International Monetary Fund Research Articles

Why should imminent international funds for solar photovoltaics go to families and the private sector and not to the government to stop the electricity crisis in Lebanon?

In Lebanon, the failure to supply oil-based electricity was mostly due to flawed management, increasing costs of bills of private generators, the rise of fuel prices, and the absence of subsidies. In response, individuals have started funding small-scale rooftop PV (RPV) to increase the solar share beyond the national target while the government has struggled for years to pass bidding phases for 12 utility-scale PV (USPV). In addition to publicly unavailable details, specifications, assessments, and termination plans about the 12 solar farms, their geographical sitting was not technically evaluated. Therefore, this study mapped USPV suitability in Lebanon using a multi-criteria decision-making algorithm. Although the highly suitable lands can supply 40% of the total land needed to cover the peak demand, the areas were not equally distributed throughout the governorates. Even if USPV can help reach national solar targets, investing in public-related projects can be perilous, especially with historical patterns of inappropriate allocation of funding, political instability, and absence of accountability. Thus, investing in RPV can be more attractive due to its efficiency, grid independence, and flexibility and should be oriented primarily towards low-income families and small entrepreneurs and later to wealthier people to ensure social equity and welfare.

China Lending and the Political Economy of Leader Survival

What are the political implications of Chinese loans to borrowing countries? Our argument is that similar to other forms of international finance, loans from China provide leaders with additional resources to maintain their power. The nature of China’s lending practices—characterized by an absence of good governance conditions—offers a unique advantage to political leaders, allowing corrupt leaders who receive loans from China to stay in power for longer periods. To support this argument, we conducted an analysis of a dataset of 115 developing countries from 2000 to 2015, focusing on the relationship between Chinese loans and leaders' political survival. Our findings indicate that Chinese loans positively impact leader survival, with the strongest effects observed in more corrupt regimes. To address endogeneity concerns, we employ a shift-share instrumentation strategy and several additional tests. Our analysis underscores the importance of Chinese lending to both international and domestic politics.

Emerging Challenges for Cleaner Production Networks – The decline of the Global Resource Efficient and Cleaner Production Network (RECPnet)

Cleaner production has been channelled through National Cleaner Production Centres (NCPCs) across the world since the year 1994. In order to strengthen the scaling up and replication of Resource Efficient and Cleaner Production (RECP) in developing and transition countries, the Global Resource Efficient and Cleaner Production Network (RECPnet) was formed as a platform for networking, knowledge exchange and information transfer. However, the success of such networks can become short-lived if there is no funding strategy beyond project financing and if individual network members fail to take ownership of the network. This research assesses the role of the Global RECPnet in promoting cleaner production and analyses the challenges that the network faced in ensuring its continuity beyond project finance. The research further identifies barriers in the advancement of the Global RECPnet and its goals. A Case Study methodology was used and within the case study, interviews were undertaken with key industry experts in the field of Resource Efficient and Cleaner Production (RECP). Questionnaires were also send to selected members of the network. Content analysis was undertaken on publicly available Global RECPnet documents and evaluation reports. We conclude that networks such as Global RECPnet are effective drivers of cleaner production, but require a plan for network survival beyond patron agencies. However, without patron agencies and international funders, the network proved not to be viable, as most of the members could not finance their own subscriptions. We propose for a hybrid mechanism of network financing and dealing with dependencies on development support.

Stock Exchange Activity in the Securities Market

The article demonstrates the results of a study of the current state of the financial market of Kyrgyzstan using indicators that form the Financial Development Index (FMI), developed by the International Monetary Fund (IMF). The analysis conducted for 2023 showed that along with positive trends in the growth of the number of financial institutions, the financial market of Kyrgyzstan is characterized by most of the problems of emerging markets. At the same time, the performance indicators of financial institutions characterizing the banking sector showed a negative trend. Based on the results of the analysis, a conclusion was made about the development of the financial market of Kyrgyzstan with its imbalance and a decrease in the efficiency of the credit segment, which is a key one. In general, there has been no significant improvement in most indicators of financial development, therefore, a noticeable change in Kyrgyzstan’s position in the IMF rating on the financial development index is not visible in the near future.

