International Monetary Fund Research Articles

Transcend local for global: ESG as a legitimacy signal in the global expansion of emerging multinational enterprises

Emerging market multinational enterprises (EMNEs) are under increasing pressure to demonstrate robust environmental, social, and governance (ESG) as they expand globally. However, existing research has not thoroughly examined the theoretical relationship between ESG disclosure and the degree of internationalisation of EMNEs. This study addresses this gap by integrating institutional and signalling theories, revealing that superior ESG is positively associated with higher levels of EMNE internationalisation. This relationship is mediated by international financing capabilities and moderated by media attention. The study demonstrates that strategic initiatives related to ESG disclosure can serve as signals of legitimacy for EMNEs navigating institutional complexities on a global scale. These findings are supported by an empirical analysis of panel data from 2011 to 2020, providing theoretical insights into ESG signalling mechanisms. Practically, proactive ESG strategies can offer a competitive advantage for EMNEs as they manage complex foreign expansions amidst growing demands for responsible business conduct.

THE WATER CRISIS LOOMS LARGE IN PAKISTAN WHICH MAY FACE ABSOLUTE SCARCITY

Pakistan has the fourth-highest rate of water use in the world, as reported by the IMF (International Monetary Fund), and is the 3rd greatest water-stress country in the world.Water can be scarce for many reasons: water supply is very low compared to demand, infrastructure is inadequate, and institutions fail to balance every person’s daily needs. Water scarcity is a global problem, with the most badly and worse affected communities. In this thesis we can measure Pakistan’s water scarcity with the four main indicators. The four main indicators can be measured in a country’s water scarcity: The Water Poverty Index, Water Resources Vulnerability Index, the Falkenmark indicator, and Physical and Economic Water Scarcity Indicators. Currently, Pakistan is one of the countries where demand of water exceeds over available water supply with the giving of these 4 indicators. There are many reasons for Pakistan’s water scarcity, being increased populace, citified and computerization, climate change, unsatisfactory warehouse, residues in the existing tank, corrupt system efficiency, irrigational problem and traditional methods of farming, and insufficient finance. The possible alternatives to overcome these issues are the construction of small and large dams where possible, the construction proper irrigation system, improving the surface water governance with suitable pricing, controlling the increase in population, improving transportation, changing the existing harvesting patterns by accepting low delta crops and using saline groundwater, in conjunction with independently with salt accepting crops. Nevertheless, a unified approach is required to optimally use water resources.

The Evolution of the International Monetary System: Impacts on Multinational Firms and Global Trade

The International Monetary System is a global system that regulates money transfers between different nations. It includes currency exchange rates, regulation of international payments, legislations on capital movements, and worldwide financial organizations, including the IMF. The paper analyses how the change over time of the International Monetary System (IMS) affects the international trade and MNCs. Thus, from the Bretton Woods new exchange regime established in 1944–1971 to the current floating exchange rate system, it has been analyzed in regard to the IMS's historical development. Because of the increasing volatility in the currency rate, this has consequently had an impact on the stability of international transactions and trade volumes. The IMS study investigates exchange rate systems, capital flow regulations, and the role of international financial organizations, including the IMF. For its methodology, the study resorted to a mixed-method approach, combining numbers analysis-that includes regression models and time- series data on exchange rates, amounts of international trade, and MNC performance-with analysis of the historical record and inspection of IMF policy documents. The study shows that trade goes down during big financial troubles, like the Asian Financial Crisis in 1997 and the Global Financial Crisis in 2008. It also shows that changes in exchange rates make global trade smaller, especially during these crises. Also, while IMF help, such as structural adjustment programs, often causes short-term problems for multinational companies (MNCs), like less foreign direct investment (FDI), these policies usually help stabilize economies and lead to recovery in the long run. The outcomes indicate how the IMS, international trade, and multinational corporations are intertwined. Acquainting oneself with the fluctuating money system is very crucial because it enables a person to make informed decisions about the world economy. Keywords: International Monetary System (IMS), Exchange Rate Volatility, Multinational Corporations (MNCs), International Trade, International Monetary Fund (IMF)

