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Fiscal Dimensions of Sustainable Development

Fiscal Dimensions of Sustainable Development

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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Leanne Hoagland-Smith
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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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