Back Matter

Back Matter

International Monetary Fund. Research Dept.
Published Date:
February 1995
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World Economic and Financial Surveys

This series (ISSN 0258-7440) contains biannual, annual, and periodic studies covering monetary and financial issues of importance to the global economy. The core elements of the series are the World Economic Outlook report, usually published in May and October, and the annual report on International Capital Markets. Other studies assess international trade policy, private market and official financing for developing countries, exchange and payments systems, export credit policies, and issues raised in the World Economic Outlook.

World Economic Outlook: A Survey by the Staff of the International Monetary Fund

The World Economic Outlook, published twice a year in English, French, Spanish, and Arabic, presents IMF staff economists’ analyses of global economic developments during the near and medium term. Chapters give an overview of the world economy; consider issues affecting industrial countries, developing countries, and economies in transition to the market; and address topics of pressing current interest. Annexes, boxes, charts, and an extensive statistical appendix augment the text.

ISSN 0256-6877.

$34-00 (academic rate: 523-00; paper).

1994 (May). ISBN 1-55775-381-4. Stock #WEO-194.

1994 (Oct.). ISBN 1-55775-385-7. Stock #WEO-294.

1993 (May). ISBN 1-55775-286-9. Stock #WEO-193.

1993 (Oct.). ISBN 1-55775-340-7. Stock #WEO-293.

International Capital Markets; Developments, Prospects, and Key Policy Issues

This annual report (in 1993, in two parts) reviews developments in international capital markets, including market integration, globalization of investor and borrower behavior, the growing imbalance between resources of private market participants and central banks, the resolution of banking crises, and the challenge posed by the growth in derivative markets.

$20.00 (academic rater $12.00; paper).

1993. Part I: Exchange Rate Management and International Capital Flows, by Morris Goldstein, David Folkerts-Landau, Peter Garber, Liliana Rojas-Suarez, and Michael Spencer.

ISBN 1-55775-290-7. Stock #WEO-693.

1993. Part II: Systemic Issues in International Finance, by an IMF Staff Team led by Morris Goldstein and David Folkerts-Landau.

ISBN 1-55775-335-0. Stock #WEO-1293.

Staff Studies for the World Economic Outlook

by the IMF’s Research Department

These studies, supporting analyses and scenarios of the World Economic Outlook, provide a detailed examination of theory and evidence on major issues currently affecting the global economy.

$20.00 (academic rate: $12.00; paper).

1993. ISBN 1-55775-337-7. Stock #WEO-393.

1990. ISBN 1-55775-168-4. Stock #WEO-390.

Developments in International Exchange and Payments Systems

by a Staff Team from the IMF’s Exchange and Trade Relations Department

The global trend toward liberalization in countries’ international payments and transfer systems has been most dramatic in central and Eastern Europe. But developing countries in general have brought their exchange systems more in line with market principles and moved toward more flexible exchange rate arrangements, while industrial countries have moved toward more pegged arrangements. This study reviews developments in IMF members’ exchange and payments systems through March 1991.

$20.00 (academic rate: $12.00: paper).

1992. ISBN 1-55775-233-8 Stock #WEO-892.

Private Market Financing for Developing Countries

by a Staff Team from the IMF’s Policy Development and Review Department led by Charles Collyns

This study surveys recent trends in private market financing for developing countries, including flows to developing countries through banking and securities markets; the restoration of access to voluntary market financing for some developing countries; and the status of commercial bank debt in low-income countries.

$20.00 (academic rate: $ 12.00; paper).

1993. ISBN 1-5 577 5-361-X. Stock #WEO-993.

1992. ISBN 1-55775-318-0. Stock #WEO-992.

Issues and Developments in International Trade Policy

by an IMF Staff Team led by Margaret Kelly and Anne Kenny McGuirk

Since the mid-1980s, most developing countries have moved toward out ward-looking, market-oriented policies and have liberalized their trade regimes. At the same time, industrial countries have acted to liberalize financial markets and foreign direct investment, deregulate services, and privatize public enterprises. This study discusses these and other developments in industrial, developing, and transition economies.

