Thursday, October 2, 2008

SA: Fifteen years later

Almost halfway through South Africa’s second decade of freedom, government is taking stock of how far it has gone in achieving the objective of improving the quality of life of all South Africans in their report Towards a Fifteen Year Review .

The review brings particular focus to the past five years, building on conclusions of Towards a Ten Year Review, published in 2003.
The 2008 review aims to answer 3 question:
  1. To what extent has the Government achieved its policy objectives?
  2. Are these the appropriate policy objectives?
  3. What have the past five years brought in terms of progress towards these objectives?.

The themes covered are:

  1. Governance
  2. Social sector
  3. Economic
  4. Justice, crime prevention and security
  5. International relations, peace and security
  6. Targeted groups
  7. Major transversal post-2004 initiatives

Wednesday, October 1, 2008

Doing Business in Angola - Report

Doing Business 2009 is the sixth in a series of annual reports investigating regulations that enhance business activity and those that constrain it.

This paper presents the summary Doing Business indicators for Angola.

The paper includes the following headings:

  • introduction
  • starting a business
  • dealing with licenses
  • employing workers
  • registering property
  • getting credit
  • protecting investors
  • paying taxes
  • trading across borders
  • enforcing contracts
  • closing a business

Tuesday, September 30, 2008

SARB releases

New releases from SARB include:

  • Template on International Reserves and Foreign Currency Liquidity
    Data in this template cover the short-term foreign currency assets of the South African Reserve Bank (SARB) and of the Central Government of South Africa. A wider definition was used up to December 2005. See the Note on the redefinition of gold and other foreign reserves in the balance of payments in the South African Reserve Bank Quarterly Bulletin, December 2005, p. 56-59.

New Financial Economics journal - call for papers

Emerald is launching a new journal called Journal of Financial Economic Policy in 2009 and has sent out a call for papers.
JFEP is devoted to the advancement of the understanding of the entire spectrum of financial policy and control issues and their interactions to economic phenomena.

These include, but are not limited to: Financial Markets Stability, Corporate and Systemic Liquidity Control, Monetary and Fiscal Policy, Banking Stability and Supervision, Public Debt Policy and Management, Regulation and Law, Sovereign Risk and Management, Institutional Organization, and Voting.

Given the wide variety of policy questions, this journal spans a wide range of methodological approaches from the economic and financial theory, from applied econometrics to actuarial science, law and institutional economics and management science.

The editors would like to invite submissions for publication in the inaugural volume of the Journal of Financial Economic Policy.

Articles should be ‘letters’ type submissions of around 2,000 words. All submissions should be sent in Word format to Dr George Christoloulakis at GChristodoulakis@dom01.mbs.ac.uk

Suggested article topics include (but are not limited to) the following:

  • Banking Stability
  • Banking Supervision
  • Banking Policy
  • Financial Markets and Stability
  • Corporate Financial Policy and Liquidity Control
  • Systematic Liquidity Control
  • Private Insurance Policy
  • Fiscal Policy
  • Fiscal Risk Management
  • Public Debt Policy and Management
  • Monetary Policy
  • Regulation and Law
  • Institutional Organization
  • Investment Management Policy
  • Trade Policy
  • Competition Policy
  • Institutional Voting Policy
  • Corporate Governance Policy
  • Crisis Management: Forecasting and Control
  • Sovereign Risk and Management

OECD Statistics

The OECD has released its October Statistics Newsletter, here is what is available in the issue:



1. The Inconvenient Truth about Climate Statistics





2. Remittances sent by recent immigrants in Canada

The study that this article is based on offers a broad cross-national perspective of remittance senders, focusing on individuals who became landed immigrants in Canada in 2000 and 2001.

3. Update of the 1993 System of National Accounts

Some of the major changes are:
• New recording of pension schemes
• Explicit recognition of capital services
• Recognition of the outcomes of Research and Experimental Development (R&D) as fixed assets
• Recognition of offensive weapons and their means of delivery as fixed assets
• Goods for processing to be recorded on a change of ownership basis

4. UNCTAD launches Global Databank on World Trade in Creative Products

An UNCTAD database providing trade statistics on creative goods and services is available to the public as of today at the Creative Economy site The statistics cover about 235 products related to heritage, arts, media and functional creations.

5. New OECD Dataset on Patents by Regions

The data have been “regionalised” at a very detailed level so that more than 5000 regions
are covered across most OECD countries plus China and India.
REGPAT allows patent data to be used in connection with other regional data such as GDP or labour force statistics, and other patentbased information such as citations, technical fields and patent holder’s characteristics.

