This book synthesizes the findings from
ten case studies that investigate whether, when, and how
foreign aid affected economic policy in Africa, and reveals
the range... Show More +
of African policy experience. Results varied
enormously, for example, while Ghana and Uganda were
successful reformers that grew rapidly reducing poverty,
Cote d'Ivoire and Ethiopia have shown significant
reform recently, but its sustainability remains to be seen,
and, in other countries, policies changed little, or even
worsened. Based on the World Bank's Country Policy and
Institutional Assessment, the study relates foreign aid in
the 1990s, to a measure of overall economic policy, a broad
measure that covers macroeconomic management, as well as
effectiveness of the public sector in providing essential
services for growth, and poverty reduction. In assessing
aid, and reform policy, the study subdivides these countries
in three groups: the post-socialist reformers (Ethiopia,
Mali and Tanzania); the mixed reformers (Cote d'Ivoire,
Kenya and Zambia), and the non-reformers (The Democratic
Republic of Congo - Zaire - and Nigeria). Although defining
"good policy", and how to measure it may be
controversial, research and experience established a fair
knowledge: absence of high inflation, functioning foreign
exchange, openness to foreign trade, effective rule of law,
and delivery of key services. Conclusions stipulate that key
to successful reform, is a political movement for change;
that key to beneficial aid is its disbursement alongside
actual policy improvements; and, that technical assistance,
and policy dialogue should continue a high level of finance
in productive environments. Show Less -
Type: Publication
Report#: 22118
Date: April 30, 2001
Author:
Devarajan, Shantayanan ;
Dollar, David R. ;
Holmgren, Torgny [editors) ;
Tsikata, Yvonne M. ;
Kasekende, Louis ;
Atingi-Ego, Michael ;
Ddamulira, Daniel ;
Abegaz, Berhanu ;
Guillaumont, Patrick ;
Guillaumont Jeanneney, Sylviane ;
Amprou, Jacky ;
Cheick Sidibe, Oumar ;
Bigsten, Arne ;
Mutalemwa, Deogratias ;
Wangwe, Samuel ;
Berg, Elliot ;
Pegatienan, Jacques ;
O'Brien, F.S. ;
Ryan, Terry C.I. ;
Rakner, Lise ;
van de Walle, Nicolas ;
Mulaisho,Dominic ;
Kiakwama, Gilbert ;
Chevallier, Jerome
The World Bank Institute (WBI) has
responded to the challenges of urban development and city
management by launching a number of important initiatives.
Chief among these... Show More +
is the program on Urban Challenges of the
21st Century, under which the Institute developed a number
of courses on urban and city management that have been
conducted worldwide. These courses were designed in the
context of a new urban strategy in the World Bank. The
strategy recognizes that cities are crucial in efforts to
address poverty and developmental issues, but acknowledges
that this potential will not be realized unless cities are
livable, competitive, well-governed and managed, and
bankable--all themes that are explored in this book. This
book results from the first such course, which was held in
Toronto, Canada, in May 1999. The book's chapters
correspond to the course's ten modules on such topics
as globalization and city management, city strategy and
local governance, urban financial management, private sector
participation in infrastructure provision, urban
environmental management, and urban poverty reduction. Show Less -
Type: Publication
Report#: 21642
Date: January 31, 2001
Author:
Freire, Mila ;
Stren, Richard [editors]
The importance of an appropriate legal
framework reflecting the cultural, sociopolitical, and
economic circumstances of a country is now widely considered
to be an important... Show More +
element in the development process. The
latest recognition of this link may be found in the
Comprehensive Development Framework adopted by the World
Bank, where the second pillar underscores the fact that no
equitable development is possible without, among other
things, an effective system of property, contract, labor,
bankruptcy, commercial codes, personal rights laws, and
other elements of a comprehensive legal system. This study
presents a historical perspective of legal reform programs
in Africa, especially after the post-independence period. It
then reviews the experience to be discerned from World
Bank-financed legal reform projects in Africa, which have
the primary objective of promoting private sector
development. It focuses primarily on legislative reform,
that is, reform of substantive laws and subsidiary
legislation, and activities designed to ensure the
appropriate application of the new texts, such as capacity
building and strengthening of legal institutions, including
the ministries responsible for justice, the judiciary, and
the legal profession. Show Less -
Type: Publication
Report#: 20377
Date: April 30, 2000
Author:
Ofusu-Amaah, W. Paatii
This study examines the state of
agricultural incentives in Sub-Saharan Africa, taking stock
of the current policy environment and its recent evolution.