XR support in the frame: the creative extended reality ecosystem in Australia

ABSTRACT Extended Reality (XR) is an emerging creative industry in Australia, and practitioners have had broad success in the international film festival circuit. This paper presents the results of a sector analysis conducted in late 2020 by the authors for their non-profit organization Frame Documentary. The analysis was designed to learn about the barriers to developing and producing non-fiction creative work in Australia using new technologies. We found that despite the international visibility of Australian XR practitioners, the domestic XR sector does not yet have access to strong and tailored support structures. While international XR artists have access to numerous funds, labs and mentorship programmes, Australian creative XR is developed and funded via the mainstream Australian screen industry – broadcasters, state and federal screen funding agencies, or is developed completely outside of dedicated screen support structures. Through a wide range of interviews with creative XR practitioners, as well as industry supporters and observers (including early career artists, award-winning practitioners, international sister organizations, festivals, funding agencies and commissioners), we identified six core areas of concern to the industry. We suggest that initiatives targeted at these areas can help to build a stronger, more sustainable and more diverse creative XR sector in Australia.

Site Level Geospatial Analysis for Intensity Index of Gold and Copper Mining: Impact on Biodiversity and the Potential for Blockchain Integration

Large-scale and small-scale metal mining operations may not have been considered in the past as big threats to the observed local to global biodiversity pressure, but their zones of influences may adversely change species habitats, directly, indirectly, at local and regional scales. In this study, the intensity index on biodiversity is generated from mining gold and copper in Itogon and Tuba areas in the Philippines. These two areas are located in Northern Luzon with high base metal concentration in porphyry veins deposits with a host of biodiversity due to the distinct biogeographic, altitudinal gradient and climate. The endemic and threatened flora Nepenthes Bellii K. Kondo, Shorea polysperma, Pterocarpus indicus Willd and Lilium philippinense Baker within three mining sites indicated as X, Y, Z are used as species under threat and with multiple variable summation of their geospatial pattern of occurrences and by using by Python Programing Language to compute the Mining Factors (MF) from the Mines Annual Production and Percentage Grades, thereafter, the MF is multiply by the Biodiversity Factor (BDF) which is define as the product of the mines Area Factors (AF) and Protected Area Factor, and the values obtained are divided by Fibonacci Extinction Factor; which is the species Area of Occupancy(AOO) divided by the Extent of Occurrence(EOO) raised to the power of the corresponding Fibonacci Number. The final output is multiplied by the Potential Ecological Risk Indexes from the Heavy metals released from the mines. FEF is generated from QGIS geospatial analysis and the IUCN biodiversity Red List Category that finally yields the MintBio index. MintBio index values generated are subjected to linear regression analysis using Microsoft Excel data analysis tool to test the statistical significance. The MintBio indexes obtained are independent of mining scales or MF but depend heavily on the FEF and AF suggesting that MintBio as a model could serve as an attribution and intensity index to quantifying mining pressure on the ecosystem and species diversity that are often ignore using only biodiversity proxies such as trees cover and protected area. The value of the MintBio obtained in this study ranges from 686.756 of mine Z to 33,614,780.60 of mine Y indicating vast differences that were captured due to the higher threat of mine Y to the endemic and threatened species within 5km from the mine center. The inclusion of conservation factors to the index would further increase such sensitivity for a better evaluation and such would create the opportunity for incentives for mines operating responsibly and with high conservation tract records. MintBio is a potential model to improve policy targets in biodiversity monitoring, impact verification, corporate and environmental management in eco-designs, eco-labelling for huge metal consumption industries and would foster validation of sustainability claims regarding mining if integrated into blockchain as solution framework for proof-of-zero impact to biodiversity supply chain and international financing standardization for metals trade impact index options from mines in the Philippines and those across the globe.

