(e) Greater reliance on investment income

Investment simultaneously generates income and expands productive capacity.

If China runs an investment income deficit with net assets of almost 2 trillion, how will it make the transition to an investment income surplus?

Interest income includes all interest from various bank accounts and investment income earned on invested funds.

Currently, the investment section has six investment officers who cover global equity markets and fixed income investments.

The Fund relies on three sources of income (a) employers' contributions (b) employees' contributions and (c) investment income.

(c) Other income. Other income consists mainly of interest income, gains losses as a result of exchange rate movements and other miscellaneous items.

China s investment income deficit will probably persist in the foreseeable future.

The September summit should endorse national and international measures to direct foreign investment to low income countries through such measures as investment guarantee schemes, tax and other incentives, revised risk rating and similar arrangements.

(q) Other income

Other income and adjustments

a) Other income includes interest income and miscellaneous income in the range of 3 million per annum.

Interest and other income of 3.1 million bring to 174.5 million the total income for other resources for 2004.

In the later stages, the country becomes a net creditor, running an investment income surplus.

However, other low income and middle income developing countries also needed special attention.

Table 2 Other income and adjustments

Other income consists of 1.498 million exchange rate gains and 1.928 million interest income.

Other low income countries should follow suit.

Figure 4. Contribution income other resources, 2004

I disagree with those who assert Ethiopia and other African nations of similar income level s are too burdened with governance, poverty, and poor investment climates to exit the poverty trap.

These instruments include tax exemption on income remitted into the country by Malaysian companies investing overseas, the provision of investment guarantees and investment promotion missions abroad.

The world has long run a substantial deficit in investment income, even though the correct numbers should sum to zero. The missing income must be going somewhere.

An automated solution will be implemented to achieve effective monitoring of investment performance and risks undertaken and the prompt identification of the Fund's investment income and assets.

Income and expenditure by category other donor resources

Places like the United Kingdom actively court wealthy foreign nationals through extraordinary preferential treatment of their investment income.

Any income received for these or other miscellaneous items during the biennium will be recorded against other income and reported in the financial performance reports.

A country in the later stages of development can use investment income from its past accumulation of net foreign assets to compensate for the decline in citizens incomes due to aging and other changes.

Additional taxes on investment income meant the top tax rate before Thatcher came to power was initially above 95 .

But, despite China s position as one of the world s largest creditors, its net investment income balance is deeply negative.

In the first three stages, the country is a net borrower with a deficit on the investment income account.

Total contributions to UNICEF described in this report include donor contributions, Private Sector Division income and other income.

This includes 322.5 million in voluntary contributions, 3.5 million in interest income, and other income of 5.6 million.

As a result, whenever the US dollar declines, China s net international investment position (the difference between its external financial assets and liabilities) deteriorates and so does its investment income balance.

Previous positions include Deputy Director General, Foreign Investment Taxation Department Chief, Income Tax Division, Foreign Investment Taxation Department and Chief, Tax Policy and Tax Administration Divisions, Offshore Oil Tax Administration.

A more likely scenario is that China will continue to have a trade surplus (though much smaller) and an investment income deficit, mirrored by America s trade deficit and investment income surplus. If both countries have balanced current accounts, their balance of payments positions can be sustainable.

To carry out the mission and achieve the Fund's goals and objectives, the Investment Section of the Investment Management Service actively manages portfolios of equity, fixed income, real estate and short term investments, constantly analysing capital markets and investment opportunities.

Third, unlike other assets, gold does not provide any income.

Total regular and other income in 2004 was 506.1 million.

While regular resources income increased over previous years, the balance between regular and other resources income continued to deteriorate sharply.

Additional income was derived from miscellaneous sources, such as currency exchange adjustments, interest income, inter fund transfers and other adjustments.

Operational budget income from support cost earned from technical cooperation delivery and other income amounted to 9.3 million in 2004.

An investment of 2.5 billion is anticipated over a period of five years to put in place measures to significantly increase the disposable income and improve the living conditions of low income households.

Reducing individual tax rates and taxes on savings and investment at best fosters modest increases in employment, work effort, and income.

Other regions with low income countries should follow a similar pattern.

Eligibility is based on age and citizenship residency, and almost always on means such as income, assets or other pension income.