6. Release of OECD Health Data 2008 plus Working long-hours in New Zealand

The 2008 edition provides new data on a number of important topics, including:
• the number of foreign-trained doctors in OECD countries;
• more detailed information on nurses, usually the most numerous health care providers in OECD countries;
• the incidence of a number of vaccine-preventable diseases (such as measles, pertussis and
Hepatitis B), complementing existing series on childhood vaccination rates for these diseases which are part of the health care quality indicators (HCQI) data set; and
• the number of elderly people receiving long-term care at home or in institutions.

Ripples felt across the world

Copyright: ilco



The financial crises in the US has made waves across the globe. Barry Sargeant from Moneyweb made a brief synopsis of the global ripples:

  • The Dow Jones Industrials fell as much as 700 points in midday trading after it was announced that the government would not bail out the industry for an estimated $700 billion
  • in the UK, Bradford and Bingley, Britain's ninth-biggest mortgage provider, was nationalised
  • In Iceland the government seized control of Glitnir bank – the third largest in the country
  • Fortis, a large Benelux banking group, has been saved by the governments of Belgium, Luxembourg and the Netherlands when they announced that they were to invest €11.2bn (£8.9bn) to support the group
  • In Europe, Dexia's stock price was down 29%, while in the US, Wachovia fell 27%, and Sovereign Bancorp lost 52% of its value.
  • "The Nikkei Stock Average of 225 companies was down 3.3% midday, while benchmark indexes in Australia and New Zealand were down 2.9% and 3.1% respectively. Taiwan's stock market, open for the first time since Friday due to a typhoon, was down 4.3%, while indexes in Singapore and Hong Kong were both down 2.4%. China's markets remained closed for a week-long holiday." more
  • In Germany, the government provided €35bn in credit guarantees to Hypo Real Estate Bank,
  • And in France president Nicolas Sarkozy has assured citizens that the government would protect depositors from any potential losses brought on by the credit crunch
  • Among individual country indices, China was down 55%, the UK by 28%, Germany by 29%, Japan by 32%, and France by 29%.
  • The world banks index has fallen 38%, while world materials, which includes resources such as mining and oil, is off by 35%.

For more news articles on the effect of the crises, click here.

Monday, September 29, 2008

IMF new releases



New releases for the IMF:

Working Papers
  • Working Paper No. 08/224: Systemic Banking Crises: A New Database
    Author/Editor: Laeven, Luc; Valencia, Fabian
    Summary: This paper presents a new database on the timing of systemic banking crises and policy responses to resolve them. The database covers the universe of systemic banking crises for the period 1970-2007, with detailed data on crisis containment and resolution policies for 42 crisis episodes, and also includes data on the timing of currency crises and sovereign debt crises. The database extends and builds on the Caprio, Klingebiel, Laeven, and Noguera (2005) banking crisis database, and is the most complete and detailed database on banking crises to date.

Policy Papers

  • The Role of the IMF in Low-Income Countries - Background Paper
    Summary: This paper provides background material to the Board paper on "The Role of the IMF in Low Income Countries." The main paper outlines a comprehensive approach for Fund engagement with Low-Income Countries (LICs) going forward. The background material in this paper provides a comprehensive stock-taking of the Fund's involvement and policy advice in LICs since the establishment of the Poverty Reduction and Growth Facility (PRGF) in 1999.
  • The Role of the Fund in Low-Income Countries
    Summary: This paper takes stock of the work over the past four years on the role of the Fund in LICs, and outlines a comprehensive approach for Fund engagement. It responds to the Board's request for a synthesis of the full range of policy decisions and developments related to the Fund's work in LICs since 2004. A key purpose is to ensure that, as the Fund is refocusing its work, LIC-related objectives and responsibilities are well articulated and understood.
  • Food and Fuel Prices-Recent Developments, Macroeconomic Impact, and Policy Responses-An Update
    Summary: This report updates the macroeconomic assessment of the impact of global food and fuel price increases provided in the IMF June 2008 Board paper: Food and Fuel Prices-Recent Developments, Macroeconomic Impact, and Policy Response. Food and oil prices peaked in early summer-in particular, oil prices surged to levels envisaged under the most adverse scenario presented in the June paper. Against this background, the effects of higher prices on the balance of payments, budgets, and domestic prices intensified and a large group of low- and middle-income countries is experiencing a substantial weakening of their balance of payments and higher inflation. These findings reinforce the importance of adopting appropriate policies to maintain macroeconomic stability while protecting the poor.