Re-thinking the sustainability of sovereign debt

Abstract This article explores the contributions that law can make to the development of a holistic approach to sovereign debt sustainability. We focus on debt sustainability assessments (DSAs) conducted by the International Monetary Fund (IMF), which are linked to the IMF’s surveillance and lending functions, and determine whether it is necessary to restructure the debt of a country in debt distress and the timing, process, and terms of such a debt restructuring. While the precise causes of each country’s debt situation are unique, all countries are grappling with the rising costs and growing risks posed by climate change and other environmental and social factors. We suggest that the IMF’s current treatment of these environmental and social factors is opaque, unpredictable, and hard for the citizens of affected countries and other outsiders to understand. It also obscures the true burden that debt obligations impose on a sovereign and the country’s residents, and, thus, the amount of debt relief that it may need in order to achieve a sustainable debt position. To address these shortcomings, we identify financial, economic, environmental, and social (FEES) factors that we contend should be incorporated in the design of the frameworks governing DSAs and the operating principles and practices of the IMF through which DSAs are conducted. We argue that the IMF should draw on various hard and soft sources of international and transnational law to develop a FEES-based approach to sovereign debt sustainability that is more consistent, predictable, and legitimate than the current approach.

Stranded? The IMF in a world of rising economic nationalism

Abstract The International Monetary Fund (IMF) is entering a period of unprecedented challenge. Countries need its assistance to deal with debt distress, the post-Covid development crisis, new threats of financial instability, and the fallout of a decade of unconventional monetary policy. But the IMF faces two challenges of its own. As powerful countries ‘reset’ the rules on which the IMF’s work proceeds, it must build a new paradigm for advising its borrowers. Equally, as those same powerful countries show less willingness to cooperate with each other in international organizations, the IMF must keep them involved and working together within the institution.

Natural Disasters and Human Development in Asia–Pacific: The Role of External Debt

The average country in Asia–Pacific experiences more natural disasters than average countries of other developing regions. This paper presents stylized facts on natural disasters, human development, and external debt in Asia–Pacific. The paper also contains estimates of the effects that natural disasters have on human development. Controlling for country- and time-fixed effects, the dynamic panel model estimates show that external debt has a mitigating effect on the adverse impacts that natural disasters have on human development; in countries with low external debt-to-GDP ratios, natural disasters significantly decrease the human development index, but not so in countries with high external debt-to-GDP ratios. External debt (i.e., borrowing from abroad) is a financial contract for obtaining resources from abroad (i.e., imports of goods and services). When a country experiencing a natural disaster borrows from abroad to increase imports of goods and services, the population suffers less when a natural disaster strikes. Natural disasters destroy goods and capital (e.g., food, machinery, buildings, and roads) in the countries in which they occur. If imports of goods and services do not increase, then the population has less goods and services to consume following a natural disaster. By increasing imports, which are mirrored on the financial side by an increase in external debt, the population of a country that was struck by a natural disaster can experience consumption smoothing. As the incidence of natural disasters increases globally, a policy recommendation for disaster-prone countries, supported by the empirical results of this paper, is the need for deeper and innovative mechanisms of access to international financing, including reforms in both domestic and international financial systems. The paper’s most significant contribution is the unique lens through which it analyzes the often-studied subject of natural disasters. Rather than looking at disasters as merely adverse events and debt as an unwelcome obligation in isolation, it connects the two and uncovers the paradoxically positive and beneficial role a healthy level of external debt can play in mitigating the adverse effects of these disasters. It provides a fresh perspective, a shift in thinking that may immensely benefit external debt and disaster management policies.

