Inequality and Gender: the IMFs Policy and Operational work - - PowerPoint PPT Presentation

Inequality and Gender: the IMF’s Policy and Operational work

Stefania Fabrizio International Monetary Fund

WIDER Development Conference Helsinki, September 2018

About the presentation

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1. Why the focus on inequality/gender issues 3. IMF’s engagement with member countries 2. IMF analytical and policy work 5. Examples 6. Going forward 4. How the IMF approaches inequality/gender issues at country level

Resource allocation Productivity Social cohesion In Inequal qualit ity Resource allocation Social cohesion Productivity

Why does the IMF focus on Inequality?

Because it is macro-critical

Growth th and Stabili bility ty

Income inequality Output and productivity Economic resilience Female ale Labor

• r For
• rce

e Partici rticipatio pation Income inequality Economic resilience Output and productivity

Why does the IMF focus on gender?

Because it is macro-critical

Growth th and Stabili bility ty

Analytical and policy work on Inequality: some examples

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Analytical and policy work on gender: some examples

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IMF’s engagement with countries

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Capacity Development Policy Advice

Pilots to explore how best to add value for the membership

Pilots : inequality and gender

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Inequality studies: completed Inequality studies: ongoing Gender studies: completed Gender studies: ongoing

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Fr Framewo amework rk fo for r de dealing aling wit with h in inequ equality ality/gende /gender r is issues sues fr from

• m a m

a macro acroeconomic economic pe persp rspecti ective ve

Focus and Topics on inequality

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❑Comparative analysis of inequality and poverty ❑Income polarization ❑Growth inclusiveness ❑Expenditure composition ❑Subsidy reform ❑Tax progressivity ❑Financial inclusion ❑Rural poverty ❑Regional income inequalities ❑Labor market duality ❑Assessment of reform options ❑Impact of commodities boom-bust cycles ❑Social protection assessment

Focus and topics on gender

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❑ Drivers of female labor force participation ❑ Financial inclusion ❑ Public investment ❑ Labor market reforms ❑ National gender equality plans ❑ Legal barriers ❑ Diversification ❑ Corporate profits ❑ Gender-based violence and harassment ❑ Female entrepreneurship

Gender India: Sanitation and Gender Equality

Bihar Punjab Haryana Assam Uttar Pradesh Jharkhand Delhi West Bengal Orissa Gujarat Madhya Pradesh Goa Uttarakhand Kerala Rajasthan Karnataka Maharashtra Tamil Nadu Andhra Pradesh Himachal Pradesh

40 50 60 70 80 90 10 20 30 40 50 60 70 80 90 100 Female literacy rate (%) Sanitation coverage (%)

Female Literacy Increases with Sanitation Coverage

Bihar Punjab Haryana Assam Uttar Pradesh Jharkhand Delhi West Bengal Orissa Gujarat Madhya Pradesh Goa Uttarakhand Kerala Rajasthan Karnataka Maharashtra Tamil Nadu Andhra Pradesh Himachal Pradesh

10 20 30 40 50 60

10 30 50 70 90 110

Female labor force participation (%) Sanitation coverage (%)

Female Labor Force Participation Increases with Sanitation Coverage

Improving access to sanitation is essential for raising gender equality and economic growth.

Sources: Census of India (2011), IMF staff calculations, and IMF Country Report No. 17/54 (2017 Article IV staff report for India).

India: gender equality and sanitation

Bolivia: commodity cycles and inequality

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Model Data

Change Skills Commodity Prices Fiscal Policy

Change in Inequality During Boom (2000-2005) (Gini Index, In percentage points)

Distributional impact of reforms on both inequality and gender: Argentina

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48 59 49 56 55 68 56 10 20 30 40 50 60 70 80 percentage points

Fema male le Labor bor Force ce Participa ticipation, tion, 1990 1990-20 2014 14

1990 2000 2014

Source: World Bank, Gender Statistics 1.2 7.0 1.8 11.6 2.3 23.3 5 10 15 20 25 Reducing Tax Wedge No discrimination in formal work place Targetted childcare to low-income and poor income families

Policy licy Refor

• rms

ms and d their ir imp mpacts acts

• n female

le labo bor r and on GDP

Change in women's hours worked in the formal sector Change in GDP

IMF’s engagement with countries

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Capacity Development Policy Advice

Training and tools available to both Fund staff and country authorities

Capacity Building

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To Toolkits kits

• Macro-distributional impact of

fiscal reforms

• Gender Budgeting
• Distributional analysis of energy

subsidy reform

Wo Worksho kshops ps and d Tr Training ining

• Courses on inclusive growth,

financial development and inclusion, distributional analysis of policy and reforms

• Peer-learning workshops on

gender budgeting

Te Technical hnical assi ssista stance nce

• Distributional analysis is an

integral part of TA on tax and subsidy reforms

• Gender budgeting

New tool based on SDGE framework

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Framework (19 country studies) Model features

• Dynamic general equilibrium model with

heterogeneous agents incorporating country-specific characteristics

• Households (rural vs. urban)
• Productive sectors (agriculture, manufacturing, services)
• Frictions (differential cost of mobility, segmented financial

markets)

Outcome

• Macroeconomic variables
• Inequality between and within-sectors
• Poverty

Going forward

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• G-20 report on strong, sustainable, balanced and inclusive growth
• Gender and technology
• Role of Gender in financial stability
• Gender diversity and diversification

Analytical/policy work Operational work Toolkits

Expand toolkit set to consider:

• Macro-distributional impact of reforms for more developed economies
• Impact of reforms on gender

Inclusion/gender in country work when macro-critical

Training

• Courses on SDGE framework for modeling the macro and distributional

effects of reforms

THANK YOU