Country Reports

Surveys

  • IMF Says Crisis Marks Tectonic Shift in Financial Markets
    The upheaval from the U.S. financial crisis is like a tectonic shift on a scale not seen in the financial systems around the world, the IMF's John Lipsky says. He tells a California conference that a serious downturn in the global economy can be avoided.
  • Fifty Countries Still Hurt by Food, Fuel Crisis, IMF Says
    Although food and fuel prices have eased from recent peaks, some 50 low and middle-income countries have suffered a significant "shock" and will remain at risk through 2009 because of deteriorating foreign exchange reserves, rising inflation, and slowing world growth, according to an IMF study.
  • New Channels Spread U.S. Subprime Crisis To Other Markets
    New channels spread the mid-2007 turbulence in the U.S. subprime mortgage market to other U.S. and foreign markets, IMF research indicates. Financial innovations and closer links between banks helped transform what started as a liquidity crisis into a solvency issue for financial institutions.
  • Africa Strives to Preserve Recent Gains
    Facing high food and fuel prices, some African countries are in danger of seeing the progress achieved in recent years slip away, Antoinette Sayeh tells IMF Survey online.

OECD insurance statistics: towards a global framework


The OECD’s global insurance statistics project aims at enhancing the timeliness, relevance, policy impact and global reach of insurance statistics and indicators. The results of the second year of fast track data collection are now available.

Selected indicators:
Data can be downloaded in Excel format. Indicators marked with a (F) are available for all OECD countries.

  • Total number of companies, 2007 (Excel file): Includes all insurance companies licensed or authorised in the reporting country, including professional reinsurers, whether or not these are controlled, but excluding any statutory system of social security administered by the State.
  • Number of life companies, 2007 (Excel file): Life and non-life categories follow the definitions used under national law.
  • Number of non-life companies, 2007 (Excel file): Life and non-life categories follow the definitions used under national law.
  • Number of composite companies, 2007 (Excel file): A composite company is a company which deals with both life and non-life business.
  • Number of reinsurance companies, 2007 (Excel file)
  • Number of employees, 2007 (Excel file): Employees of insurance companies include staff (full-time or part-time) employed in the insurance industry. Employees of intermediaries include brokers or agents and their staffs, excluding intermediaries who may sell insurance but are not directly involved in the insurance industry (e.g. bank managers, solicitors, garage owners).
  • Total gross premiums, 2007 (F) (Excel file): Gross premiums, which represents total insurance premium written in the reporting country, is a major indicator of the importance of insurance industry in the economy of each country.
  • Market share in the OECD, 2007 (F) (Excel file, Life / Non-life): This indicator measures the importance of the national insurance market of each OECD country as compared to the whole OECD insurance market.
  • Density, 2007 (F) (Excel file, Total density): This indicator is calculated by dividing direct gross premiums by the population and represents the average insurance spending per capita in a given country.
  • Penetration, 2007 (F) (Excel file, Total penetration): This is the ratio of direct gross premiums to gorss domestic product, which represents the relative importance of the insurance industry in the domestic economy.
  • Life insurance share, 2007 (F) (Excel file, Figure): This is the ratio of gross life insurance premium to total gross premium, which measures the relative importance of life insurance as compared to non-life insurance.
  • Premiums per employee, 2007 (Excel file): This indicator of the relative efficiency of a national insurance inductry is calculated by dividing direct gross premiums by the number of employees in insurance companies.
  • Retention ratio, 2007 (Excel file): This is the ratio of net written premiums to total gross premiums. This ratio represents the proportion of retained business and thus, indirectly, the importance of reinsurance for domestic insurance companies.
  • Ratio of reinsurance accepted, 2007 (Excel file): This is calculated by dividing reinsurance accepted by total gross premiums and provides an indication of the significance of reinsurance accepted in the national insurance market.
  • Market share of foreign-controlled companies and branches/agencies of foreign companies in the domestic market, 2007 (Excel file): Gross premiums basis.
  • Market share of branches/agencies of foreign companies in the domestic market, 2007 (Excel file): Gross premiums basis.

Draft IFRS standards available for comment




The International Accounting Standards Board (IASB) today published for public comment an exposure draft of proposed amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards.

The proposals address the retrospective application of IFRSs in selected areas and are aimed at ensuring that entities applying IFRSs will not face undue cost or effort in the transition process.

