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MacroeconomicPolicyinFragileStates MacroeconomicPolicyin FragileStates Editedby RALPHCHAMI,RAPHAELESPINOZA, ANDPETERMONTIEL
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Foreword PictureachildborntodaytoavillagerinSomaliaorLaos,oranotherfragilestate. Thinkaboutherprospectsinlife.Asareaderofthisbook,youareprobably worried:Willshehavecleanwaterandenoughtoeat?Willshebesafefrom violence?Willshebeabletogotoschool?Towork?Tolivebetterthanher parents?
Itdepends onleadershipinhercountry,andonsupportfromtheinternationalcommunity.
Stabilizingfragileandconflict-affectedstatesisamongtheworld’smostdifficultchallenges.Anditisoneofthemostpressing notonlyforthepeopleof thosecountries,butforallofus.Supportingthesestatesiscriticaltochallenges likeendingtheCOVID-19pandemic, fightingclimatechange,reducingglobal poverty,andamelioratingsomeofthecausesofinvoluntarymigration.
WorkingwithfragilestatesattheIMF,andthroughoutmycareer,Ilearned thatnotwocountriesarethesame.Knowledgeofeachcountry’speopleand historyisnecessary,inadditiontounderstandingitspoliticaleconomy.
Ralph,Raphael,Peter,andthecontributorstothisbookhavestudiedfragile statesandtheirproblemsfrommanyangles,takingabroadviewofthemacroeconomy.Theyhaveidentifiedthemostpressingchallengesandprovideda comprehensiveandtimelysetofsolutions.Itisbothamenuofoptionsfor policymakersseekingtoaddressthesestates’ urgentneeds,andamanualfor howtoexecutethem.
Inadditionaltowisdombornofdeepexperienceandanalyticalrigor,the authorsbringahumilityandhumanitythatrecognizestheuniquequalitiesof eachcountry,andtheenormityofthechallengestheyface.Andthediscussionis enrichedbycountrycasestudiesshowingbothpolicysuccessesandfailures,and lessonslearned.
Informedbythisperspectiveandtheongoingpandemic,theIMFisimplementingastrategytoimprovethequalityandeffectivenessofitsengagementwith thesecountries.Wehaverespondedquicklytoacrisislikenoother,withnearly$2 billioninnewlendingto12fragileorconflict-affectedstates,whichwillhelp catalyzedonorsupport.AndtheIMFisalsograntingdebtreliefto21fragilestates, hometoabout313millionpeople.
Wearechangingourlendingfacilitiestoallowforquickerandbettertargeting of financialsupport,andadaptingourpolicyadviceandtechnicalassistanceto accountforthepeculiaritiesofthecrisis.Someofthesechangeswilldoubtless outlastthepandemic.
TheFundandourmostvulnerablememberstatesareonajourneytowarda greener,fairer,smarterrecovery andasafer,brighterfutureforthatchildborn today,andallthosetocome.
Thisbookhelpsusgetthere.
KristalinaGeorgieva ManagingDirector
