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Cover Staff Discussion Notes
Front Matter
Ms. Kalpana Kochhar, Ms. Catherine A Pattillo, Ms. Yan M Sun, Mrs. Nujin Suphaphiphat, Mr. Andrew J Swiston, Mr. Robert Tchaidze, Mr. Benedict J. Clements, Ms. Stefania Fabrizio, Valentina Flamini, Ms. Laure Redifer, and Mr. Harald Finger

. Water Stress and Intensity 5. Water Heat Maps 6. Water Stress and Underlying Factors 7. Water Subsidies by Country Groups and Regions 8. Distribution of Water Price Subsidies by Income Group 9. Costs Related to Depletion Externality in Selected Economies 10. Ratio of Non-Revenue Water Losses of Public Water Utilities 11. Household Expenditure on Water by Income Group 12. Water Withdrawal for Agricultural Use and Diesel Retail Price TABLES 1. World Population, GDP, and Water Withdrawals 2. Water Withdrawals in 2010: Top Ten Countries

Keywords:
SDN; water use; water resource; country water price subsidy; cost recovery; demand management; natural resource; water withdrawal
Cover Staff Discussion Notes
Is the Glass Half Empty Or Half Full?
Issues in Managing Water Challenges and Policy Instruments1
Ms. Kalpana Kochhar, Ms. Catherine A Pattillo, Ms. Yan M Sun, Mrs. Nujin Suphaphiphat, Mr. Andrew J Swiston, Mr. Robert Tchaidze, Mr. Benedict J. Clements, Ms. Stefania Fabrizio, Valentina Flamini, Ms. Laure Redifer, and Mr. Harald Finger

measure that encompasses domestic, agricultural, and industrial use of water. But water withdrawals do not properly capture the intensity of recycling or the impact on water quality. 21. Global water withdrawals have increased exponentially as a result of rising population and economic growth . Estimates dating back to the year 1700 suggest that global water withdrawals have risen by a factor of 40 ( Shiklomanov 2000 ), far exceeding the 11-fold increase in population over the same period ( Table 1 ). The other primary factor—increasing economic activity and income