Uzbekistan's Integration into the International Financial System and its Role in Developing Entrepreneurship

This article discusses the activities of international integration associations, the necessity of developing trade relations with the countries included in these associations, as well as the importance of enhancing cooperative relationships with international financial organizations. The article highlights the increasing connection of our independent republic with major global financial institutions and international Islamic financial funds. Consequently, this development enables Uzbek entrepreneurs to access the global market, produce goods that meet international standards, and ultimately contributes to the economic and social prosperity of the republic. It also explains how small and medium-sized enterprises in Uzbekistan can achieve significant success.

Now is the time for conservationists to stand up for social justice.

Existing power imbalances and injustices could be exacerbated by large flows of international funding for nature recovery. Conservationists are still grappling with what social justice means in practice; a major shift in mindset is required.

Cancer research funding in South Asia

BackgroundThe rising burden of cancer significantly influences the global economy and healthcare systems. While local and contextual cancer research is crucial, it is often limited by the availability of funds. In South Asia, with 1.7 million new cancer cases and 1.1 million deaths due to cancer in 2020, understanding cancer research funding trends is pivotal. MethodsWe reviewed funded cancer studies conducted between January 1, 2003, and Dec 31, 2022, using ClinicalTrials.gov, International Cancer Research Partnership (ICRP) Database, NIH World RePORT, and WHO International Clinical Trials Registry Platform (ICTRP). We included funded studies related to all cancer types, conducted in South Asian countries, namely Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. ResultsWe identified 6561 funded cancer studies from South Asia between 2003 and 2022, increasing from 400 studies in 2003‐2007 to 3909 studies in 2018–2022. India had the highest number of funded cancer studies, while Afghanistan, Bhutan, and the Maldives had minimal or no funded cancer research output. Interventional studies (67.3%) were the most common study type funded. The most common cancer sites funded were breast (17.8%), lung (9.9%), oropharyngeal (6.2%), and cervical (5.0%) cancers. On the WHO ICTRP, international funding agencies contributed to a majority of studies (57.5%), except in India where local funding agencies (58.2%) funded more studies. ConclusionThis study identified gaps in research funding distribution across cancer types and geographic areas in South Asia. This data can be used to optimize the distribution of cancer research funding in South Asia, fostering equitable advancement in cancer research.

Global economic contraction, climate change and the gold market volatility: A GARCH‐MIDAS approach

AbstractOur paper has two main objectives. First, we aim to investigate the relationship between global economic contraction (GECON) and the return volatility of gold. Second, we examine the role of climate change as a mediator in this connection. To achieve this, we use the GARCH‐MIDAS model, which accommodates data in different frequencies in the same model. This prevents the loss of important information when aggregating high‐frequency data to lower‐frequency data. We also use alternative measures of GECON from Kilian and Zhou (Journal of International Money and Finance, 2018; 88, 54–78) and Baumeister et al. (Review of Economics and Statistics, 2020;104(4), 828–844) to ensure the robustness of our findings. Our results show that global economic contraction positively impacts the return volatility of gold. Additionally, our findings confirm that the increased uncertainty caused by climate change makes gold a safe haven for investors. This means that gold's return volatility is not negatively impacted by the rising level of uncertainty caused by climate‐induced contraction. Moreover, we note that the index of GECON that accommodates more dynamics can produce more accurate predictability for gold market volatility. Our analysis of stock market volatility further confirms that gold has a safe haven potential relative to the stock market.