The global price... Show More +
environment is examined together with the
macroeconomic, export crop, food crop, and fertilizer
policies in sixteen African countries. Policy diamonds are
constructed as incentive indicators reflecting the state of
macroeconomic and agricultural policies relative to a
perceived frontiers. The study attempts to determine the
factors inhibiting countries from moving towards this
frontier. The study highlights several continuing policy
challenges that sub-Saharan Africa faces to ensure
appropriate agricultural incentives to stimulate growth.
These include: coping with agricultural commodity price
decline and fluctuation; securing access to foreign markets
and in particular meeting the sanitary and phytosanitary
requirements; removing continuing domestic trade barriers;
stabilizing macroeconomic policies; enhancing the
institutional framework and the credibility of rules;
removing the remnants of marketing boards in many African
countries; removing excessive agricultural taxation and
ensuring public rural investment; improving transportation
infrastructure; encouraging public and private sector
partnership and dealing with aid in input markets. Show Less -
Type: Publication
Report#: WTP444
Date: August 31, 1999
Author:
Townsend, Robert F.
The massive migration of people from
rural into urban areas is the most spectacular gemographic
upheaval that Africa has experienced in recent decades.
While Africa... Show More +
was 80 percent rural at the time of
independence, its rate of urbanization now stands at 50
percent, and the trend is expected to continue over the
coming years. This book surveys 25 years of experience in
the urban development sector in Francophone Africa and
suggests an agenda for future, focusing on the fundamental
questions: What should be the priority areas of action under
future urban projects? Who should be the partners? Where
should urban investments be made, and how should they be
financed? This book proposes a priority agenda for the
urban sector in the region. The basic principles
underpinning the approach to the framework for intervention
are: a) find simple solutions to complex problems; b)
don't lose sight of the beneficiaries; and c) choose
the right partners. Chapter 5 suggests some operational
tools covering urban planning, land management, urban
finance, taxation, and municipal contracts. Show Less -
Type: Publication
Report#: 18408
Date: August 31, 1998
Author:
Farvacque-Vitkovic, Catherine ;
Godin, Lucien
This paper evaluates World Bank
activities to prevent and mitigate the effects of AIDS in
all regions of the developing world during fiscal years 1986
to 1996. It first... Show More +
prioritizes HIV-prevention and treatment
interventions using the principles of public economics.
Based on this framework, it assesses the appropriateness of
Bank lending and grants, Bank Country Assistance Strategies,
and country economic and sector work. While the Bank
provided extensive assistance for efforts to collect
information (surveillance and behavioral studies), support
was less extensive for interventions that focus on reducing
risky behaviors of those at highest risk for contracting and
transmitting HIV. Few of the projects reviewed in the paper
relied on strong economic analysis in ex-ante or ex-post
evaluation. These findings suggest two primary challenges
for the World Bank: (i) to focus its support for HIV
prevention interventions that reach groups at highest risk
to contract and spread HIV; and (ii) to improve the economic
analysis used in preparing Bank HIV-related projects and in
evaluating their effectiveness. Show Less -
Type: Publication
Report#: WDP389
Date: June 30, 1998
Author:
Dayton, Julia
Although reduction of fiscal deficits is
commonly cited as the main objective for the adoption of
privatization in Africa, the choices of enterprises for
privatization... Show More +
suggests that the primary motivations for
privatization have been the need for the World Bank,
International Monetary Fund, and donor financial support and
the need to generate proceeds and divest some trouble
state-owned enterprises while minimizing political fallout.
The study has three key components: the construction of a
database of privatization transactions in Africa, a set of
ten country case studies, and an analysis of the role and
extent of World Bank and donor assistance in support of
privatization. The analysis of privatization in Africa falls
into two principal parts: findings and conclusions. The
findings examine why African governments have privatized,
how they have privatized, what has been achieved, and what
the impact of privatization has been. The conclusions cover
an assessment of progress, the role of donors, and
suggestions for the improvement of the process. Show Less -
Type: Publication
Report#: 17972
Date: April 30, 1998
Author:
Campbell White, Oliver ;
Bhatia, Anita
Does Mercosur's trade performance
raise concerns about the effects of regional trade
agreements?, by Alexander J. Yeats. A panel data analysis of
the fungibility of... Show More +
foreign aid, by Tarhan Feyzioglu, Vinaya
Swaroop, and Min Zhu. Technological capability and firm
efficiency in Taiwan (China), by Bee Yan Aw and Geeta Batra.
