text:
Public Information Notice: IMF Concludes Article IV Consultation with France
November 13, 2000
|Public Information Notices (PINs) form part of the IMF's efforts to promote transparency of the IMF's views and analysis of economic developments and policies. With the consent of the country (or countries) concerned, PINs are issued after Executive Board discussions of Article IV consultations with member countries, of its surveillance of developments at the regional level, of post-program monitoring, and of ex post assessments of member countries with longer-term program engagements. PINs are also issued after Executive Board discussions of general policy matters, unless otherwise decided by the Executive Board in a particular case.
On October 27, 2000, the Executive Board concluded the Article IV consultation with France.1
Real GDP growth has been almost 3 percent on average since 1997, and the staff projects growth of 3¼ percent for 2000 and 2001. This momentum reflects the buoyancy of private consumption and investment, which have been sustained by supportive monetary conditions and high levels of household and business confidence. External demand has also contributed to the recent growth performance, owing to an improved external environment, the depreciation of the euro since its introduction, and competitive unit labor costs. In addition, several years of gradual but significant structural reform have improved labor market performance. However, growth was lower than expected in the second quarter of the year and more recently confidence indicators have declined somewhat, reflecting in part the rise in world oil prices.
A particularly positive feature of the current cyclical expansion has been the rapid pace of job creation. Employment has risen by a total of about one million since mid-1997 and by a record 450,000 jobs in 1999 alone. As a result, the unemployment rate declined from a peak of 12½ percent in 1997 to around 9½ percent in September 2000. New jobs were overwhelmingly concentrated in the services sector, with temporary employment and fixed-term contracts playing a prominent role. Even though an appreciable number of these jobs—one-fifth since 1997—were government subsidized, the employment performance also stems from the targeted reduction of social security contributions and labor market reforms carried out over a number of years.
Cost and inflation pressures have been muted despite diminishing margins of slack: capacity utilization rates, bottlenecks, and recruitment difficulties have all risen appreciably, although they remain below the levels of the previous cyclical peak. Wage settlements have been moderate, in part due to restraint as a counterpart to the reduction of working time (the 35-hour work-week initiative) introduced at the beginning of 2000. Although core inflation has been broadly stable at about 1 percent, rising oil prices have increased headline inflation to 2.3 percent in September, which has in turn intensified calls for further wage increases, particularly in the public sector.
On the fiscal front, the deficit in 1999 was 1.8 percent of GDP, compared with the target of 2.2 percent of GDP. Most of the overperformance was due to higher-than-expected collection of corporate taxes. For 2000, the general government deficit is expected to be 1.4 percent of GDP, taking into account revenue windfalls announced at mid-year as well as tax reductions on energy products and renewed slippages on health care outlays. At the end of August, the government announced a package of tax reductions amounting to about 1¼ percent of GDP, to be implemented over the 2001–03 period. The most important from a macroeconomic and structural perspective are reductions in all income tax brackets, rebates at the low end for the contribution sociale généralisée (a tax on all incomes to finance social security), and reductions in the corporate income tax. The draft 2001 budget, presented at end-September, targets a deficit of 1 percent of GDP, a reduction in the tax-GDP ratio and, consistent with the current Stability Program, real expenditure growth of 1.3 percent.
Reports on the Observance of Standards and Codes (ROSC) have been concluded regarding the Code of Good Practices on Fiscal Transparency and the financial component of the Code of Good Practices on Transparency in Monetary and Financial Policies.
Executive Board Assessment
Executive Directors agreed with the thrust of the staff appraisal. They commended the authorities on the recent performance of the economy, which has been characterized by a continuation of strong growth in output and employment amidst low and stable inflation. Directors welcomed in particular the vigorous employment performance and the related rapid fall in unemployment. While pointing to the downside risks for the short run represented by the rise in oil prices and some indications of a softening of demand, they generally shared the view that the upswing would continue into 2001. The resilience of the recovery in a possibly less favorable external environment would, Directors noted, depend importantly on continued wage moderation and on the implementation of measures to invigorate the supply side of the economy.
