals include Bangladesh, Honduras, Sierra Leone, Barbados, Mongolia, and The Bahamas. If you're wondering how the IMF is helping ensure transparent and accountable use of COVID-19 financial assistance, read this fact sheet, and if you're looking for our latest Q&A about the IMF's response to COVID-19, click here.  We are also continually producing a special series of notes—more than 50 to date—by IMF experts to help members address the economic effects of COVID-19 on a range of topics. Stay healthy and see you next week, Rahim Kanani International Monetary Fund rkanani@IMF.org P.S. In non-COVID-19 related news, IMF authors Rasmané Ouedraogo and Amadou N. Sy just published a new working paper that found that an increase in digital adoption in Africa is associated with a reduction in the perception of corruption and an increase in trust in tax officials. However, the paper also shows that the dampening effect of digitalization on corruption is hindered in countries where the government has a pattern of intentionally shutting down the Internet.

UNITED STATES OF AMERICA interesting latest news

FTC letters target more unproven MLM health and earnings claims by Seena Gressin Attorney, Division of Consumer & Business Education, FTC Worried about getting sick with COVID-19 or making ends meet because of a pandemic-related job loss? You may see social media posts offering an answer. Some posts advertise products that they say can prevent or treat COVID-19. Others offer the chance to join a multi-level marketing company (MLM) and make lots of money selling the products to people you know. But, before declaring your worries are over, read on to learn about the problems with these pitches. Read more >

More FTC warnings about scam Coronavirus treatments

by Colleen Tressler
Consumer Education Specialist, FTC
The FTC continues to seek out and warn sellers who peddle so-called Coronavirus treatments with no proof they work. If you see an ad that says a product can prevent, treat, or cure COVID-19, stop. Think to yourself: if there’s actually been a medical breakthrough, am I really going to hear about it for the first time from an ad or sales pitch? The answer is clearly “no.” So train yourself to ignore those types of false ads.
Read more >

Donating in difficult times

by Jennifer Leach
Associate Director, Division of Consumer and Business Education, FTC
These days, there are just so many reasons why people want to do to something to help, to make a difference, to take action. In addition to volunteering or putting their feet to the pavement, lots of people are putting their hands in their wallets to try to make an impact. Once again, though, scammers will be there. As ever, they follow the headlines and pop up wherever there’s money to be made. So, before you make a donation to support any cause, here are a few things to think about and do.
Read more >

FTC again warns multi-level marketers about unproven health and earnings claims By Seena Gressin Dear Multi-Level Marketer. Stop it. Stop all promotions that push your products by claiming they prevent or treat COVID-19. Stop all misleading or unsubstantiated promotions that push your business opportunity by claiming people can earn substantial income peddling your products. The claims are unproven and deceptive. Whether you or your distributors are making them, you’re responsible. That means you could be breaking the law. Read more >

Washington, D.C. Headquarters June 5, 2020 EEOC UNVEILS NEW WEBPAGE ON COMMISSIONER CHARGES AND DIRECTED INVESTIGATIONS Agency Explains Important Processes to Fight Discrimination WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) today posted a new document on its website explaining the role and procedures of two key EEOC processes to combat employment discrimination -- Commissioner charges and directed investigations. Federal law authorizes any Commissioner to file a discrimination charge alleging that an employer violated Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), or the Genetic Information Nondiscrimination Act (GINA), after which the charge is investigated by the appropriate EEOC field office. In addition, the Age Discrimination in Employment Act (ADEA) and the Equal Pay Act (EPA) authorize EEOC field offices to initiate investigations of possible violations of those two statutes even without a charge from an aggrieved individual.  These processes are in addition to the more common pro­cedure of EEOC field offices receiving discrimination charges from individual employees or job appli­cants and then evaluat­ing and investi­gating those charges.

UNITED STATES DEPARTMENT OF LABOR update

U.S. Department of Labor June 5, 2020 2.5 Million More Jobs in May Payroll employment increased by more than 2.5 million in May, according to the Bureau of Labor Statistics’ jobs report released today. Supporting Small Business Employers U.S. Secretary of Labor Eugene Scalia joined President Trump and Vice President Pence for a bill signing that increases flexibilities for small businesses using the Paycheck Protection Program. #WB100 The Women’s Bureau was created 100 years ago today, on June 5, 1920, to promote the welfare of wage-earning women, improve working conditions, increase efficiency, and advance opportunities for women to access profitable employment. Reopening Safely In North Carolina this week, Secretary Scalia joined business leaders for a roundtable discussion on reopening the economy safely. Secretary Scalia also toured a local Lowe’s store, met with workers, and discussed the reopening process with Lowe’s leaders. Coronavirus Test Costs If your healthcare provider recommends a COVID-19 test, you can get diagnosed without a copay, coinsurance, or deductible charge. COVID-19 UPDATES AND RESOURCES Release: OSHA guidance for stockroom and loading dock workers Release: OSHA guidance for farmworkers Website: All Department of Labor coronavirus resources IN CASE YOU MISSED IT Coronavirus Leave A Minnesota city has paid $1,696 in back wages to an employee wrongly denied paid sick leave after her healthcare provider recommended a quarantine for coronavirus-related reasons. Veterans’ Employment Challenge As part of the Veterans’ Employment Challenge, three finalists have been selected to build an application that will better match transitioning service members’ skills with employers’ needs. Private Equity Investments The Department issued guidance on private equity investments in professionally managed asset allocation funds as an investment option for defined contribution plan participants. Wages Recovered An Iowa restaurant has paid $3,059 in back wages after failing to pay 14 workers for payroll earned before the restaurant closed due to the pandemic. Safety Citation OSHA has cited two New Jersey construction companies for exposing workers to safety hazards, and proposed $148,264 in penalties. Debt Management Secretary Scalia signed an order on debt management to improve accountability and payments to workers who are owed money. Legal Achievement Award Associate Regional Solicitor Samantha Thomas received an award for leading the Blackjewel litigation team in recovering $5,867,536 in back wages for mine workers in four states. COMPLIANCE ASSISTANCE HIGHLIGHT Federal Contractor Guidance The Office of Federal Contract Compliance Programs has tools and guides to help federal contractors.

EUROPEAN BANK update

EBRD newsletter - Friday 5 June

05-06-2020 02:32 PM BST
A digest of recent news from the EBRD

EBRD funding secures completion of wastewater project in Croatia
05-06-2020 11:30 AM BST

Treatment facility to benefit coastal town of Poreč

EBRD provides US$ 90 million trade facility to Ukrgasbank
05-06-2020 08:55 AM BST
New trade limits create fresh opportunities for Ukrainian exporters and importers

EBRD announces winners of the 2020 Sustainability Awards 05-06-2020 09:01 AM BST Winners demonstrate innovation, best practice and leadership