IMF’s David Lipton in Mauritius for conference on managing capital flows
Despite global economic and financial turmoil, growth in frontier economies has improved markedly over the past decade, said David Lipton, IMF’s First Deputy Managing Director, at a Mauritius-based conference on emerging market lessons for frontier economies. (Image: c2.staticflickr)
Starting today, the First Deputy Managing Director of the International Monetary Fund (IMF), David Lipton, is attending a conference on “Managing Capital Flows: Lessons from Emerging Markets for Frontier Economies,” which ends tomorrow, 3rd March, 2015.
Delivering the opening remarks at the conference, David Liptop said that the reason why the conference focuses on the frontier economy is, because, just as “today’s emerging markets were yesterday’s frontier economies, so will today’s frontier economies be tomorrow’s emerging markets.”
“Despite global economic and financial turmoil, growth in frontier economies has improved markedly over the past decade,” he said.
African frontier economies, for example, have managed to raise their growth rates from an average of 3½ percent per year in the 1990s, to more than 6 percent per year in the 2000s; similar trends are evident in Asian and Latin American frontier economies as well.
“Financial markets have woken up to this fact, which is why we have been seeing not only rising volumes of private capital but also greater diversity in the sources and modalities of flows to frontier economies,” he added.
For David Lipton, the conference in Mauritius will provide a forum for policymakers, academicians and market participants from frontier and emerging markets to share their experiences on how they can reap benefits and mitigate the risks concerning capital flows.
After his visit to Mauritius, David Lipton will proceed to South Africa from March 3rd to 5th, where this time he will deliver a lecture at the University of Cape Town in South Africa.
Furthermore, in South Africa, he will meet with policymakers, representatives of the trade unions and the business community.
“South Africa has made substantial progress in its first 20 years of democracy, achieving far improved living standards for its citizens, but now faces challenges to raise its growth rate and create more jobs,” David Lipton said.
After South Africa, David Lipton will proceed to Democratic Republic of the Congo (DRC) where he will land on March 5th and stays till the 7th.
In DRC, he will meet with the University students alongside senior representatives of government, donors and the private sector.
“Despite a challenging external and domestic environment that includes weak social indicators, the DRC economy continues to show resilience with positive trends in key macroeconomic indicators,” he said.
According to David Lipton, his visit will provide an opportunity to enhance the IMF’s engagements with frontier economies, while also strengthening our partnership with South Africa and the DRC.
Another noteworthy remark that was made by David Lipton in conclusion was that private capital flows to frontier markets are on the rise.