The exposure draft proposes:
• to exempt companies from retrospective application of IFRSs for oil and gas assets using the full cost method and for operations subject to rate regulation.
• to exempt companies with existing leasing contracts accounted for in accordance with IFRIC 4

Determining whether an Arrangement contains a Lease from reassessing the classification of those contracts according to IFRSs when the same classification has previously been made in accordance with national GAAP.


The exposure draft Additional Exemptions for First-time Adopters (proposed amendments to
IFRS 1) is open for comment until 23 January 2009.

How to submit a Comment Letter :

  • Go to the Comment Letters page.
  • Click Submit Comment Letter button.
  • Log on using your subscription to eIFRS. If you do not have a subscription, and have not previously registered, you will be required to register. Registration is free and only takes 5 minutes.
  • Click Continue button.
  • Locate your Comment Letter on your computer using the Browse button and click Upload button when done.
  • Click Continue button.

Frye Leadership Institute accepting program nominees for 2009

The Frye Leadership Institute is designed to develop the next generation of higher education leaders emerging from IT and library backgrounds.

Frye helps participants develop:
  • Habits of mind that help them think strategically and communicate clearly with diverse audiences
  • A broad perspective on higher education, its values, issues, and challenges
  • Confidence in their ability to address complex issues A strong network of colleagues and friends

From May 31 to June 11, 2009, participants will gather at Emory University for an intensive residential experience that exposes them to higher education leaders and luminaries from around the country.

A significant amount of personal and professional growth results from the networking and group exercises that bring a diverse set of international participants together to share, explore, and learn.

Presentations are intermixed with case studies, brainstorming, role-playing, problem solving, and reflection

Nominations for the 2009 Program Are Due November 14

The selection process is highly competitive. Applicants must first be nominated by a senior institutional officer.

StatsSA - new account launched & get the detail on the Household survey


Tourism Satellite Account Launch
Stats SA is releaseing the first experimental Tourism Satellite Account (TSA) for South Africa in March 2009.
To mark the birth of the first experimental TSA for South Africa, StatsOnline invites you to register your interest in this publication. In return for your registration, they will send you the first release at embargo to your email box.
Click here to register.

General Household Survey (GHS) 2007
The data and metadata for the General Household Survey (GHS) 2007 are now available on CD. To order please contact:Joan Lindeque at 012 3108619.

The data and metadata is also available on StatsOnline . Click "Interactive data" and then "Explore micro data".

Statkon closing dates

Copyright: lusi

STATKON has announced the following closing dates:
Submission of new data sets
Friday, 31 October 2008, 14:00
New requests on existing data
Friday, 7 November 2008
Assistance with research and questionnaire design
27 November 2008
STATKON will re-open:
Monday, 19 January 2009 for assistance with research and questionnaire design, as well as acceptance of new data sets,
and on Monday, 2 February 2009 for data analysis.

African journal archive planned

Sabinet is trying to establish a digital archive of journals that have been published in Africa.

The archive will contain retrospective content with the aim of digitizing where possible, back to the first issue. The collection must be useful to researchers, scholars, professionals and anyone interested in accessing core African journal literature.

They are conducting a survey regarding the content of the archive. Please assist them by filling in the online survey and suggest topics and journals that you would like to see in such an archive

Closing date for the survey: 10th October 2008.

University news from Africa

AFRICA: Unesco conference discusses quality assurance Jane Marshall
How to achieve the Millennium Development Goals through higher education and how to improve the quality of higher education in Africa came under discussion in Dakar this month. Delegates gathered in the Senegalese capital for the Third International Conference on Quality Assurance in Higher Education in Africa, organised by the Unesco Bamako Cluster Office and Unesco's regional bureau for education Africa (Breda).





NIGERIA: Panic grips students in illegal universities Tunde Fatunde
The National Universities Commission of Nigeria recently published a list of 31 'illegal' universities - including offshore campuses of foreign universities - that it has not approved, prompting panic in the affected institutions. Students face a bleak future if their qualifications are not recognised, teachers are no longer sure of their jobs while governing councils fear being prosecuted and have been lobbying key people in the legislative and executive arms of Nigeria's 36 states to have their universities recognised and accredited.

NIGERIA: Clipping the wings of degree mills Peter Okebukola
Nigerian higher education system, which has 297 institutions (universities, polytechnics and colleges of education) and enrols more than 3.5 million students, is the most expansive in Africa. Highly respected in the past, the system is now sadly paled - among other quality-depressing factors by activities of degree mills.