Implementing a pragmatic randomised controlled trial in a humanitarian setting: lessons learned from the TISA trial

IntroductionHigh-quality evidence is crucial for guiding effective humanitarian responses, yet conducting rigorous research, particularly randomised controlled trials, in humanitarian crises remains challenging. The TISA (“traitement intégré de la sous-nutrition aiguë”) trial aimed to evaluate the impact of a Water, Sanitation and Hygiene (WASH) intervention on the standard national treatment of uncomplicated Severe Acute Malnutrition (SAM) in children aged 6–59 months. Implemented in two northern Senegalese regions from December 22, 2021, to February 20, 2023, the trial faced numerous challenges, which this paper explores along with the lessons learned.MethodsThe study utilised trial documentation, including field reports, meeting minutes, training plans, operational monitoring data and funding proposals, to retrace the trial timeline, identify challenges and outline implemented solutions. Contributions from all TISA key staff—current and former, field-based and headquarters—were essential for collecting and interpreting information. Challenges were categorised as internal (within the TISA consortium) or external (broader contextual issues).ResultsThe TISA trial, executed by a consortium of academic, operational, and community stakeholders, enrolled over 2000 children with uncomplicated SAM across 86 treatment posts in a 28,000 km2 area. The control group received standard outpatient SAM care, while the intervention group also received a WASH kit and hygiene promotion. Initially planned to start in April 2019 for 12 months, the trial faced a 30-month delay and was extended to 27 months due to challenges like the COVID-19 pandemic, national strikes, health system integration issues and weather-related disruptions. Internal challenges included logistics, staffing, data management, funding and aligning diverse stakeholder priorities.Discussion and conclusionDespite these obstacles, the trial concluded successfully, underscoring the importance of tailored monitoring, open communication, transparency and community involvement. Producing high-quality evidence in humanitarian contexts demands extensive preparation and strong coordination among local and international researchers, practitioners, communities, decision-makers and funders from the study’s inception.Trial registrationClinicaltrials.gov NCT04667767.

Urbanization and growth nexus: do international financial flows matter?

PurposeThis study examines the impact of urbanization on growth and the role of international financial flows in the urbanization-growth nexus.Design/methodology/approachThe study applies the panel least square estimation to examine the impact of urbanization on growth using panel data from 50 developing countries from 1980 to 2016. Further, addressing the endogeneity issues in panel estimations, the study applies the dynamic System-GMM approach to investigate the role of financial flows in urbanization and their impact on economic growth in developing countries.FindingsContrary to the conventional literature, we found a non-linear (U-shaped) relationship between urbanization and growth. Our findings demonstrate that growth is reduced at a lower level of urbanization due to less availability, concentration, and synchronization of production factors. The concentration of physical and human capital and technological advancement in urban areas help developing countries achieve economic growth at a higher level of urbanization. Robust estimations divulged that foreign aid spent on infrastructure development and expanding urban regions helps promote economic growth. Nevertheless, as a resilient factor, remittances buffer the rapid pace of urbanization and reduce growth by resisting the migration of labor and capital from rural to urban areas.Practical implicationsThe paper's findings suggest policymakers promote urban infrastructure and development using local and international funds since its increased level spurs economic growth. Further, the results advise policymakers to reduce aid dependency, attract FDI, and facilitate the easy and low-cost transfer of money to promote remittance inflows since both FDI and remittances positively contribute to economic growth.Originality/valueThe paper contributes significantly to the literature by determining the U-shaped relationship between urbanization and growth and highlighting the role of international flows in the urbanization-growth nexus.