$20.00 (academic rate: $12.00; paper).

1992. ISBN 1-55775-311-3. Stock #WEO-1092.

Official Financing for Developing Countries

by a Staff Team from the IMF’s Policy Development and Review Department led by Michael Kuhn

This study provides information on official financing for developing countries, with the focus on low- and lower-mid die-income countries. It updates and replaces Multilateral Official Debt Rescheduling; Recent Experience and reviews developments in direct financing by official and multilateral sources.

$20.00 (academic rate: $12.00; paper)

1994. ISBN 1-55775-378-4. Stock #WEO-1394.

Officially Supported Export Credits: Developments and Prospects

This study examines export credit and cover policies in the ten major industrial countries.

$15.00 (academic rate: $12.00; paper).

1990. By G.G-Johnson, Matthew Fisher, and Elliot Harris.

ISBN 1-55775-139-0. Stock #WEO-588.

1988. By K. Burke Dillon and Luis Duran-Downing, with Miranda Xafa.

ISBN 1-55775-006-8, Stock #WEO-587.

Available by series subscription or single title (including back issues); academic rate available only to full-time university faculty and students.

Please send orders and inquiries to:

International Monetary Fund, Publication Services, 700 19th Street, N.W.

Washington, D.C. 20431, U.S.A.

Tel.: (202) 623-7430 Telefax: (202) 623-7201

Staff Studies for the World Economic Outlook

By the Research Department of the International Monetary Fund

The analyses and recommendations contained in the Fund’s World Economic Outlook draw on a broad range of supporting studies. Some of these are summarized in boxes or annexes to the World Economic Outlook, Other, more substantial studies have been published, since 1986, in a single volume as Staff Studies for the World Economic Outlook.

Staff Studies for the World Economic Outlook, December 1993

  • “Boom and Bust” in Asset Markets in the 1980s: Causes and Consequencesby Garry J. Sckinasi and Monica HargravesThis paper analyzes the economic and financial causes and consequences of the accumulation and decumulation of debt, and the associated asset price inflations and deflations that occurred in many industrial countries. Important developments in both nonfinancial and financial private sectors are reviewed, the crucial role of monetary policy is analyzed, and the broad economic policy implications for the 1990s are assessed. The paper investigates, in some detail, the experiences in the United States, Japan, and the United Kingdom, and, to a lesser extent, in the Nordic countries.
  • How Accurate Are World Economic Outlook Projections?by Jose M. BarrionuevoThis paper examines the accuracy of the projections of output growth and inflation in the World Economic Outlook, including a comparison of the forecasting record during 1990-91 with that of previous recessions. The accuracy of the World Economic Outlook projections have generally improved since the mid-1980s. The analysis concludes that the World Economic Outlook projections for the industrial countries were generally unbiased and efficient. For the developing countries as a group, however, the growth projections were not unbiased, mainly reflecting unrealized policy assumptions for some countries with IMF-supported economic adjustment programs, and the inflation projections were not efficient.
  • An Extended Scenario and Forecast Adjustment Model for Developing Countriesby Manmohan S. Kumar, Hossein Samiei, and Sheila BassettThis paper extends the developing country model system used in the World Economic Outlook in three important directions; it incorporates fiscal and monetary sectors; it modifies the external sector to allow domestic, as well as external, factors to affect imports; and it extends the model to the group of net creditor countries. The paper reports model estimates for each of the 95 developing countries, and simulation exercises that quantify the effects of changes in domestic policies and the external environment.
  • Unemployment and Wage Dynamics in MULTIMODby Leonardo Bartolini and Steve SymanskyThis paper presents an analytical framework for the analysis of labor markets in the seven major industrial countries. Equations for unemployment and wage dynamics are integrated into MULTIMOD, the IMF’s macroeconometric policy simulation model. Several alternative policy scenarios are simulated on this version of the model and the version documented in IMF Occasional Paper 71 (MULTIMOD Mark 11: A Revised and Extended Model, by Paul Masson, Steven Symansky, and Guy Meredith, 1990) in order to illustrate the importance of the explicit treatment of labor markets.
  • An International Comparison of Tax Systems in Industrial Countriesby Enrique G. Mendoza, Assaf Razin, and Linda L. TesarBased on detailed data on tax revenues and before-tax and after-tax measures of macroeconomic flows, this study constructs time series of effective rates of taxation on labor income, capital income, and consumption for the seven largest industrial countries. International differences in tax structures are documented, and the links among tax rates, savings, investment, labor supply, and the rate of unemployment are examined.
  • Purchasing Power Parity Based Weights for the World Economic Outlookby Anne Marie Guide and Marianne Schulze-GhattasThis study provides background information on the new set of weights introduced in the World Economic Outlook of May 1993. It discusses issues relating to the estimation of purchasing power parities (PPPs) and compares GDP weights converted at market exchange rates with weights based on PPPs.