ZIMBABWE: Academics and students doubt power deal Clemence Manyukwe
Academics and students in Zimbabwe have greeted a political power-sharing deal struck earlier this month with caution. Students see little chance of the settlement between long-ruling Zanu-PF party and the rival Movement for Democratic Change (MDC) succeeding, mainly owing to mistrust of autocratic President Robert Mugabe. But lecturers hope it will deliver academic freedom and a return of donors who cut support as oppression deepened

ZAMBIA: University offers free Aids treatment Clemence Manyukwe
The University of Zambia is offering anti-retroviral treatment to students and staff free of charge to reduce the impact of the HIV-Aids pandemic on the African country's oldest institution of higher learning and the skilled graduates it produces.

SENEGAL: Anti-brain drain computing grid installed
Cheikh Anta Diop University (UCAD) in Dakar is the first university in sub-Saharan Africa to benefit from installation of a computing grid under the Reversing Brain Drain into Brain Gain for Africa project jointly run by Unesco, Hewlett-Packard and the CNRS, France's national scientific research centre. The new infrastructure will make it easier for researchers at the university to collaborate with colleagues abroad, and give them access to considerable information technology resources.


ANGOLA: Launch of 'knowledge and research' portal
The Ministry of Science and Technology has launched a 'knowledge and research' portal, accessible to the public, on which postgraduate works may be logged, researchers can contact one another, and academic and scientific information will be published.

University news from the West


THE Awards 2008: shortlist
It is four years since the launch of the Times Higher Education Awards.For the 2008 Awards, more than 130 institutions have submitted an impressive 500-plus entries. As always, shortlisting has been a difficult task, but the entries in the 18 categories paint a picture of a higher education sector that is innovative, imaginative and inspirational

Howdy partners
As state funding for public education plummets, US universities are forging mutually beneficial alliances at local level. Jon Marcus reports


SPECIAL SERIES: How universities help fight crime Keith Nuthall
It's the mother of clichés: crime pays. But, happily for many of the world's top universities, this is sometimes true. With commercial and financial crime becoming ever more complex, academics are responding to demand and becoming experts on a subject that the private and public sectors want to understand. In the first of an occasional series of articles, University World News this week takes a look at some of the better-known North American academics in a cutting edge and developing field.

US: Experts tackle commercial criminals Monica Dobie
Companies fighting commercial crime are always on the lookout for new resources and tools to deal with the problem. Where better to look than the world's best universities in America?

EUROPE: EIT starts work with first board meeting Keith Nuthall
The often controversial European Institute of Innovation and Technology has begun operations, with its newly appointed governing board having its first meeting and the European Commission claiming it will help close Europe's research spending gap compared with the United States.

INDIA: Big grant for biomedical research Subbiah Arunachalam
Biomedical research in India is in for good times. The UK-based Wellcome Trust, the world's largest private sector funding agency for biomedical research, has joined with India's Department of Biotechnology to create a new biomedical research career programme. The £80 million (US$148.3 million), five-year partnership will not only boost cutting-edge biomedical research but also complement the recent Wellcome Trust investment to support public health research in the country.

RUSSIA: Study into training for oil and gas industry Nick Holdsworth
Russia's ability to produce specialist graduates for the oil and gas industries will be put under the spotlight in a new European Union-funded comparative study. The six-month investigation, Building Capability in Russian Educational Institutions, is being put out to tender and is expected to be ready to start next year.

US: Investigating collaboration in graduate education
The American Council of Graduate Schools* is to investigate international collaborations in graduate education, following the award of a $200,000 grant from the National Science Foundation. The study will include joint and dual degrees, and student and faculty exchange programmes.


New Questions on Women, Academe and Careers
Top scholars gather to share research findings and works in progress that explore why gender gaps persist in the professoriate and other prestigious jobs on campuses.

Did My Job Disappear?
Either in the classroom or at career services, top business schools scramble to counsel students and recent alumni whose job prospects may have taken a hit with the recent shakeups on Wall Street.

Covering Up or Scaring Off?
High school counselors remain divided on what they should tell colleges about the disciplinary records of applicants. Should admissions officers know if potential students were suspended?

The Competition to Be Transparent
Long criticized for providing too little information about their prices and performance, college groups are now pouring (often overlapping) information onto the Internet.

Planning for Contraction
Timothy Burke looks at the changing economic landscape for higher education -- and sees a coming period of relative austerity.