In this regard, Directors commended the authorities for policies that have enhanced the employment response of the economy—particularly by reducing labor costs for the low-skilled—and that have thus helped to underpin the recovery. To support lasting growth, attenuate the inflationary risks inherent in a sustained expansion, and prepare for the demographic pressures that will begin to be felt as early as 2005, Directors urged the authorities to press ahead with product and labor market reforms, and to further consolidate the fiscal position. A few Directors pointed to the importance of building social consensus for reform efforts to be successful, which could require a more gradual approach to the implementation of reforms and fiscal consolidation.
Directors noted the continued narrowing of the general government deficit in recent years, while calling for further progress to ensure the soundness of the public finances before the pressures of population aging set in. In particular, pointing to the slow improvement in the cyclically-adjusted deficit despite strong growth in recent years, most Directors called for a stepped-up effort with respect to the deficit reduction path envisaged in the 2001–2003 Stability Program. They viewed the strengthening of the deficit target in the 2001 budget proposal as a step in this direction, and a number of Directors felt that—on present growth projections—achievement of budget balance by 2002 is both a feasible and a desirable objective.
Directors agreed that improving long-term economic performance will depend critically on significant reductions in the high tax burden. They accordingly welcomed the authorities' emphasis on this objective and the announcement of a multi-year tax reduction package for 2001–2003.
Welcoming the reduction in the overall tax burden, Directors emphasized the importance that tax cuts be designed to maximize their supply-side impact. They commended the fact that several recent and announced measures had been explicitly designed to strengthen incentives to work, and urged that this be a continued policy priority. Besides tax reduction, several Directors also pointed to the need for simplification and streamlining of an overly complex tax system.
At the same time—given the importance of continued deficit reduction—Directors stressed that tax cuts should not be allowed to outrun expenditure control. The long-term health of the public finances was seen to depend squarely on durable expenditure control. The use of multi-year real expenditure growth norms was thus viewed as useful, but it will be important—for the credibility and effectiveness of this approach—that implementation be strengthened, adherence improved, upward revisions to the norms avoided, and continuity between one stability program and the next ensured.
Directors underscored that effective expenditure control over the medium term will depend on reforms in health care, the civil service, and pensions. In particular, they noted that health care outlays continue to be a worrying source of budgetary overruns, and that such pressures will be aggravated by population aging. Regarding the civil service, Directors saw the wave of retirements over the coming decade as providing scope for selectively streamlining the public administration without undermining its high quality. They noted that the outlook for the pension system remains of concern. While some steps to reform the system have been taken or proposed, Directors stressed that more fundamental measures will be needed to ensure the viability of the system. These should include increases in the retirement age (or extensions in the contribution period) and the development of a complementary private sector pension pillar.
Directors noted the need to reform benefits as well as taxes, since the major disincentives to work at the low end of the income scale result primarily from the withdrawal of benefits, rather than from high income taxation. They recommended that basic income support schemes, such as the RMI, be reoriented toward providing temporary support while encouraging a return to work. In this regard, Directors strongly supported the "return-to-work" elements of the unemployment insurance reform proposed by the social partners, although they warned against those aspects of the proposal that risk instead blunting work incentives and increasing financing costs. Some Directors also considered that the extensive subsidized employment programs should be reconsidered in light of the buoyant job market.
Directors noted that the 35-hour work-week initiative has proceeded relatively smoothly to date, and welcomed the broader dialogue on work organization it has promoted. Given the tightening labor market, however, they urged that implementation be flexible. In particular, in order not to curtail labor supply further, many Directors saw a pressing case for relaxing restrictions on allowable annual overtime hours. Further, these Directors also argued that additional flexibility should be provided to smaller firms, which have much less scope to rearrange work practices to accommodate the shorter work week.
Directors welcomed the notable progress in privatization, but saw further scope in the opening up of key network sectors. Regarding the financial sector, they cautioned that its current strong position owes much to the cyclical recovery of the economy as a whole. Directors therefore stressed the importance of cost reduction by banks and continued vigilance by supervisors with regard to provisioning and credit developments, in order to ensure that the sector will be in a strong position to weather an eventual downturn. Several Directors also saw scope for a further liberalization of the financial system, with regard in particular to the continued presence of administered interest rates and the prohibition of interest on sight deposits.