Price: US$20.00

(US$12.00 to full-time faculty members and students at universities and colleges)

Please send orders to:

International Monetary Fund, Publication Services 700 19th Street, N. W., Washington, D.C. 20431, U.S.A.

Tel.: (202) 623-7430 Telefax: (202) 623-7201

1See the May 1993 World Economic Outlook, page x.
2A summary of the Uruguay Round agreements and discussion of their likely effects are presented in Annex I.
3The events in the EMS from mid-1992 through September 1993 were analyzed extensively in the October 1993 World Economic Outlook, pp. 2-3 and 29-39, See also the May 1993 World Economic Outlook and the January 1993 Interim Assessment of the World Economic Outlook.
4The U.S. Bureau of Labor Statistics adopted new survey techniques in January 1994 that appear to have increased measured unemployment by about ½ of 1 percentage point. To maintain comparability, projections presented here are based on the old survey procedure.
5The CFA is commonly understood to refer to both the Communauté Financère de I’Afrique de I’Ouest and the Communauté Financière de I’Afrique Centrale.
6Fuel tax increases were implemented in 1993 in the United States, the United Kingdom. France, Spain. Sweden, and Australia and are scheduled to be, or already have been, implemented in 1994 in Germany and Italy, and again in the United Kingdom.
7All references to stock price movements are to the IFC Global Index, which covers a larger part of the market than the IFC Investable Index, which is designed from the perspective of foreign investors. In countries where there are significant restrictions on foreign portfolio investment, such as China, the two indices can have very different movements. See Monthly Update on Emerging Markets, International Finance Corporation (November 1993 through March 1994).
8There is a strong likelihood that measures of 1993 world trade are understated because of reduced data coverage and reporting delays associated with new procedures to record trade within the European Union. As a result of the abolition of customs formalities within the European Union on January 1, 1993, data on intra-Union trade are now derived from value-added tax (VAT) returns, which are supposed to show exports to and imports from other European Union countries. The precise degree of under-recording is difficult to estimate but could amount to as much as 5 to 10 percent for some countries. With a gradual decline in the degree of underrecording of intra-Union trade expected over the next several years, there could be a tendency for recorded trade growth to overstate actual developments in the period ahead.
9In addition, the Commission of the European Communities recently published a White Paper, Growth, Competitiveness, Employment: The Challenges and Ways Forward into the 21st Century (Brussels, June 1993); and the Organization for Economic Cooperation and Development will present the final report of its two-year employment and unemployment study to ministers of OECD countries in June 1994.
10This assumes that capital changes broadly in line with changes in employment and that average productivity remains broadly unchanged.
11Even countries such as Finland, Norway, Sweden, and Switzerland, which had maintained relatively low rates of unemployment throughout the 1980s, have recently experienced a sharp worsening of labor market conditions. Detailed data on unemployment, employment, and labor force trends are presented in recent issues of OECD, Employment Outlook (Paris).
12The countries included in each of the geographic groupings shown in Chart 16 have labor market institutions that share many common features. There is, of course, a diversity of labor market institutions and experiences, which will be masked by any grouping. Although labor markets in Australia and New Zealand both resembled those in Europe until recently, this may no longer be the case because of comprehensive labor market reforms undertaken in New Zealand in the early 1990s.