Can Higher Education Regulate Itself?
Amid "pause" in federal push to toughen oversight of campuses and accreditors, academic leaders begin discussion of how to persuade public (and elected officials) that colleges can govern themselves.

I'll Take My Lecture to Go, Please
Comprehensive study finds that students overwhelmingly prefer having their lectures available online, either for remote access or for later viewing.



It's All About Teaching - Latest NYT Magazine Education Issue steven bell
The New York Times Magazine fall education issue is now available online and this issue's theme is "It's All About Teaching". From the issue description: Does teaching make you a bad writer ? Could it make you a good president ? How would you teach on YouTube ? How would you teach in Dubai ? How can you teach with ... style ? From Alaska to Alabama to the Persian Gulf , we look at the mysteries of teaching in all its variety. There's too much here to describe it all so just take a look for yourself.

IHEs Improve Their Environmental Friendliness steven bell
Two out of three colleges and universities are more environmentally friendly than they were a year ago, according to a leading annual survey, as students press for more sustainable practices on their campuses. Just 15 schools received the highest grade. Colleges were graded on a range of factors - administration, climate change and energy, food and recycling, green building, student involvement, transportation, endowment transparency, investment priorities, and shareholder engagement.

Tuesday, September 23, 2008

European Company Information Database



During its last meeting in Porto, the ECCBSO 3rd Working Group revealed the latest update on the project, reaching a new milestone in the creation of a company information database (ERICA - European Records of IFRS Consolidated Accounts).


Build in co-operation with central banks across Europe, ERICA is a database and a filing and storage solution for company balance sheets that are created with a standardised common digital reporting format based on XBRL (eXtensible Business Reporting Language) and on International Financial Reporting Standards (IFRS).


As European companies have to submit financial information (for consolidated amounts) based on the same accounting standards (IFRSs) and in the event that they use the same electronic format (XBRL), ERICA will give users instant access to companies’ financial information and make it possible to compare them easily. In the initial stage ERICA, as a proof of test (with anonymous references), contains data from about 200 non-public companies throughout Europe. In line with the European Commission Transparency Directive, ERICA is publicly available.

IMF Updates


The IMF recently added the following working papers and surveys:


  • Banking Structure and Credit Growth in Central and Eastern European Countries Working Paper No. 08/215. Author/Editor: Aydin, Burcu
    Summary: Recent developments have increased questions about vulnerabilities in Central and Eastern European Countries (CEE) that are experiencing credit booms. This paper analyzes the role of foreign-owned banks in these credit booms. The results show that the CEE countries depend on foreign banks, and these foreign banks depend on interbank funding. Lending by foreign banks seems driven by economic growth and interest rate margins. This lending appears independent of economic but not financial conditions in the foreign bank's home country.

  • Trade Elasticities in the Middle East and Central Asia: What is the Role of Oil? Working Paper No. 08/216. Author/Editor: Hakura, Dalia ; Billmeier, Andreas
    Summary: The analysis in this paper suggests that import and export volume elasticities are markedly lower in oil-exporting Middle East and Central Asian countries than in non-oil countries in the region. A key implication of this finding is that a real appreciation of the exchange rate in oil-exporting countries would achieve little in terms of expenditure switching: an appreciation does not boost imports and non-oil exports constitute only a small share of GDP and total trade in these countries. Therefore, while a real appreciation lowers the current account surplus of oil-exporting countries through valuation effects, the contribution to lowering global imbalances may be more limited.

  • Public Financial Management and Fiscal Outcomes in sub-Saharan African Heavily-Indebted Poor Countries. Working Paper No. 08/217. Author/Editor: Prakash, Tej ; Cabezon, Ezequiel
    Summary: This paper examines, in a formal econometric framework, the linkages between public financial management and fiscal outcomes in sub-Saharan African countries. Similar analyses have been done for Latin America, Europe, and the United States, but none in the context of low-income countries. Using public financial management indicators, as measured in two recent assessments related to the Heavily-Indebted Poor Countries Initiative, this study shows that improving public financial management leads to better fiscal outcomes, as measured by the overall fiscal balance and external debt levels, after controlling for other characteristics that might alter fiscal outcomes.

