rural-urban dynamics_report.pdf - Khazar University

52 MACROECONOMIC, TRADE, AND AID DEVELOPMENTS GLOBAL MONITORING REPORT 2013
FIGURE 1.7
% of GDP, median country
0
–1
–2
–3
–4
Fiscal deficit
Emerging market countries
Low-income countries
2008 2009 2010 2011 2012
Source: World Economic Outlook.
Note: General government balance (net lending/net borrowing) as defined in IMF Government
Finance Statistics Manual 2001.
assessed through annual surveys of IMF
country desks. 2 Over the years, significant
progress has been made in several areas of
economic policy. Low-income countries in
Sub-Saharan Africa have registered relatively
higher improvements. The number of countries
with unsatisfactory policies has declined
substantially since 2005 in most categories.
However, the quality of policies differs considerably
across the different policy areas,
with concerns typically focusing on fiscal
issues (figure 1.11). In 2012, the share of
countries rated positively on the composition
of public spending—an important driver for
the attainment of the MDGs—reversed some
of the modest gains achieved since 2005. In
fiscal transparency, a number of relatively
strong-performing countries scored higher in
2012 than they did in 2011, while the number
of countries with unsatisfactory policies
relating to governance in the public sector
declined. Monetary policy and governance in
monetary and financial institutions continue
to remain relatively strong areas of macroeconomic
policies. The assessment of consistency
of macroeconomic policies remains mixed.
From 2011 to 2012, the number of countries
with unsatisfactory policies increased slightly
while the number of relatively strong-performing
countries fell.
Managing macroeconomic risks in
low-income countries
Most low-income countries recovered quickly
from the 2009 crisis and have experienced
strong growth since early 2010. 3 The continuing
recovery was helped by deepening
FIGURE 1.8
Monetary policy loosening
Share of countries (%)
80
70
60
50
40
30
20
10
a. Emerging market countries
81
in 2009
Share of countries (%)
80
70
60
50
40
30
20
10
b. Low-income countries
0
Monetary
Conditions Index
Discount rate
Exchange rate
0
Monetary
Conditions Index
Discount rate
Exchange rate
2008 2009 2010 2011 2012
Source: World Economic Outlook.
Note: Monetary policy loosening is based on Monetary Conditions Index (MCI) calculations. MCI is a linear combination of nominal short-term interest rates
and the nominal effective exchange rate (with a one-third weight for the latter).