13See the discussion of the persistence of unemployment and hysteresis in the May 1993 World Economic Outlook, pp. 38-40; and Reza Moghadam and Caroline van Rijckeghem, “Unemployment Hysteresis, Wage Determination, and Labor Market Flexibility.” IMF Working Paper (1994, forthcoming). The structural unemployment rates shown in Chart 16 are based on judgmental estimates for each country based on previous work on the nonaccelerating-inflation rate of unemployment (NA1RU), or the natural rate of unemployment, by IMF staff (much of which is summarized in the box on “Unemployment in Industrial Countries” in the October 1991 World Economic Outlook, pp. 40-41), and on other available estimates such as those reported in Richard Layard, Stephen Nickell, and Richard Jackman, Unemployment: Macroeconomic Performance and the Labor Market (Oxford and New York: Oxford University Press, 1991).
14Greater labor market flexibility allows the U.S. economy to adjust comparatively quickly to adverse disturbances; see Charles Adams, Paul R. Fenton, and Flemming Larsen, “Differences in Employment Behavior Among Industrial Countries.” in Staff Studies for the World Economic Outlook (IMF, July 1986). pp. 1-50.
15See OECD, Employment Outlook (Paris, July 1993), Chapter 5.
16This is demonstrated analytically in Gilles Saint-Paul, “Searching for the Virtues of the European Model,” IMF Working Paper 94/46 (April 1994).
17Recognizing this problem, the French authorities have recently introduced a number of training and apprenticeship programs for the young as well as a subsidy for young, first-time workers.
18See Reza Moghadam, “Labor Market Issues in Belgium: An International Comparison,” IMF Working Paper 93/32 (April 1993), for cross-country evidence of a significant relationship between long-duration unemployment and the generosity of long-term unemployment benefits relative to short-term unemployment benefits.
19See Gilles Saint-Paul, “On the Political Economy of Labour Market Flexibility,” CEPR Discussion Paper 803 (London: Centre for Economic Policy Research, August 1993).
20Empirical studies of the importance of labor market policies and institutions for structural unemployment have often been inconclusive, in part because the structural unemployment rate itself is unobservable, but also because changes in labor market policies and institutions tend to occur infrequently and their impact may be fell only after some time. These problems are less severe in cross-country or panel data, and empirical results using these data are somewhat stronger and more persuasive. For a review of the evidence, see Jorgen Elmeskov, “High and Persistent Unemployment: Assessment of the Problem and Its Causes,” OECD Economics Department Working Paper 132 (Paris, 1993).
21See, for example, Jacques R. Artus, “The Disequilibrium Real Wage Rate Hypothesis: An Empirical Evaluation,” Staff Papers (IMF), Vol. 31 (June 1984), pp. 249-338; and Charles Bean, “Capital Shortage and Persistent Unemployment,” Economic Policy, Vol. 8 (April 1989), pp. 11-53.
22See, for example, Commission of the European Communities, Growth, Competitiveness, Employment.
23See Reza Moghadam, “Why Is Unemployment in France So High?” IMF Working Paper (1994, forthcoming).
24For recent evidence, see Enrique C. Mendoza, Assaf Razin, and Linda L. Tesar, “An International Comparison of Tax Systems in Industrial Countries,” in Staff Studies for the World Economic Outlook (IMF. December 1993), pp. 86-105; they find that a 1 percentage point increase in labor taxes has been associated with a fall in hours worked of up to 1½ percent and an increase of ½ of 1 percentage point in the structural unemployment rate. See also Caroline van Rijckeghem, “Endogeneily in Structural Unemployment Equations: The Case of Canada,” IMF Working Paper 93/94 (December 1993).