  • The Impact of Public Capital, Human Capital, and Knowledge on Aggregate Output. Working Paper No. 08/218. Author/Editor: Abdih, Yasser ; Joutz, Frederick L.
    Summary: This paper investigates the impact of public capital on private sector output by testing and estimating an aggregate production function for the U.S. economy over the postwar period augmented to include the stock of public capital as an additional factor input. We use patent applications to proxy for knowledge/technology stocks and adjust labor hours for changes in human capital or skill. Using Johansen's (1988 and 1991) multivariate co-integration analysis, we find a positive and significant long run effect of public capital, private capital, skill adjusted labor, and technology/ knowledge on private sector output. We find that public capital accounts for about half of the post-1973 productivity slowdown, but only plays a minor role in the partial recovery of labor productivity growth since the mid 1980s. The largest contribution to that (partial) recovery comes from the knowledge stock and human capital.

  • An Analysis of So-Called Export-led Growth. Working Paper No. 08/220. Author/Editor: Yang, Jie
    Summary: The stylized fact that strong economic growth is usually accompanied with strong export growth leads many people to conclude that the export sector is the main driving force behind those episodes. The model in this paper, however, shows that the non-tradable sector may also generate high economic growth together with high export growth. Evidence shows that out of 71 "so-called" export-led growth episodes, only 37 of them are consistent with the "exports driving growth" hypothesis. Most of the remaining episodes (24 cases) experienced significant real exchange rate depreciation and are more likely to be characterized by "growth driving exports".

  • Are Weak Banks Leading Credit Booms? Evidence from Emerging Europe. Working Paper No. 08/219. Author/Editor: Tamirisa, Natalia T. ; Igan, Deniz
    Summary: This paper examines the behavior of bank soundness indicators during episodes of brisk loan growth, using bank-level data for central and eastern Europe and controlling for the feedback effect of credit growth on bank soundness. No evidence is found that rapid loan expansion has weakened banks during the last decade, but over time weaker banks seem to have started to expand at least as fast as, and in some markets faster than, stronger banks. These findings suggest that during credit booms supervisors need to carefully monitor the soundness of rapidly expanding banks and stand ready to take action to limit the expansion of weak banks.

  • IMF Policy Paper: Heavily Indebted Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI) - Status of Implementation
    Summary: This report provides an update on the status of implementation, impact and costs of the Enhanced Heavily Indebted Poor Country (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI). With a view to the upcoming Financing for Development meetings in Doha, the report not only reports on recent progress since mid-2007, but also on developments since the Monterrey Consensus recommendations on external debt relief.

  • Commodities and the Market Price of Risk. Working Paper No. 08/221. Author/Editor: Roache, Shaun K.
    Summary: Commodities are back following a stellar run of price performance, attracting financial investor attention. What are the fundamental reasons to hold commodities? One reason is the exposure offered to underlying risk factors. In this paper, I assess the macro risk exposure offered by commodity futures and test whether these risks are priced, using Merton's (1973) inter temporal capital asset pricing model for a sample of commodity prices covering the period January 1973 - February 2008. I find that commodity futures offer a hedge against lower interest rates and that investors are willing to accept lower expected returns for this position. Although some commodities are also a hedge against U.S. dollar depreciation, this risk is not priced.

  • IMF Policy Paper: Implementation of the Basel Core Principles for Effective Banking Supervision - Experience with Assessments and Implications for Future Work
    Summary: This paper reviews the experience to date in assessing countries' compliance with the Basel Core Principles for Effective Banking Supervision (BCP). This review is based on 136 assessments conducted under the FSAP/OFC programs, using the methodology associated with the 1997 version of the BCP. It follows earlier reviews presented to the Board in 2000, 2002, and 2004. The Fund has developed a strong collaborative relationship with the Basel Committee in promoting financial stability, in particular, in its work through the FSAP program in assessing (together with the Word Bank) the quality of countries' supervisory structures. Experience gained from these assessments are also being reported back to the Committee through the Fund's participation in Basel working groups, and staff has also been actively involved in the update of the BCP in 2006, with the objective of maintaining the BCP's relevance as a global standard of good practice.

  • IMF Survey: Financial Crisis Weighs on Global Economy
    The crisis in U.S. financial markets is raising uncertainty and dampening growth prospects around the world, but the IMF still expects a gradual economic recovery during 2009, IMF Managing Director Dominique Strauss-Kahn says.

  • Macroeconomic Effects of EU Transfers in New Member States. Working Paper No. 08/223. Author/Editor: Allard, Céline ; Choueiri, Nada ; Schadler, Susan ; van Elkan, Rachel
    Summary: Large inflows from the European Union to the New Member States are likely to significantly impact macroeconomic outcomes. In this paper, we use the IMF's Global Integrated Monetary and Fiscal model (GIMF) to analyze the impact of the transfers and show the conditions under which they would help speed up convergence. We find that the EU funds need to be directed predominantly to investment rather than to income support and that to best accompany the EU fund inflows, the policy-mix would need to combine counter-cyclical policy with a strong commitment to the existing monetary regime.