Keywords:
SDN; water use; water resource; country water price subsidy; cost recovery; demand management; natural resource; water withdrawal; IMF staff calculation; economic value; water subsidy; wastewater cost; OECD country
Cover Staff Discussion Notes
Is the Glass Half Empty Or Half Full?: Issues in Managing Water Challenges and Policy Instruments
Ms. Kalpana Kochhar, Ms. Catherine A Pattillo, Ms. Yan M Sun, Mrs. Nujin Suphaphiphat, Mr. Andrew J Swiston, Mr. Robert Tchaidze, Mr. Benedict J. Clements, Ms. Stefania Fabrizio, Valentina Flamini, Ms. Laure Redifer, and Mr. Harald Finger
This paper examines water challenges, a growing global concern with adverse economic and social consequences, and discusses economic policy instruments. Water subsidies provided through public utilities are estimated at about $456 billion or 0.6 percent of global GDP in 2012. The paper suggests that getting economic incentives right, notably by reforming water pricing, can go a long way towards encouraging more efficient water use and supporting needed investment, while enabling policies that protect the poor. It also discusses pricing reform options and emphasizes an integrated and holistic approach to manage water, going beyond the water sector itself. The IMF can play a helpful role in ensuring that macroeconomic policies are conducive to sound water management.
Keywords:
SDN; water use; water resource; country water price subsidy; cost recovery; demand management; natural resource; water withdrawal; Water; subsidies; externalities; public utilities; pricing reform; Water resources; Infrastructure; Agricultural sector; Water subsidies; Global; South Asia; Middle East; Sub-Saharan Africa
Cover IMF Working Papers
How Should Shale Gas Extraction Be Taxed?
Philip Daniel, Alan Krupnick, Ms. Thornton Matheson, Mr. Peter J. Mullins, Ian W.H. Parry, and Artur Swistak
This paper suggests that the environmental and commercial features of shale gas extraction do not warrant a significantly different fiscal regime than recommended for conventional gas. Fiscal policies may have a role in addressing some environmental risks (e.g., greenhouse gases, scarce water, local air pollution) though in some cases their net benefits may be modest. Simulation analyses suggest, moreover, that special fiscal regimes are generally less important than other factors in determining shale gas investments (hence there appears little need for them), yet they forego significant revenues.
Keywords:
WP; government; price; shale gas; air pollution; environmental risks; corrective taxes; liability; fiscal regime design; simulated projects; marginal effective tax rates; State common law; gas price; government share; fiscal regime; water quality; pre-existing gas pipeline infrastructure; supply curve; processing facility; regime design; Fuel prices; Natural gas sector; Oil prices; Oil; North America; Europe
Cover Departmental Papers
Feeling the Heat: Adapting to Climate Change in the Middle East and Central Asia
Mr. Christoph Duenwald, Mr. Yasser Abdih, Mrs. Kerstin Gerling, Vahram Stepanyan, Abdullah Al-Hassan, Gareth Anderson, Ms. Anja Baum, Mr. Sergejs Saksonovs, Lamiae Agoumi, Chen Chen, Mehdi Benatiya Andaloussi, Sahra Sakha, Faten Saliba, and Jesus Sanchez
Climate change is among humanity’s greatest challenges, and the Middle East and Central Asia region is on the frontlines of its human, economic, and physical ramifications. Much of the region is located in already difficult climate zones, where global warming exacerbates desertification, water stress, and rising sea levels. This trend entails fundamental economic disruptions, endangers food security, and undermines public health, with ripple effects on poverty and inequality, displacement, and conflict. Considering the risks posed by climate change, the central message of this departmental paper is that adapting to climate change by boosting resilience to climate stresses and disasters is a critical priority for the region’s economies.
Keywords:
Climate change adaptation; Middle East and Central Asia; ME&CA country; novel climate risk profile; climate resilience; climate change mitigation; climate anomaly; Climate change; Natural disasters; Climate finance; Global; Middle East
Cover IMF Working Papers
Macroeconomic Gains from Reforming the Agri-Food Sector: The Case of France
Nicoletta Batini
France is the top agricultural producer in the European Union (EU), and agriculture plays a prominent role in the country’s foreign trade and intermediate exchanges. Reflecting production volumes and methods, the sector, however, also generates significant negative environmental and public health externalities. Recent model simulations show that a well-designed shift in production and consumption to make the former sustainable and align the latter with recommended values can curb these considerably and generate large macroeconomic gains. I propose a policy toolkit in line with the government’s existing sectoral policies that can support this transition.
Keywords:
WP; France; farming; production; food; externality; agriculture; growth; food policy; climate change; externalities; fiscal policy; diets; production system; polyculture farming activity; farming method; FAO food balance sheet dataset; export primacy; production method; carbon reduction target; et Alimentation; greening initiative; GHG emitter; food waste; milk production; Agricultural sector; Agricultural commodities; Consumption; Greenhouse gas emissions; Europe
Cover Finance & Development
Finance & Development, June 2015
International Monetary Fund. Communications Department
This chapter takes stock of the world’s development agenda, examining how to best seize this opportunity. Government officials and representatives from civil society organizations, donor groups, and the private sector are scheduled to meet in Addis Ababa, Ethiopia, to secure the financing needed to lift millions out of extreme poverty. Participants at the United Nations summit on climate change in Paris are expected to work toward a set of environmental targets aimed at ensuring a sustainable future. The chapter also presents an argument that the world needs strong deals in Addis Ababa on financing and in Paris on climate to deliver sustainable progress.
Keywords:
FD; F&D; country; development effort; economy; nation builder; narrower MDGs; MDG deadline; youth unemployment; capitalist economy; rainbow nation; Terrorism; Foreign direct investment; Global; Europe; Africa; Sub-Saharan Africa; Middle East; North Africa
Cover IMF Staff Country Reports
Jordan: Second Review Under the Extended Arrangement Under the Extended Fund Facility, Request for Augmentation of Access, and Modification of Performance Criteria-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Jordan
International Monetary Fund. Middle East and Central Asia Dept.
Early success in containing the spread of COVID-19 has been challenged by two subsequent waves of the pandemic. Timely and effective fiscal and monetary policy responses helped contain the contraction in activity to 1.6 percent in 2020, shallower than the 3 percent expected at the first review. The authorities have also made significant efforts to protect jobs and the most vulnerable. Still, unemployment has surged to a record 25 percent in Q4 2020, with youth unemployment at 55 percent. The impact on fiscal and external balances has been significant, with public debt reaching 88 percent of GDP at end-2020. Nonetheless, despite the challenges from new virus variants and weaker tourism prospects, macroeconomic stability has been maintained, thanks to the authorities’ proactive policy stance; and a moderate 2 percent growth rate is projected for 2021 (slightly below the 2.5 percent projected in the first review), with a near-full reopening expected in the summer. The new parliament extended a vote of confidence to the incoming government in January, and approved the 2021 budget—consistent with the program—in February.
Keywords:
staff appraisal; post audit; CBJ Law; procurement process; lender of last resort function of the CBJ; COVID-19; Arrears; Fiscal stance; Global