25See Dimitri G. Demekas, “Labor Market Institutions and Flexibility in Italy: A Critical Evaluation and Some International Comparisons,” IMF Working Paper 94/30 (April 1994) for a review of the evidence linking restrictions on laying off to hiring in Italy; and Robert J. Flanaghan, “Unemployment as a Hiring Problem,” OECD Economic Studies, No. 11 (Paris, 1988). pp. 123-54.
26In the Netherlands, for example, provisions for disability payments are particularly generous, and one in seven adults of working age collects disability pay. While this does not increase measured unemployment, abuse of the scheme reduces employment and raises the tax burden of those who do work.
27See Sandra Wilson and Arvil Van Adams, “Promotion of Self-Employment for the Unemployed: Experiences in OECD and Transitional Countries” (Washington: World Bank, March 1994). For a discussion of the experience in the United Kingdom with alternatives to income transfers, see Dennis J. Snower, “Converting Unemployment Benefits into Employment Subsidies,” American Economic Review (May 1994, forthcoming).
28See the discussion of unemployment, trade, and protectionism in the October 1993 World Economic Outlook, pp. 62-67.
29See Box 2 in Chapter II for a description of Japan’s recent fiscal stimulus packages.
30A recent Federal Reserve Board study estimates that two-thirds of the stock of U.S. currency is circulating outside of the United States. See Richard Porter, “Estimates of Foreign Holdings of U.S. Currency—An Approach Based on Relative Cross-country Seasonal Variations” (Washington, September 1993). For a discussion or monetary targeting in the context of European integration, see Marcell Cassard, Timothy Lane, and Paul Masson, “ERM Money Supplies and the Transition to EMU,” IMF Working Paper 94/1 (January 1994).
31The Board of Governors are obliged to “maintain long-run growth of the monetary and credit aggregates commensurate with the economy’s long-run potential to increase production, so as to promote effectively the goals or maximum employment, stable prices, and moderate long-term interest rates.” See Federal Reserve Act, Section 2A, 1913 and subsequent amendments. For a review of the conduct of monetary policy in the United States, see Michael Mussa, “U.S. Monetary Policy in the 1980s,” in American Economic Policy in the 1980s, edited by Martin Feldstein (Chicago: University of Chicago Press, 1994), pp. 81-164.
32See Box 2 in the May 1993 World Economic Outlook, p. 26 for a discussion of the explicit inflation objectives recently adopted by the United Kingdom, Canada, Finland, New Zealand, and Sweden. More recently, France has announced an implicit objective of an inflation rate of less than 2 percent.
33Total factor productivity growth is the increase in real output that is not accounted for by increases in capital and labor inputs, and it can be interpreted as a broad measure of the change in economic efficiency. Estimates of total factor productivity are, however, subject to significant margins of error.
34Recent empirical studies have found a negative association between fiscal deficits and economic growth. See, for example, Robert J. Barro, “Economic Growth in a Cross-Section of Countries,” Quarterly Journal of Economics (1991), pp. 407-43. See the October 1992 World Economic Outlook, Chapter IV, for a detailed analysis of macroeconomic policies in the successfully adjusting countries.
35The importance of good governance for successful adjustment was emphasized at the IMF-World Bank Annual Meetings in September 1993. See Michel Camdessus, address to the Forty-Eighth Annual Meeting of the Board of Governors, September 28-30, 1993, in Summary Proceedings (IMF, 1994).
36For evidence on the relation between land ownership patterns and productivity, see Albert R. Berry and William Cline, Agrarian Structure and Productivity in Developing Countries (Baltimore, Maryland: Johns Hopkins University Press, 1979).