Monday, September 22, 2008


Financial Management of Parliament Bill

The National Treasury and SARS recently presented to the Parliamentary Portfolio Committee on Finance the Draft Financial Management of Parliament Bill: finalisation and the Double Tax Agreement with Netherlands: for approval for Ratification by the Treasury and by SARS (both bodies had separate presentations prepared).

Double Tax Convention and Protocol with The Netherlands: National Treasury (NT) And South African Revenue Services (SARS) briefings and requests to ratify
Ms Yanga Mputa, Director: Tax Policy Unit, National Treasury, briefed the Committee on the request for ratification of the tax treaty with the Netherlands.

She took the Committee through the treaty ratification process. She explained that before any tax treaty could come into force, it had to be ratified by Parliament. This particular Treaty was the renegotiation of an existing tax treaty.

The first treaty between South Africa and the Netherlands came into force on 20 January 1972. The revised tax treaty signed on October 2005 would terminate that previous tax treaty. It had been ratified already by the Netherlands, but South Africa delayed ratification pending renegotiation of the article dealing with the taxation of dividends, due to the proposed changes to South African domestic tax legislation, particularly the conversion of Secondary Tax on Companies (STC) to a dividend tax at shareholder level. The revised tax treaty also addressed certain aspects that were not present in the old treaty.

She also reported the figures for the investment flows and trade flows between South Africa and the Netherlands.Mr Ron van der Merwe, Senior Manager: International Treaties, South African Revenue Services (SARS) discussed the technical provisions of the tax treaty.

The purpose of these agreements was to remove barriers to cross border trade and investment. This was done by eliminating the possibility of double taxation, creating certainty of tax treatment, reducing withholding tax rates, dealing with exchange of information between authorities, assisting in tax collection, the resolving of disputes and ensuring consistent interpretation.

As background, he outlined the ways in which treaties removed tax barriers.
His presentation consisted of two parts:
  • The Ratification of the South Africa – Netherlands Double Taxation Convention and
  • the Ratification of the South Africa – Netherlands Protocol amending the Double Taxation Convention.

The Ratification of the South Africa – Netherlands Double Taxation Convention
This part referred to the original agreement signed in 2005. The treaty closely followed the Organisation for Economic Co-operation and Development (OECD) Model Convention, which formed the foundation for the vast majority of Double Taxation Agreements (DTAs) worldwide. A number of the articles were different from the normal South African approach .

Manual staying on

According to Bloomberg's Nasreen Seria and Mike CohenMinister Trevor Manual is not planning on resigning:

Finance Minister Trevor Manuel won't resign after President Thabo Mbeki was told to quit by the ruling African National Congress.
"The minister is not resigning," his spokeswoman Thoraya Pandy said by phone from Johannesburg yesterday (SUBS SUNDAY). "I spoke to him this morning, and there was no resignation.''

The leadership of the ANC ordered Mbeki to quit, eight days after a High Court judge suggested he pressured prosecutors to pursue corruption charges against ANC leader Jacob Zuma, whom Mbeki fired in 2005. Manuel, 52, has been finance minister since 1996, overseeing the economy's longest expansion on record.

"He's a member of the ANC and will abide by their decisions," Pandy said.
"We assume all employees will remain where they are,'' ANC Secretary General Gwede Mantashe told reporters in Johannesburg. "We want markets to be sure about where we going. We want to ensure that there's certainty, that's why we've taken this decision.''

Public Enterprises Minister Alec Erwin will announce any decision he makes on whether he stays through the ANC, his spokeswoman Vimla Maistry said. Erwin, who was first appointed Trade Minister in former president Nelson Mandela's cabinet in 1994, backed Mbeki in his failed bid to be re-elected leader of the ANC in December.

"The critical question for the economy is whether there will be policy continuity," Goolam Ballim, chief economist at Standard Bank, said in an interview from Johannesburg late on Saturday. "The day-to-day governing of South Africa could enter a stage of inertia which would have an immediate impact on financial markets.''

"The rand may come under pressure because of the increased uncertainty," Garth Mackenzie, the head of derivatives trading at BoE Stockbrokers, said. "The currency and bond markets will react the strongest."

Currency Converter

News analysis

StatsOnline: Latest Key Findings

Counter