Directors welcomed the work on France's observance of the Fund's Codes of Good Practices. They expressed satisfaction about the positive findings of the reports on compliance with the Code of Good Practices on Fiscal Transparency—Declaration on Principles, and on the financial policy component of the Code of Good Practices on Transparency in Monetary and Financial Policies. Directors encouraged the authorities to give careful consideration to the reports' main recommendations.
Directors welcomed France's comparatively high level of development assistance. They also noted the generally high quality, comprehensiveness, and timeliness of its economic statistics.
It is expected that the next Article IV consultation with France will be held on the standard 12-month cycle.
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Espier Browser v1.0.2
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Destroying the fabric of this country
This week so far has been one that has been quite interesting and to some degrees frustrating for me. It amazes me how little some remember about government and its basic forms. Indulge me as I relate some definitions from the Random House Dictionary.
A republic is "a state in which the supreme power rests in the body of citizens entitled to vote and is exercised by representatives chosen directly or indirectly by them."
A democracy is "a government by the people; a form of government in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system."
A representative democracy "is a type of democracy in which the citizens delegate authority to elected representatives."
An oligarchy is "a form of government in which all power is vested in a few persons or in a dominant class or clique; government by the few."
A bureaucracy "is government by many bureaus, administrators, and petty officials."
Communism is "a system of social organization in which all economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political party."
A autocracy is a "government in which one person has uncontrolled or unlimited authority over others; the government or power of an absolute monarch."
Capitalism is an economic system in which wealth and ownership of mechanisms meant to create wealth reside in the hands of private individuals and organizations.
Finally socialism is "the stage following capitalism in the transition of a society to communism, characterized by the imperfect implementation of collectivist principles" or the application of communism in a government.
Read that last paragraph very carefully and note what it really says. This country's roots and philosophy were based on capitalism and republicanism which in its core is the belief that we are responsible for our destinies and that God, the Creator or some Supreme Intelligence has granted us freedom and liberty which should not be abridged by any human or organization.
This country is spiraling out of control and those who were against the health care bill this week got a taste of what it probably was like for those people who have been against us defending our country the last eight years. Many of those for the health care bill are happy and chalk it up as a victory on some hallucinatory scorecard that sticks a dagger in republican principles of individual liberties and rights.
What's sad is none of us see the writing on the wall. How blind are we to the fact that we are destroying the fabric of this country with entitlements and the belief our government can care for us better than we can care for ourselves? What happened to individual responsibility? What happened to the work ethic and working hard to get somewhere?
It's sad that many of us can't afford health care including myself. Right now, I have COBRA but I can't get health care insurance either for my own personal reasons. I'm against this bill. Why? First and foremost because I do not agree with some bureaucrat sticking his nose in my business and telling me I HAVE to do something about it. Second, I think its abominable the IRS is going to be used as the health care lapdog to enforce this law. Thanks for giving a totalitarian agency more power it didn't need. Way to go.
In addition if this bill was so great, why weren't representatives allowed to talk with their constituents or go home before it was passed? Why were many of them bribed with backroom deals and favorable status for pet projects? Take a look at Lackawanna County's own Paul Kanjorski who once again let his vote be swayed in exchange for assistance to a part of his district that doesn't need any more help. How many others were bought off and promised things? How is that open and transparent debate?
People crucify Bush still for problems created by Democrats in Congress. It was Barney Frank and Chris Dodd who pushed the banking industry to give loans to people who couldn't afford them setting up the dominoes that helped to put us in this economy. It was Democratic votes of Congress over the past 40 years that expanded Social Security and then released its funds into the general fund in essence guaranteeing that socialist program its future bankruptcy.
It is Congress in general that doesn't seem to care that we have been invaded by illegal immigrants who are flooding our systems, taxing our ability to care for our own people. Yes, this is a free country in principle, but it was not free for most of our ancestors who died in the mines, factories and fought on the battlegrounds of this country and many foreign lands to ensure our freedom.