Skills, schooling, and household income in Ghana, by Dean
Jolliffe. The tragedy of the commons in Cote d'Ivoire
agriculture: empirical evidence and implications for
evaluating trade policies, by Ramon Lopez. Economic
parameters of deforestation, by Joachim von Amsberg. Why has
Poland avoided the price liberalization trap? : the case of
the hog-pork sector, by Anning Wei, Waldemar, Guba, and
Richard Burcroff II. Show Less -
Type: Publication
Report#: 17997
Date: January 31, 1998
Author:
Yeats, Alexander J. ;
Feyzioglu, Tarhan ;
Swaroop, Vinaya ;
Min Zhu ;
Bee Yan Aw ;
Batra, Geeta ;
Jolliffe, Dean ;
Lopez, Ramon ;
von Amsberg, Joachim ;
Anning Wei ;
Guba,Waldemar ;
Burcroff, Richard, 2nd
This book is about the analysis of
household survey data from developing countries and about
how such data can be used to cast light on a range of policy
issues. Much... Show More +
of the analysis works with household budget
data, collected from income and expenditure surveys. Data
from several different economies are used to illustrate the
analysis, drawing examples of policy issues from economies
as diverse as Cote d'Ivoire, India, Pakistan, South
Africa, Taiwan, and Thailand. One of the aims of the book
is to bring together the relevant statistical and
econometric methods that are useful for building the bridge
between data and policy. Chapter 1 describes those features
of survey design that need to be understood in order to
undertake appropriate analysis. Chapter 2 discusses the
general econometric and statistical issues that arise when
using survey data for estimation and inference. Chapter 3
discusses the use of survey data to measure welfare,
poverty, and distribution. Chapter 4 discusses the use of
household budget data to explore patterns of household
demand. Chapter 5 is about price reform, its effects on
equity and efficiency, and how to measure them. Chapter 6
is concerned with the role of household consumption and
saving in economic development. The book also includes a
code appendix, which gives code and programs using the STATA
code, and serves as a template for the users own analysis. Show Less -
Type: Publication
Report#: 17140
Date: July 31, 1997
Author:
Deaton, Angus
These proceedings from a workshop in
Abidjan, Cote d'Ivoire, organized jointly by the
government of Cote d'Ivoire, the Public Administration
Division of the United Nations... Show More +
Secretariat, and the World
Bank, focus on aiding Francophone African countries with
public sector reform. They draw broadly on best practices
derived from both Anglophone and Francophone Africa, and
from the experiences of the industrialized as well as the
developing countries. The first of two parts comprises
papers, the core of the workshop discussions, concerning
public sector management as viewed by industrialized, then
developing countries. The key themes center on professional
ethics, accountability, and transparency to combat
corruption and deliver improved services. The papers also
present guidelines leading to effective reform, and discuss
better coordination among lenders in supporting reform. In
the second part, country administrators illustrate these
themes by using their countries -Burkina Faso, Botswana,
Uganda, and Cote d'Ivoire- as case studies. This part
ends by reviewing several initiatives creating local
capacity in Mali and Senegal to improve the quality of
public services for users. The third and last part of these
proceedings is devoted to distilling the debate's
essential elements, and presenting the workshop's
conclusions and recommendations. Show Less -
Type: Publication
Report#: WTP357
Date: May 31, 1997
Author:
De Lusignan, Guy ;
Adamolekun, Ladipo ;
Atomate, Armand
This book presents the results of a
project designed to link changes in trade policy with
patterns of producer entry, exit, and adjustment
characterizing developing... Show More +
country producers, using
plant-level data, which reveals micro aspects of the
relation between commercial policy and industrial sector
performance. The researchers used data gathered from the
manufacturing sector of five countries, Chile, Colombia,
Morocco, Turkey, and Mexico to pursue the question of how
industrial sectors in developing countries evolve. The
country studies are collected in part 2, with an overview
provided in chapter 8 of the same part. Part 1 draws
together evidence on a single issue from a number of
countries, focusing on the employment shifts that result
from the entry, growth, and exit of manufacturing plants;
addressing the cross-firm differences in productivity at the
micro level; and quantifying how the turnover process sorts
out efficient and inefficient producers. Other chapters
address the sources of heterogeneity across producers, with
emphasis on the role of economies of scale and foreign
direct investment. Chapter 1 summarizes the main lessons,
particularly, that the degree of producer turnover in the
manufacturing sectors of semi-industrialized countries is on
average GREATER than that found in industrialized countries,
so the competitive pressures are at least as great.