37For a survey of the recent literature on the interactions between economic conditions, including income distribution, and the sustainability of reforms, see Carlos M. Asilis and Gian Maria Milesi-Ferrett, “On the Political Sustainability of Economic Reforms,” IMF Paper on Policy Analysis and Assessment, PPAA/94/3 (January 1994).
38For recent evidence on the relation between financial development and growth, see Robert G. King and Ross Levine, “Finance and Growth: Schumpeter Might Be Right,” Quarterly Journal of Economics, Vol. 108 (August 1993), pp. 717-38.
39For an appraisal of adjustment programs in these low-income countries, see Susan Schadlerm Franck Rozwadowski, Siddarth Tiwari, and David Robinson, Economic Adjustment in Low-Income Countries: Experience Under the Enhanced Structural Adjustment Facility, IMF Occasional Paper 106 (September 1993). The recent trend toward the liberalization of financial markets has been encouraging; in Africa the number of countries that maintain positive real interest rates rose from 22 in 1989 to 27 in 1992. See Pierre Dhonte, Jean Clement, Mbuyamu Matungulu, and Dawn Rehm, “Economic Trends in Africa,” IMF Working Paper 93/71 (September 1993).
40See World Bank, The East Asian Miracle: Economic Growth and Public Policy. Policy Research Report (Washington: World Bank; New York: Oxford University Press, September 1993); and Palle Andersen, “Economic Growth and Financial Markets,” Finance and the International Economy, Vol. 7 (1993), pp. 66-91.
41In Korea, informal money markets may also have been important in determining credit allocation. See Sweder van Wijnbergen “Interest Rate Management in LDCs,” Journal of Monetary Economics, Vol. 12, No. 3 (September 1983). pp. 433-52.
42In the high-growth East Asian economies, annual inflation has averaged around 9 percent over the past three decades, compared with 18 percent in low- and middle-income countries.
43See “Economic Implications or Unproductive Public Expenditures” (IMF Fiscal Affairs Department, 1994, forthcoming).
44See Mohsin S. Khan and Manmohan S. Kumar, “Convergence and Public and Private Investment,” IMF Working Paper 93/51 (December 1992), which presents evidence that public investment has a positive impact on growth, but that the effect is considerably smaller than that of private investment.
45Price controls have been used repeatedly in the context of “heterodox” macroeconomic stabilization programs, especially in Latin America, on the assumption that controls can help to stop inflation quickly without raising unemployment. In practice, however, price controls are often used as substitutes for monetary and fiscal policy adjustment. For a survey on the theoretical rationale for price controls, see Pierre-Richard Agenor and Carlos M. Asilis, “Price Controls and Electoral Cycles,” IMF Working Paper 89/93 (November 1993).
46See Rudiger Dornbusch, “The Case for Trade Liberalization in Developing Countries,” Journal of Economic Perspectives, Vol. 6 (Winter 1992), pp. 69-85; and Sebastian Edwards, “Trade Orientation, Distortions, and Growth in Developing Countries,” Journal of Development Economics, Vol. 39 (July 1992). pp, 31-57.
47See Table 6 in the text, and Table 21 in the May 1993 World Economic Outlook. See also Sebastian Edwards, “Trade Policy, Exchange Rates and Growth,” NBER Working Paper 4511 (Cambridge, Massachusetts: National Bureau of Economic Research, 1993), who found that trade impediments have tended to reduce total factor productivity growth.
48Dornbusch, “The Case for Trade Liberalization in Developing Countries.”
49The degree of overvaluation in some African countries in the mid-1980s, as approximately indicated by the premium in informal or parallel markets, was over 300 percent.
50Susan Hickok, “Recent Trade Liberalization in Developing Countries: The Effects on Global Trade and Output,” Quarterly Review, Federal Reserve Bank of New York (Autumn 1993), pp. 6-19.
51The benefits of lower debt servicing are limited to those countries that are servicing their external debts. For countries that are not able to meet their debt interest payments, lower interest rates may not affect actual interest payments, although their nominal obligations and the magnitude of future arrears will be less.