We beat back King George III, the Kaiser, Adolf Hitler and Benito Mussolini, Tojo, Stalin and Lenin, but who got us in the end? Nikita Khrushchev's words should make those of you old enough to remember tremble and those who aren't should learn about this man. He promised to destroy us from within. For those keeping score, he is ahead and for those of you cursing my column right now, maybe it's because you realize you have already been won over.
It's not too late to turn back, but soon it will be.
Til next time ….


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Cassandra de Alba
The Whales
Hard up for cash, the whales began renting out their stomachs to summer vacationers. It was a novelty, staying in the belly of a whale, like the teepee-shaped motels that still exist off the highways in some parts of Arizona. The whales would come right up to the shore and allow tourists to step into their patiently opened mouths, drag wheeled suitcases and whining children over their plankton-flecked baleens. At night, the hastily installed generators—for the tourists' laptops and hair dryers and light fixtures—caused the whales to hum and glow like bobbing lanterns at the edge of the beach. By day, the whales huddled in pods as their tenants splashed and sunbathed, occasionally summoning one of the animals over so a pair of flip-flops or sunglasses could be retrieved. The older whales refused to participate, at first, in what they perceived to be a grave wound to the species' dignity, but they died off or came around as the young whales gained influence, their pockets flush with easy money.
Cassandra de Alba
Cassandra de Alba's work can be found in ILK, Red Lightbulbs, Illuminati Girl Gang, and NAP, among others. Her most recent chapbooks are called Bloodlust (No Spaceships Allowed) and Special Bitch Academy. She lives in Massachusetts and blogs at outsidewarmafghans.tumblr.com.
(Photo credit: Marshall Goff)


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Acupuncture and Chinese herbal medicine are phenomenal tools to support you from conception through postpartum. Pregnancy is a time of growth and change, during which many women experience discomfort. Chinese medicine brings balance to the body and reduces these common discomforts: nausea, vomiting, edema, fatigue, emotional stress, abnormal bleeding, threatened miscarriage, musculoskeletal pain, and much more. It is recommended you receive weekly treatment during the first trimester, monthly treatment during the second trimester and biweekly treatments during weeks 37 through 40.
Birth preparation treatments are focused on descending and optimizing position of baby, relaxing and softening the cervix and pelvis, relieving stress and anxiety and promoting energy to sustain birth. Kat is a trained gentle birth doula. She combines her gentle birth philosophy with her Chinese medical training and offers on site birth acupuncture at home, birth center, and hospital births. However you choose to give birth, acupuncture can support you through this process. The benefits of acupuncture during early and active labor include: ripening cervix, reducing anxiety and stress, shortening length of labor, and promoting natural pain relief.
Nutritional and emotional nourishment are key components to sustaining the common stressors new moms encounter. Acupuncture and Chinese herbs effectively nourish and rebalance the body after birth. Common conditions treated include: low milk supply, mastitis, retained lochia, after-pains, prolapse, urinary or digestive symptoms, postpartum depression, painful or cracked nipples, and much more. Kat offers postpartum home-visits for those who prefer.
We invite you to contact us and look forward to working with you.


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postfix mailserver (sometimes) blocked
Hi all,
I run a postfix mailserver under FreeBSD on a small SoHo server/gateway under my own domain name.
Last week I switched ISPs. For my new fixed IP number, one of the first things I did was request rDNS pointing to my domain. Done.
However, over the past few days, I've encountered three mailservers which bounce my outoing message back:
Diagnostic-Code: smtp; 554 5.7.1 Rejected
550 Administrative prohibition (in reply to RCPT TO command)
Recipient not authorized, your IP has been found on a block list (in reply
The error messages above are kind of vague. :(
I ran my IP number through a database check: http://www.dnsbl.info/dnsbl-database-check.php, but it came up clean.
I am wondering if I am missing some obscure Postfix setting or something... but I have a fairly standard installation and I have no problems with the bulk of my outgoing mail traffic.