REVIEW OF FUNDING PROCEDURES ON PT FIFGROUP CILEGON BRANCH

Purpose - In the world of trade in goods and services, the types of transactions that are commonly carried out are payment by cash or credit. PT. Federal International Finance is one of the actors in the business world engaged in business Honda motorcycle credit sales financing. Total financing is dominated by credit. This is done primarily in addition to attracting as many buyers as possible also to make it easier for consumers to manage cash Design/methodology/approach - Financing credit sales of Honda motorcycles to PT. FIFGROUP uses a system and credit financing procedures. The purpose of this study is (1) to analyze the effectiveness of procedures for providing credit funds to customers at PT. FIFGROUP Cilegon Branch (2) To analyze the customer's bad credit control system PT. FIFGROUP Celeron Branch Finding - Observations were made on the results of this study shows In analyzing the feasibility of granting credit to consumers, besides using 5C analysis the company also uses five parameters feasibility in analyzing whether or not the prospective debtor is financed credit, this proves that the company has carried out the process credit approval in accordance with procedures established by the company. Appropriate division of tasks and segregation of functions is control internal company which is one way to minimize risk uncollectible accounts receivable. Keywords: procedures, assessment procedures Automotive.

Performance and investment styles of international multi-asset funds during market crises

This paper presents a comprehensive investigation into the performance of multi-asset funds investing internationally. Based on a custom-built conditional multi-factor model, which includes several bond and equity-related factors, along with time-varying betas and alphas, we show that funds in our dataset significantly underperform from 2004 to 2021. This evidence holds even on a before-fee basis, with funds investing predominantly in bonds exhibiting significantly higher alphas than funds investing predominantly in equities. Since multi-asset funds may better hedge against market downturns than equity or bond funds, given their higher asset class diversification, we also evaluate performance for crisis and non-crisis phases separately. The results show that, during market crises, international multi-asset funds perform significantly better than in non-crisis times, achieving neutral performance. However, while funds that favour bond investments perform similarly across different market phases, funds that prioritize equity investments perform significantly better during crises. Consequently, multi-asset funds with higher bond holdings can be a better option during non-crisis periods, while funds with higher equity holdings should be preferred during market downturns. This somewhat puzzling finding seems to be related to funds’ cash holdings. By providing a better understanding of the asset allocation decisions of international mutual fund managers, as well as of their impact on fund performance, this work has meaningful implications for investors.

Neuroleptic malignant syndrome and serotonin syndrome: a comparative bibliometric analysis

ObjectiveThis study aimed to analyze and map scientific literature on Neuroleptic Malignant Syndrome (NMS) and Serotonin Syndrome (SS) from prestigious, internationally indexed journals. The objective was to identify key topics, impactful articles, prominent journals, research output, growth patterns, hotspots, and leading countries in the field, providing valuable insights for scholars, medical students, and international funding agencies.MethodsA systematic search strategy was implemented in the PubMed MeSH database using specific keywords for NMS and SS. The search was conducted in the Scopus database, renowned for its extensive coverage of scholarly publications. Inclusion criteria comprised articles published from 1950 to December 31st, 2022, restricted to journal research and review articles written in English. Data were analyzed using Microsoft Excel for descriptive analysis, and VOSviewer was employed for bibliometric mapping.ResultsThe search yielded 1150 articles on NMS and 587 on SS, with the majority being case reports. Growth patterns revealed a surge in NMS research between 1981 and 1991, while SS research increased notably between 1993 and 1997. Active countries and journals differed between NMS and SS, with psychiatry journals predominating for NMS and pharmacology/toxicology journals for SS. Authorship analysis indicated higher multi-authored articles for NMS. Top impactful articles focused on review articles and pathogenic mechanisms. Research hotspots included antipsychotics and catatonia for NMS, while SS highlighted drug interactions and specific medications like linezolid and tramadol.ConclusionsNMS and SS represent rare but life-threatening conditions, requiring detailed clinical and scientific understanding. Differential diagnosis and management necessitate caution in prescribing medications affecting central serotonin or dopamine systems, with awareness of potential drug interactions. International diagnostic tools and genetic screening tests may aid in safe diagnosis and prevention. Reporting rare cases and utilizing bibliometric analysis enhance knowledge dissemination and research exploration in the field of rare drug-induced medical conditions.

Climate policy at the International Monetary Fund: No voice for the vulnerable?