52See Enrique G. Mendoza, “International Evidence on the Macroeconomic Effects of Terms of Trade Disturbances,” IMF Working Paper (1994, forthcoming) for empirical evidence on the importance of terms of trade movements in developing countries.
53For a description of the IMF’s developing country model, see Manmohan S. Kumar, Hossein Samiei, and Sheila Bassett, “An Extended Scenario and Forecast Adjustment Model for Developing Countries,” in Staff Studies for the World Economic Outlook (IMF, December 1993), pp. 47-75.
54The index is calculated by multiplying each external variable with its elasticity, summing the three products and adding 100.
55See Carmen M. Reinhart and Peter Wickham, “Commodity Prices: Cyclical Weakness or Secular Decline?” IMF Working Paper 94/7 (January 1994); and Eduardo Borenzstein and Carmen M. Reinhart, “The Macroeconomic Determinants of Commodity Prices,” IMF Working Paper 94/9 (December 1993).
56See the World Bank’s World Development Report (Oxford and New York: Oxford University Press, 1992).
57See GATT Secretariat, An Analysis of the Proposed Uruguay Round Agreement, with Particular Emphasis on Aspects of Interest to Developing Countries, MTN.TNCAW/122 (Geneva: GATT, November 29, 1993).
58The income loss in the OECD caused by agricultural protection is estimated to be about 1 percent of total OECD GDP. See John P. Martin. Jean-Marc Burniaux, Francois Detorme, Ian Lienert, and Dominique van der Mensbrugghe, “Economy-Wide Effects of Agricultural Policies in OECD Countries: Simulation Results with WALRAS,” OECD Economic Studies, Vol. 13 (Winter, 1989-90). pp. 131-72.
59See Ian Goldin, Odin Knudsen, and Dominique van der Mensbrugghe, Trade Liberalization: Global Economic Implications (Paris: OECD Development Centre; Washington: World Bank, 1993).
60Armenia, Azerbaijan, the Federal Republic of Yugoslavia (Serbia/Montenegro), Georgia, and Tajikistan are all suffering from virtual economic collapse because of wars.
61In early 1994, several countries, notably Belarus, opened negotiations with Russia to rejoin the ruble area.
62The relationship between corporate governance and privatization is discussed in the October 1993 World Economic Outlook, and in Eduardo Borenzstein and Manmohan S. Kumar, “Proposals for Privatization in Eastern Europe,” Staff Papers (IMF), Vol. 38 (June 1991), pp. 300-26.
63For a detailed discussion, see Jack Boorman, Naheed Kirmani, and others, Trade Policy Reform in the Countries of the Former Soviet Union, IMF Economic Reviews, No. 2 (February 1994).
64See Annex II, Benediete Vibe Christensen, The Russian Federation in Transition: External Developments, IMF Occasional Paper 111 (February 1994).
65The G-24 comprises the member countries of the OECD.
66Before the establishment of the G-24 initiative, the European Community committed to loan $1 billion to Hungary.
67Loans provided by Japan to central European countries have been made available as cofinancing of World Bank structural adjustment loans, with disbursements subject to the conditionality attached to those loans. In addition, in 1993 Japan pledged to provide financing parallel to that under IMF stand-by arrangements.
68The analysis and quantitative estimates of the reduction in financial resource transfers from Russia to the rest of the former Soviet Union and the resulting adjustment burden are taken from Thomas Wolf, Warren Coats, Daniel Citrin, and Adrienne Cheasty, Financial Relations Among Countries of the Former Soviet Union, IMF Economic Reviews, No. 1 (February 1994).
69For an extensive discussion of the increasing need for a well-functioning financial sector, see Guillermo A. Calvo and Manmohan S. Kumar, “Money Demand, Bank Credit, and Economic Performance in Former Socialist Economies,” IMF Working Paper 94/3 (January 1994).

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