The achievement of sustainable development—combining economic development, social development, and environmental protection—is a key challenge facing the international community. To this end, progress will be needed in a number of different policy areas, with the right mix of policies varying from country to country.
The purpose of this pamphlet is to explore the relationships between fiscal policy—the range of the government’s taxing and spending decisions—
and the economic, social, and environmental aspects of sustainable development. It also addresses how the IMF seeks to promote sustainable development in its fiscal policy advice. Fiscal policy is central to the work of the IMF, whose mandate is to promote international monetary cooperation, the balanced growth of international trade, exchange stability, and orderly exchange arrangements. Fulfilling this mandate is the IMF’s primary contribution to sustainable development.
This pamphlet is the outcome of a collaborative effort of the staff of the Fiscal Affairs Department’s Expenditure Policy Division and Environmental Team. Erwin Tiongson and Shamit Chakravarti provided statistical and computational assistance, and Suzanne Alavi, Amy Deigh, and Meike Gretemann assisted in revising the final version of the pamphlet. The authors are grateful to Teresa Ter-Minassian, Director of the Fiscal Affairs Department, for guidance and suggestions on earlier drafts. Other colleagues in the Fiscal Affairs Department, as well as in other IMF departments, also provided insightful comments on earlier drafts. The pamphlet was edited by Paul Gleason of the External Relations Department and typeset by Choon Lee of the Graphics Section of the Technology and General Services Department. The authors bear the sole responsibility for any remaining errors and omissions.
Fiscal Dimensions of Sustainable Development Prepared for World Summit on Sustainable Development Johannesburg, August 26–September 4, 2002
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International Monetary Fund
(Visit International's Website)
The IMF is an international organization
of 185 member countries. It was
established to promote international
monetary cooperation, exchange stability,
and orderly exchange arrangements; to
foster economic growth and high levels of
employment; and to provide temporary
financial assistance to countries to help
ease balance of payments adjustment.
Since the IMF was established its purposes
have remained unchanged but its
operations—which involve surveillance,
financial assistance, and technical
assistance—have developed to meet the
changing needs of its member countries in
an evolving world economy.
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