The Built Environment Data platform for experimental test data in earthquake engineering

AbstractExperimental testing of full structural systems and their components is crucial for understanding their response to earthquakes. Since the 1960s, global interest in such testing has grown, supported by numerous national and international funding initiatives. This has resulted in valuable data that has improved understanding of structural behaviour, spurred the development of new mitigation solutions and helped validate numerical models critical for simulation studies. These advancements have enabled engineers to improve building codes and guidelines, and have allowed risk modellers to more accurately assess risk. With advanced computational resources, integrating experimental findings into broader initiatives becomes crucial. This article discusses a recent European initiative, Built Environment Data (BED) (https://builtenvdata.eu/), which currently offers a platform to store and manage data from experimental research, embodied carbon and simulated design services. BED aims to serve the European Plate Observing System (EPOS) distributed research infrastructure as one of its Thematic Core Services (TCSs). This paper focuses on the Experiments service for managing experimental data, compares it to similar global efforts and outlines the specific requirements and system architecture, including the web services and datasets currently offered. The Experiments service is expected to significantly support engineers worldwide by making experimental research and data more findable, accessible, inter‐operable and re‐usable.

The role of the central bank of Iraq in confronting economic crime

The Central Bank of Iraq has made strenuous efforts to combat economic crime in Iraq, represented by financial and administrative corruption, money laundering and terrorist financing issues, as it is the highest regulatory and supervisory authority over the work of financial institutions, banks and banks, through issuing laws and legislation that have limited this crime, in addition to complying with international laws and recommendations issued in this regard, by Iraq's compliance with financial transparency, financial disclosure and accountability. It has also used advanced technological methods and effective regulatory and supervisory systems in its efforts to combat this crime, and the activation of the law (Where did you get this from?) contributed to increasing the role of the Central Bank of Iraq in monitoring economic crime. As the highest authority in managing financial and monetary affairs in Iraq, it may publish in its annual reports on an ongoing basis statistics related to corruption, money laundering and terrorist financing issues, and these reports are subject to periodic follow-up by international financial and monetary institutions, including the World Bank, the International Monetary Fund, the Financial Action Task Force (FATF), and other relevant institutions. This enabled it to achieve tangible success in reducing corrupt practices and illegal financial activities, and it was able to get off the monitoring and follow-up list. This is a clear indication of the escalation of local efforts in cooperation with these institutions. Despite the presence of some obstacles, it has achieved tangible progress in combating corruption

The Use of Tax Incentives to Attract Foreign Investment to Ukraine: A Solution to the Current Economic Instability

This article analyses the effectiveness of existing tax incentives aimed at developing the Ukrainian economy and contributing to post-war reconstruction. Statistical economic analyses, trend comparison and forecasting were used to examine the incentive instruments. The article details various tax incentives and analyses the activities of international agencies and funds that provide security for such financing. Recent examples of international brands investing in Ukraine’s reconstruction are considered, as well as the State Tax Service of Ukraine’s guide to tax incentives. In addition, the article looks at the distribution of recovery investment projects, both by region and chronology.

Greece’s 2015 Eurozone Bailout “Renegotiation”: Beware of Greeks Bearing “Unpolitics”?

In January 2015, Greece witnessed a political earthquake with the election of the populist anti-austerity/EU bailout coalition of the left-wing party SYRIZA and the far-right party ANEL. It is argued that during January–July 2015, the SYRIZA–ANEL coalition engaged in a protracted process of renegotiation of Greece’s bailout terms that were agreed between previous Greek governments and the so-called Troika (European Commission, European Central Bank, and International Monetary Fund) adopting a behaviour ruled by “unpolitics.” First, the SYRIZA–ANEL government immediately rejected formal and informal rules of EU decision-making. Second, the SYRIZA–ANEL government rejected traditional means of compromise, such as package deals and side payments. Third, when Greece’s creditors presented their last-minute bailout offer in June 2015 to avoid Greece leaving the eurozone (Grexit), the SYRIZA–ANEL government rejected the suggested solution and tried to exploit the ensuing deadlock by calling a rashly organised referendum asking Greeks to vote against the suggested deal. This period of “unpolitics” ended almost immediately after the referendum when, in a sudden and unexpected volte-face, Tsipras interpreted the referendum result as a call for compromise with the Troika and accepted the previously intolerable bailout deal.