AbstractThe climate crisis prompted the International Monetary Fund (IMF), an international lender of last resort, to implement wholesale reforms to incorporate climate policy into its operations. At the IMF, selected countries from the Global North—historically the largest emitters of greenhouse gases—dominate decision‐making. This raises several questions. Can the Fund implement an ambitious and effective climate policy? How are climate‐vulnerable developing countries and their interests represented in everyday decision‐making at the institution? Drawing on scholarship on the political economy and legitimacy of international organizations, we focus on the formal distribution of decision‐making power within the IMF to evaluate the IMF's shift toward climate change. Our empirical analysis of the representation of 57 self‐identifying climate‐vulnerable developing countries (the V20) at the IMF and within its Executive Board shows that these countries, speaking for almost a third of the Fund's membership, command a vote share of merely 5.6%. Our assessment of the Climate Strategy adopted by the IMF amplifies equity concerns over its climate policies and further attests to the disregard of requests by developing countries. Barring meaningful governance reform to increase the voice and representation of climate‐vulnerable developing countries, the IMF's approach to addressing climate change is unlikely to translate into legitimate and effective climate policy.

Getting to Green: International Financing for Green Energy Infrastructure in Developing Countries

One of the symposium panels discussed financing clean energy projects. One panelist in particular expressed concern about how to build developing countries’ institutional capacity to utilize international financing for green energy. Global institutions like the World Bank and the International Monetary Fund (IMF) provide loans to developing countries conditioned on the countries privatizing and deregulating their energy sectors—otherwise known as austerity. While austerity measures may make sense in developed countries, this Comment argues that developing countries often lack the infrastructure needed to effectively utilize international financing precisely because the loans are conditioned on austerity. The World Bank and the IMF should therefore change the conditions of their loans from privatization to public-sector investment in infrastructure. Amending the conditions for green energy loans would make privatization more feasible in the future and promote the transition to green energy in developing countries.

Cycles of Contempt: Exploring Argentine-IMF Relations Through Protest Music

Abstract: Argentina has a history of tumultuous agreements with the International Monetary Fund. While the IMF has provided essential economic support, their loan agreements have often caused further economic issues that most profoundly impact the middle and working class, such as high inflation and poverty rates. This has created much frustration among the people, and they have taken these frustrations into music, protesting the damage and harm that is produced by the IMF’s involvement in Argentina. These protest songs can be analyzed through Jeneve Brooks’ EMM- framing theory, with EMM standing for emotive, moral, and mnemonic, to understand how the IMF is negatively represented and how the songs can influence the public’s opinion on the IMF. This paper makes use of this theoretical framework to analyze three examples of Argentine protest songs against the IMF: “Estoy tocando fondo” by Viuda e Hijas de Roque Enroll,“F.M.I. (Sufre Sudamérica)” by Fun People, and “Sinceramente militamos” by La Cámpora. This analysis provides insight into the increasing reactiveness of the Argentine people against the IMF, which was witnessed in 2021 and 2022 when protests broke out over negotiations between the IMF and the Argentine government even though an agreement had yet to be made.

Think globally, settle locally? Multilateral platforms for cross-border payments based on distributed ledger technology

Cross-border payments, especially between different currency areas, are still more expensive, slower and less transparent than domestic transactions. In addition to attempts to facilitate interoperability by harmonising message standards or legal frameworks, there is also the vision of using multilateral platforms to reduce existing inefficiencies. A particular focus here is on distributed ledger technology (DLT), which could create additional benefits beyond payment transactions, for example by facilitating broader economic activity by means of tokenised assets. Some private sector players, as well as international organisations such as the International Monetary Fund and the Bank for International Settlements, have already developed concepts for DLT-based multilateral platforms. However, their realisation faces broader policy challenges that are unlikely to be solved per se with the help of new technologies. Although a global multilateral platform does indeed harbour great potential for efficiency gains, regional solutions are more likely to emerge that could be linked together to achieve efficiency gains at a global level.