Furthermore, the countries relatively open to trade examined
in this research show no evidence that imports contribute
additional pressure at the margin. Rather, dying plants
become progressively less productive in their final years
while new plants that survive improve rapidly. Since a large
fraction of the manufacturing sector turns over within five
to ten years, policies that inhibit this replacement process
probably have substantial medium- and long-term detrimental
effects on productivity. Show Less -
Type: Publication
Report#: 16196
Date: December 31, 1996
Author:
Roberts, Mark J. ;
Tybout, James R. [editors]
Health care demand price elasticities
are often estimated from samples conditioned to include only
sick people. This paper shows that not only may such
estimates be... Show More +
statistically biased, but even when properly
estimated they can only be interpreted as short-run price
responses. In contrast, unconditional estimates take into
account the long-run feedback of prices on health. The paper
discusses simple strategies for estimating the long-run
unconditional elasticities, which do not depend on
controversial exclusion or functional form restrictions.
Using the Cote d'Ivoire Living Standards Survey, a test
based on the multinomial probit finds that the usual
conditional estimates do not suffer from selection bias.
However, short-run conditional estimates differ
significantly from long-run unconditional ones for several
covariates, with conditional price elasticities being about
25 percent larger than unconditional ones. Show Less -
Type: Publication
Report#: LSM127
Date: November 30, 1996
Author:
Dow, William H.
The book analyzes the decline of Cote
d'Ivoire's celebrated development miracle of the
1960s and 1970s into a major macroeconomic crisis at the
beginning of the 1980s... Show More +
and persistent recession thereafter.
The crisis forced the adoption of a series of unsuccessful
adjustment and stabilization programs. Thus, a new
development strategy is needed to return to a strong growth
path. The first part of the book provides a brief overview
of Cote d'Ivoire's history and economic structure
focusing on the public sector, functioning of export
markets, foreign trade regime, and factors' markets
organization, including the macroeconomic policy aspects of
the money, credit, and capital markets, and their
relationship with the franc zone and the West African
Monetary Union (WAMU). The second part is devoted to the
historical perspective and economic evolution of the crisis
as well as its magnitude, causes, and the difficulties in
overcoming it. The last part is oriented toward the
country's long term prospects. Past structural changes
are discussed. Then, a simple analytical model is presented
to indicate the crucial obstacles to Cote
d'Ivoire's economic recovery. The book closes with
suggestions for possible reforms in the trade regime, in
public sector organization, and in the short-run
macroeconomic decision framework, with special emphasis on
the constraints arising from membership in the franc zone
and the WAMU. Show Less -
Type: Publication
Report#: 15651
Date: May 31, 1996
Author:
Berthelemy, J. C. ;
Bourguignon, F.
This paper examines the economic
performance of East and Southeast Asia and sub-Saharan
Africa, and attempts to identify some of the practical
lessons that Africa can... Show More +
learn from Asia, in order to
facilitate industrial development and export growth.
Africa's factor endowments and economic structures are
quite similar to those found in Southeast Asia in the 1960s.
The Southeast Asian countries - Indonesia, Malaysia and
Thailand - have achieved rapid industrial growth over the
past 3 decades, while Africa has struggled with adjustment,
and witnessed a marginal industrial response. The emergence
of a significant gap in per capita incomes between these two
groups of countries, however, is a relatively new
phenomenon. This suggests hope for Africa, if an appropriate
policy environment can be sustained over a period of years.
In this paper, 3 country comparisons, of Nigeria and
Indonesia, Cote d'Ivoire and Malaysia, and Tanzania,
Ghana and Thailand, illustrate the critical nature of
government policies, such as exchange rate policy and the
role assigned to the agricultural sector. Southeast Asia, in
addition to maintaining the "basics" of
macroeconomic stability, high savings, and investment in
human capital, used several complementary measures to place
the development of exports as the central economic strategy.