Contested quantification for planetary health – A sociotechnical analysis of Bangladesh's water salinity monitoring infrastructure

In climate change and planetary health, the datafication of natural processes and their effects on human health is gaining importance, not least due to data's role in international funding mechanisms. In Bangladesh, water salinity has become the focus of much research and could emerge as an asset to access climate funding. Taking Bangladesh's water salinity monitoring infrastructure as a case study, this paper problematizes the “neutrality” of water salinity data. Adopting the methodological approach of an “infrastructural inversion”, we foreground the relational nature of data production. The study draws on ethnographic fieldwork in Bangladesh along the data production chain. We highlight how the involvement of a large variety of actors gave rise to vastly different data infrastructures and explicate the influence of actors' “problematization”. We further illustrate the importance of pre-existing materiality for the implementation of data collection systems on the ground and their power to influence whose reality is represented and whose is left out. Discussing these findings in the context of the international development sector reveals the complex interplay between the dual function of data as a mediator of knowledge and proof of legitimacy. Attention is paid to the tendencies of perpetuating patterns of exclusion and inclusion through data in a setting of project-based funding. We thereby provide global health researchers, policy makers and development practitioners with a detailed case study whilst stimulating reflection on the hegemony of datafication.

The art of paradigm maintenance: how the New Keynesian ‘Science of Monetary Policy’ tries to deal with the inflation of 2021–2023

The macroeconomic models used by major institutions including the Federal Reserve and the International Monetary Fund (IMF) failed to predict the inflation surge during 2021–2023. The output gap, the unemployment gap, the New Keynesian Phillips curve and inflation expectations did not give timely and relevant signals. The re-emergence of inflation thus threw the ‘science of monetary policy’ off the rails. Faced with the choice between changing their paradigm and proving that there is no need to do so, the ‘scientists of monetary policy’ got busy on the proof. As a result, a number of ad hoc epicycles have been added to the New Keynesian analytical core – with the help of which one can claim to be able to explain the sudden acceleration of inflation post factum. This paper critically reviews the theoretical and empirical merits of three recent tweaks to the New Keynesian core: using the vacancy ratio as the appropriate measure of real economic activity; hammering on the considerable risk of an imminent wage–price spiral; and the resurrection of the non-linear Phillips curve. The paper concludes by drawing out sobering lessons concerning the art of paradigm maintenance as practiced by the ‘scientists of monetary policy’.

Chinese Funding: A Curse to Africa

The role of China in the liberation of Africa from colonial rule cannot be down played as I laid a foundation to Africa today. Most African countries were aided by China militarily and ideologically in the fight against Western colonial rule. Though some scholars would suggest that China`s contribution was as a result of the hostility that was there in the times of the cold war between the self-acclaimed democrats of the Western bloc and the Communist Eastern bloc. Philosophers like Marx Engel, Karl Marx, Lenin and Mao Zedong had a major influence on the liberation of Africa. The purpose of this paper is to show how the relationship that started as sincere has become a curse for the poor and unconnected Africans. In recent years the Chinese has overtaken the Briton hood Institutes of the International Monetary Fund (IMF) and World Bank as the major lenders of loans to African States. Kwame Nkrumah warned us of the danger of Africa being recolonised in what he termed neo colonialism where the colonisers will come as investors. Neo colonialism is no longer a theory but has become a reality as will be exposed in this article using empirical, qualitative and quantitative research methods to show how a friendship with China has benefited the elite politicians at the cost of citizens affairs. Africa is endowed with natural resources yet it has the poorest population per Gross Domestic Product (GDP) per capita. The paper will show how it is easy for a Chinese to own a business in Africa compared to the native Africans using the case of Shurugwi in Zimbabwe.