Any ideas?
X.7.1 Delivery not authorized, message refused
Nothing is absolute in practice, but it should work. You might also check the error msg / mail logs for a URL containing contact instructions, or the whois database for a technical contact.
Well, that was an interesting experiment. I decided to tackle the first two.
#1: checked the whois record, found the name of the technical contact and corresponding email address, postmaster@.. Mailed error message. That bounced, so I Googled the name and found another email address for the technical contact. That bounced as well.
#2: web host is not mail host, so I looked up whois record for mail host, found the name of the technical contact and corresponding email address, also postmaster@.. Mailed error message. My message was forwarded to another account, and it also bounced.
Score: 0/2
It is by no means a representative sample :), but if I may nonetheless be permitted a simple generalisation, it would seem that some organisations are not very diligent about keeping their domain records up-to-date. In both these cases, the original technical contact no longer appears to be with the organisation.
Just to satisfy my curiosity, rfc 2821 does require a postmaster mailbox:
This whole business reminds me why I don't like blacklists. They are too rigid and non-transparent. They stifle communication, which is really the soul of the Internet.
I use greylisting for incoming mail on my smtp server, and that works brilliantly. Most spambots don't retry. Those that get greytrapped, only get blocked for 24-hours. Between that and Thunderbird's Bayesian filter, very little spam makes it to my inbox, and I get very, very few false positives.
Bummer. If the receiving domain has a website, it may be worth checking there for contact info.
One last thing you can try with 'postmaster' is telnetting to the MX and manually submitting mail to the bare postmaster address:
RCPT TO:<postmaster>
update: SOLVED
I finally found out which list was blocking my IP: it was the SORBS Dynamic User and Host List (DUHL). This is a list of IP ranges which have been determined to be allocated dynamically, hence, apparently, prone to misuse, presumably by bot networks. It would seem that the IP range in which my IP number falls was once allocated dynamically (this is obviously no longer the case).
One of the mailserver error messages that got bounced back at me indicated this.
For some reason, the DNSBL database check I mentioned above didn't include this, perhaps because it is not a true spam blacklist.
It was easy enough to fix. There is a kind of (semi-)automated system for requesting delisting from that list on the SORBS site, which requires that you have a correct rDNS entry, which I did. It took about four days, but my IP is now delisted. This is something my ISP should be on top of, but that is another matter.
So, it appears that there are various mailserver configurations which use the SORBS DUHL. Most just block you with a generic error message, but some at least say why.
Here is my humble wish: If people configure their mailservers to use a list like this, make sure that, when a message gets bounced, the error message explicitly indicates the reason.
I don't use any blacklists on my mailserver. I find greylisting catches most spam, and Thunderbird's bayesian filters catch almost all the rest. Actually, that is not 100% true: I also block all IPs in China and South Korea. OK, I am not perfect either.... ;)
Heh, this is why SORBS sucks. If you search for it on the web you'll find no end of grievances. The list is maintained by a well-known anti-social jerk with very antagonistic views. There are many freely-available DNSBLs that are much higher quality than SORBS. Any time you run into a site using SORBS, recommend that they do a web search and use something better instead.
A Google search did indeed turn up some controversies surrounding SORBS.
To be fair though, the delisting procedure for the dynamic host list (DUHL) is fairly straightforward and reasonably quick.
Also, my main complaint is not so much with the list itself as with the implementations in spam traps which don't indicate on the basis of which list a mail is being bounced. As I mentioned above, some mail systems properly indicate this, with an URL to the list's host, but many just return a generic error message.
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Anyone who's been shoved by a rushing stranger on a busy street or cut off by a passing motorist can relate to the idea that, sometimes, the world doesn't seem like a nice place.
Now, officials at Harvard are taking an unusual, even controversial, step to encourage civility and camaraderie on campus. They are asking freshmen to sign what's being called a kindness pledge, which states that students will uphold the values of the institution and "sustain a community characterized by inclusiveness and civility."
Anyone who signs also commits to making Harvard a place where "the exercise of kindness holds a place on par with intellectual attainment."
