Crisis preparedness and debt management in low income countries : strengthening institutions and policy frameworks

The magnitude of the public liabilities incurred as a result of the unprecedented government action in the wake of the financial crisis of 2008-2009, and the consequences of exiting from the projected high debt scenario, have become a major source of concern about a future sovereign debt crisis. As Low-Income Countries (LICs) face unique challenges in debt management (DeM) due to their more limited financing sources and higher capacity constraints, their ability to successfully manage their public debt burdens effectively through a crisis of this magnitude is far from assured. Therefore, the challenges of the last two years will require a re-evaluation of existing DeM strategies in LICs, focusing on the identification of institutional weaknesses and the assessment and mitigation of potential risk. It is in this context that this paper examines the application of two global public goods in LICs: the Debt Management Performance Assessment (DeMPA) and the Medium-Term Debt Management Strategy (MTDS) tools. The results of the application of these tools from 2007-2009 provide valuable information to policymakers and other stakeholders on the development of sound public DeM practices and analytical capacity, with the goal of strengthening the public balance sheet and reducing vulnerability to financial crises.Debt Markets,External Debt,Access to Finance,Emerging Markets,Banks&Banking Reform

The Fiscal Implications of Industrial Restructuring: The Case of Northeastern Ohio

Three issues are raised in this chapter. The first is what theory would lead us to believe about the impacts of industrial restructuring (the loss in production manufacturing and the gain in service employment) on the budgets of state and local governments. Are natural forces set in motion that cause state and local governments to adjust to the realities of their new economies - for instance, do they change their tax structure, spend less, borrow less? The second issue is whether local governments in northeast Ohio have followed a natural pattern or used discretionary policy to swim against the tide. Third, we raise the question of what is proper fiscal policy for a local government in northeastern Ohio

India: Urban Property Taxes in Selected States

Property taxation has a long been a vexing issue in India, and continue to be. India faces a major structural problem with its property tax systems, resulting from the failure to resolve conflicts between assessing the true market value of property with rent control ordinances, and other limitations such as the FSI. Moreover, government officials have generally been unwilling to issue new valuation rolls, in some cases for many years. Much of the recent property tax reform in India has entailed stop-gap measures to overcome these problems, rather than engaging in comprehensive reform. Meanwhile, the growth of property tax revenues has remained anemic. Unless these structural issues in properly valuing property are resolved, improved administration will do little to make the property tax a valuable revenue source for local governments, and the gap between their local expenditures and revenues in likely to grow over time

India: Urban Finance and Governance Review Volume II: Case Study Annexes

The report makes an in depth analysis of what to expect of future urban population growth in cities across India. Cities play a critical role in India\u27s development. While its one billion-plus population is predominantly rural, over 300 million people live in urban areas. One-third of this population lives in 35 urban agglomerations or cities exceeding one million. Cities\u27 governments are responsible for delivering various public services, yet severe infrastructures shortages in water supply and sanitation, roads, transportation, housing and waste management, and inefficient management have resulted in poor quality services. These inadequate services and worsening environmental conditions affect the poor. Between 1950 and 2000 India\u27s urban population increased from 62 to 288 million. Already strained to provide services and quality of life to existing urban residents, cities will face tremendous challenges in expanding existing infrastructure and avoiding deterioration of living standards due to congestion, pollution, and lack of basic services. A doubling of the population over 30 years means that by 2030 there will be a second Mumbai, a second Calcutta, and a second Bangalore that must be fed, supplied with water, sanitation, electricity, give public and private transportation options; and where garbage must be disposed of. The report concludes by laying out a series of state and local actions over the short-medium and long-term to enhance fiscal sustainability and strengthening institutional capacity building of state and local governments

India: Urban Finance and Governance Review - Volume I Executive Summary and Main Report

The report makes an in depth analysis of what to expect of future urban population growth in cities across India. Cities play a critical role in India\u27s development. While its one billion-plus population is predominantly rural, over 300 million people live in urban areas. One-third of this population lives in 35 urban agglomerations or cities exceeding one million. Cities\u27 governments are responsible for delivering various public services, yet severe infrastructures shortages in water supply and sanitation, roads, transportation, housing and waste management, and inefficient management have resulted in poor quality services. These inadequate services and worsening environmental conditions affect the poor. Between 1950 and 2000 India\u27s urban population increased from 62 to 288 million. Already strained to provide services and quality of life to existing urban residents, cities will face tremendous challenges in expanding existing infrastructure and avoiding deterioration of living standards due to congestion, pollution, and lack of basic services. A doubling of the population over 30 years means that by 2030 there will be a second Mumbai, a second Calcutta, and a second Bangalore that must be fed, supplied with water, sanitation, electricity, give public and private transportation options; and where garbage must be disposed of. The report concludes by laying out a series of state and local actions over the short-medium and long-term to enhance fiscal sustainability and strengthening institutional capacity building of state and local governments

Intergovernmental Loans: Their Fit into a Transfer System

Governments decentralize for various political and economic reasons. It can be a means to move decision making closer to people, to enhance the efficiency and responsiveness of service delivery, and to make tax systems more productive. In some countries, it may also promote national cohesion (e.g., Indonesia). Done well, decentralization can lead to all of the benefits promised by a multi-tiered intergovernmental system: better public services, enhanced local accountability, and a potential tool for poverty alleviation. But if decentralization is done badly, it can lead to macroeconomic instability, deterioration in service delivery, corruption and collapse of the safety net.Intergovernmental Loans, Transfer System, dezentralization

Measuring state and local government fiscal capacity: A new, comprehensive approach

This dissertation develops a comprehensive measure of fiscal capacity for state and local governments in the United States that considers the relationship between revenue-raising capacity and expenditure requirements. This fiscal capacity measure differs from other measures in its consideration of the dynamism between tax rates and tax bases, the linkages between federal tax policies and fiscal capacity, the prior claims presented against a jurisdiction\u27s resource base, and the needs and costs of providing a standard level of government goods and services