Foreign Direct Investment and Its Impact on India's Economic Growth

One of the most important ways for nations to integrate into the global economy and promote economic growth and development is through foreign direct investment, or FDI. It means that an organization or individual from one nation invests resources into the assets or commercial ventures of another nation. Foreign direct investment (FDI) denotes a long-term stake and a substantial amount of control or influence over the management of the foreign firm, in contrast to foreign portfolio investments, which consist of passive ownership of securities. Intra-company loans, reinvestment of earnings, and ownership of equity are ways to attain this control. FDI is so more than just a cash investment; it's a calculated action that has the power to influence the host nation's economic environment. Three main components make up foreign direct investment (FDI) according to the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD): equity capital, reinvested earnings, and intra-company loans. Acquiring shares in a foreign company signifies ownership and control through equity capital. The investor's portion of profits that are reinvested in the overseas business to support development and expansion, as opposed to being sent home as dividends, is known as reinvested earnings. Funds borrowed or lent between the parent business and its overseas affiliates are referred to as intra-company loans, and they reflect continuing financial exchanges inside the corporate network. FDI may be divided into two primary categories: vertical FDI, which involves a company investing in a host nation to move upstream or downstream in different stages of production, and horizontal FDI, which involves a company replicating its home country-based activities at the same point of the value chain in a host country.

Misalignments in prepaid water technology: findings from urban poor settings of Kampala, Uganda

ABSTRACT Progressive urban water utilities in developing countries have, since the mid-2000s deployed prepaid dispensers (PPDs) to provide reliable and equitably priced water services to slum residents. This paper reports on a study that evaluates the performance of the PPDs first deployed in the slums of Kampala in 2006 by the National Water and Sewerage Corporation (NWSC), Uganda's main urban water utility. By February 2020, over 1,400 PPDs were installed in 20 slums, serving residents through over 33,000 access tokens. Data were collected in 2019/2020 through 275 household questionnaires, 17 key informant interviews, and 8 focus group discussions. The main finding was that although the PPD technology has achieved a relatively high diffusion rate, water drawn therefrom was an average of a paltry 7 litres per capita per day, meaning that many slum residents still rely on other water sources of doubtful quality. Key misalignments include misappropriation by local middlemen, who inflate the prices; high levels of technical malfunctions; and the utility's overreliance on international development financing for asset maintenance and expansion. NWSC should mainstream the pro-poor service department and build the necessary capabilities to ensure better technical functionality of the PPDs, including setting up smart partnerships where necessary.

Assessment of the Efficiency of the Financial Mechanism of Environmental Management

Abstract In recent decades, cataclysmic events, deterioration of air and water quality, and loss of biodiversity have forced us to look for ways to save nature. One of the ways to solve the problems is to ensure rational environmental management, which is possible by establishing an effective balance between consumption and compensation by creating an effective financial mechanism. The purpose of the study is to assess the efficiency of the current financial mechanism for environmental management in Ukraine and to determine the prospects for its improvement. The study uses analysis, synthesis, specification, systematization, and generalization. The graphical method was used to assess environmental taxes, and mathematical modelling was used to analyze the dependence of emissions on direct costs and capital investments in air protection and climate change. Environmental taxes in Ukraine are an ineffective instrument of the financial mechanism of environmental management. Their share in the structure of domestic GDP is lower than the share in the EU. The author suggests ways to improve them: to replace the CO2 tax with an energy tax; to cancel the tax-free limit of 500.000 tons of CO2 emissions per year; to change the structure of tax distribution; to introduce tax rebates. The correlation and regression analysis of the dependence of air pollutant emissions on current expenditures and capital investments in air protection and climate change issues showed the existence of a feedback loop. Investment support for environmental management should be provided from various sources in the following areas: national, local and international finances - primarily for the restoration of air, water and contaminated areas; own funds and international investments - for the modernization and greening of production.