Not everyone is on board with the idea, the Boston Globe reports. Former Harvard College dean Harry Lewis wrote on his blog that the pledge "is unwise, and sets a terrible precedent."
Prof. Lewis explained that signing a pledge goes against the idea that students should have complete freedom of thought. The pledge is a commitment to view the world a certain way and uphold certain values – which flies in the face of many ideals espoused by the pursuit of higher education.
"It is a promise to control one's thoughts," he wrote. "A student would be breaking the pledge if she woke up one morning and decided it was more important to achieve intellectually than to be kind." He also noted that Harvard has rejected pledges and oaths throughout its history.
The pledge has stirred up quite a bit of controversy and protests from others as well.
Defenders of the pledge, however, say a commitment to civility actually enhances the learning experience and fosters a better environment.
Is a "kindness pledge" a good idea? Should everyone be asked to sign a commitment to treat others better?Report Typo/Error
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WIN with Spud & Spike this Christmas!
Merry Christmas everyone!
Here are our Christmas competitions, they are only open until Sunday night so get your entries in quickly! The winners will be emailed early Monday morning and will need to reply within 48 hours.
Any winners that have not sent their details by Wednesday 19th December 2012 will unfortunately lose out and the competition will be redrawn. To view the competitions just click the advent windows below.
Good Luck!ThePrizeFinder – UK Competitions Loquax Competitions


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Rand Simberg has some interesting comments about public officials misguided attempts to control childrens diets. My state has also jumped on the non-fat wagon. All public schools were ordered by the state to measure childrens body fat. Arkansas kids' report cards now include their B.M.I., or body mass index, along with their grades. It hasn't made any difference in the kids weight or body fat. It shouldn't be the responsibility of schools to track or try to change childrens weight.
Kids are fed by school cafeterias at least twice a day…..breakfast and lunch…… but that doesn't mean the food is really eaten. From what I've seen of school cafeterias most of the offerings are pretty mediocre and left on the plate. Kids aren't stupid.
Schools shouldn't be in the feed business anyway. They ought to close the cafeterias and require that kids bring their own lunches.
I remember when I was a kid. One of the most horrifying experiences I've ever had occurred in my elementary schools lunchroom when I was in the third grade. It was soup and peanut butter sandwich day. The vegetable soup was pretty good and the peanut butter sandwiches were……. peanut butter sandwiches. I made the mistake of admitting that I liked peanut butter sandwiches to a kid sitting near me.
Suddenly there was a stack of twelve or thirteen peanut butter sandwiches sitting on top of my plate. The teacher on duty ran over to my table and screeched at me. She called me a glutton and other names. I hadn't even asked anyone to give me the sandwiches. I don't think I could even eat after that.
I asked my mom to make my lunch from then on and she did. But back then we could bring our lunches but not our drinks so I still had to deal with the milk.
I remember the smelly milk cartons. I remember the response of the teacher when I told her I couldn't stand milk and wanted to drink the juice. She had a fit.
Strange memories of school but to this day I cannot stand milk or catchup and am sure that it stems from the peanut butter incident.
School officials and politicians ought to leave kids alone. Let them bring their own lunches. Most kids would prefer that.
…like other misguided public health campaigns (remember "Just Say No"?), putting children on de facto diets at school just doesn't work. In a 2003 experiment involving 41 schools, more than 1,700 children — many of them American Indian — were served lower-calorie and lower-fat lunches and were taught about healthy eating and lifestyles.
While the children took in fewer calories from fat at school, they experienced no significant reduction in their percentage of body fat.
Another study, in rural Nebraska in the mid-1990's, put one group of elementary school students on lower-fat and lower-sodium lunches, increased their physical activity at school and offered more education about nutrition. Compared with students having no special program, the active, lower-fat group showed no differences in body weight or fat, or in levels of total cholesterol, insulin or glucose after two years.
Hat tip: Instapundit
UPDATE: Welcome Instapundit readers. Also check out Composite Drawling's descriptions of the brownbag lunch her mother fixed her that was totally humiliating.
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