Strategies to Promote Growth

Two excellent examples from the Economist this week.

The first is the decision by the IMF and the World Bank to cancel $2.1bn of debt in Guinea, equivalant of two-thirds of the country's foreign-held debt, due to Guinea's status as a Heavily Indebted Poor Country (HIPC). This is expected to free up approximately $150m, which was being used to service their debt, to be used for projects to combat poverty, increasing the wages of public sector employees and as Kerfalla Yansane the country's Finance Minister has promised , spending on infrastructure, water, electricity and food security.

The hope is that this debt relief will help Guinea move from and IMF estimated 4.7% growth in 2012 to double-digit growth in the year's to come.

The second is this interview with Nobel Prize winner Muhammad Yunus, the founder of Grameen Bank. It is an excellent insight into how companies can flourish as well as providing a foundation for microfinance and social development. It is also useful for Unit 3 students who are looking at alternatives to profit maximization, notably the role of social business.