Mapping the future of banking crisis research: Key contributors and emerging areas

Banking crises, marked by catastrophic loan losses and systemic collapse, wield unparalleled influence over economic stability and societal well-being. Despite extensive research efforts on investigations related to banking crises, the current literature lacks a systemic analysis of scholarly published articles. The present study aims to bridge this gap by analyzing scholarly literature on banking crises using bibliometric data from Scopus from 1969 to June 2024. Using the bibliometric toolbox's performance and science mapping techniques, we map the research landscape, highlighting key contributors and trends in banking crisis research. The contributors are the United States, the International Monetary Fund, the National Natural Science Foundation of China, and the Journal of Banking and Finance from Elsevier publishers. Furthermore, we identify the focal areas of research in banking crises. Finally, we anticipate that future research in banking crises should focus on the applications of machine learning, banking regulations, bank supervision, random forest, risk perception, the impact of the COVID-19 pandemic, democracy, corruption, financialization, fiscal consolidation, and the role of institutions such as Silicon Valley Bank. The findings of the study support regulators, researchers, policymakers, and research funding institutions in fostering collaboration and prioritizing research areas.

The Impact of the Oil Industry on the Economic Development of Nigeria

The study examined the impact of the oil industry on the economic development of Nigeria. The Nigerian petroleum industry dominates the Nigerian economy in terms of profits and revenue. According to the recent Petroleum Export Organization (OPEC) report, Nigeria currently ranks as the world's tenth-largest crude oil reserves and also the world's fifteenth crude oil producer. According to national statistics, the industry generates for the country more than 95% of the country's external revenue and about 80% of government revenue. Secondary data collected on the economic variable used in the study comes from the World Bank, worldometer, and the International Monetary Fund, Statistical Review of World Energy, Central Bank of Nigeria (CBN) Statistical Bulletin, CEICDATA (Organization of the Petroleum Exporting Countries) from 1990 to 2016. An augmented Dickey-Fuller unit root test, and autoregressive distributive lag (ARDL) method, and ARDL related to the test co-integration with various other diagnostic techniques were used for the study. The result reveals that oil production contributed to economic development, but the consumption and export of crude oil did not contribute to the improvement of the Nigerian economy. The study concluded that the government should implement policies that would encourage the private sector to actively participate in the crude oil sector and sectors of the economy. In addition, the government should use the revenue generated from oil to invest in other national sectors such as agriculture and manufacturing to expand the revenue stream of the economy

INTERNATIONAL MONETARY FUND: Reviews and Assessments

INTERNATIONAL MONETARY FUND: Reviews and Assessments

Іnternational and foreign practice of compensation for war crimes

The scientific article is dedicated to the study of international and foreign practices of compensation for war crimes. The article analyzes legal mechanisms and tools used for compensating victims of war crimes in various countries of Europe and the world. The main focus is on the practice of international courts, such as the International Criminal Court (ICC), as well as national judicial institutions that handle war crime cases. Specific cases and decisions that have influenced the development of law enforcement practices in this area are examined. One of the key aspects of the work is the analysis of international treaties and conventions that regulate compensation issues, including the Convention on the Non-Applicability of Statutory Limitations to War Crimes and Crimes Against Humanity, as well as the Rome Statute of the ICC. Various compensation models are considered, including monetary compensation, rehabilitation, and other forms of reparation. The article also explores the role of non-governmental organizations and international funds in the process of compensating war crime victims. The effectiveness of different approaches and mechanisms used to ensure justice and restore the rights of victims is analyzed. The work pays attention to the problems and challenges faced by law enforcement agencies when handling war crime cases, as well as the prospects for improving the international legal mechanism for protecting the rights of victims. The research is based on the analysis of specific cases, court decisions, and legal acts, allowing conclusions to be drawn about the current state and possible ways of developing the compensation system for war crimes. Thus, the article contributes to the scientific discussion on improving the mechanisms of legal protection for victims of war crimes and ensuring justice in international law.

International Monetary Fund Annual Report 2024

International Monetary Fund Annual Report 2024