A key conclusion of this study is that correct use of the
exchange to maintain export competitiveness was of
fundamental importance in East and Southeast Asia. The paper
also suggests six elements that should be pursued in
industrial lending: the development of training financing
mechanisms; technical assistance programs for enterprises;
the development of simple duty exemption schemes; export
credit support mechanisms; public-private training
institutions; and the development of industrial/export
processing zones. While many of these have been tried in the
past in Africa, this review suggests ways in which their
design could be improved, or where necessary accompanying
policies were missing. As African governments become more
committed to development, and to developing the sort of
long-term vision for their economies that was so crucial in
East Asia, these sort of policies could have a key role to
play in Africa. Show Less -
Type: Publication
Report#: WDP310
Date: April 30, 1996
Author:
Harrold, Peter ;
Jayawickrama, Malathi ;
Bhattasali, Deepak
Contrary to traditional Afro-pessimism,
the Africa's Management in the 1990s (AM90s) research
program illustrates that Africa possesses a substantial
reservoir of capacity... Show More +
endowments and best practices on which
to build in order to improve the institutional and economic
performance of the continent. While not denying the
existence and extent of the economic crisis, the AM90s
research illustrates that institutional reconciliation will
be a key to the institutional and economic development of
Africa. More important, the proposed solutions are mostly
homegrown and are therefore likely to strengthen
self-sufficiency and reduce dependency on foreign
assistance. The overarching theme of the research is that
the institutional crisis affecting economic management in
Africa is a crisis of structural disconnect between formal
institutions transplanted from outside and indigenous
institutions born of traditional African culture. Building
on the findings and recommendations of the new school of
institutional economics, the AM90s research posits that both
formal and informal institutions are here to stay and are
needed in Africa, but in a more flexible form. It is through
adaptation that formal and informal institutions can
converge and build on each other's strength and that
transaction costs can be reduced and institutional
performance maximized. This process for building convergence
is at the heart of institutional reconciliation paradigm
proposed in this report. Show Less -
Type: Publication
Report#: 15306
Date: January 31, 1996
Author:
Dia, Mamadou
How important to India's poor is
the sectoral composition of economic growth? Martin
Ravallion and Gaurav Datt Is debt crisis history? Recent
private capital inflows... Show More +
to developing countries. Michael
Dooley, Eduardo Fernandez-Arias, and Kenneth Kletzer The
surge of capital inflows to developing countries : an
analytical overview. Eduardo Fernandez-Arias and Peter J.
Montiel Introduction : fertility in sub-Saharan Africa.
Martha Ainsworth The impact of women's schooling on
fertility and contraceptive use : a study of fourteen
sub-Saharan African countries. Martha Ainsworth, Kathleen
Beegle, and Andrew Nyamete Fertility and child mortality in
Cote d'Ivoire and Ghana. Kofi Benefo and T. Paul
Schultz Contraceptive use and the quality, price, and
availability of family planning in Nigeria. Bamikale J.
Feyisetan and Martha Ainsworth Fertility, contraceptive
choice, and public policy in Zimbabwe. Duncan Thomas and
John Maluccio Show Less -
Type: Publication
Report#: 15465
Date: January 31, 1996
Author:
Thomas, Duncan ;
Maluccio, John ;
Ravallion, Martin ;
Fernández-Arias, Eduardo ;
Dooley, Michael ;
Beegle, Kathleen ;
Datt, Gaurav ;
Kletzer, Kenneth ;
Benefo, Kofi ;
Schultz, T. Paul ;
Ainsworth, Martha ;
Fevisetan, Bamikale J. ;
Montiel, Peter J. ;
Nyamere, Andrew
The Onchocerciasis Control Programme
(OCP) was initiated in 1974 to control river blindness in
seven countries in West Africa: Benin, Burkina Faso, Cote
d'Ivoire, Ghana,... Show More +
Mali, Niger, and Togo. Later, the
program was expanded to include Guinea, Guinea-Bissau,
Senegal, and Sierra Leone. Today, twenty years after the
inception of control, the OCP is widely regarded as one of
the most effective regional programs ever launched. River
blindness is no longer a public health threat in the
original control zone, and many of the river basins are
being resettled. The Committee of Sponsoring Agencies (CSA),
a statutory body of the OCP, consisting of the Food and
Agriculture Organization, the United Nations Development
Programme, the World Health Organization, and the World
Bank, has supported a series of studies to promote
sustainable settlement and development in the OCP area. Out
of these studies was developed a draft set of guiding
principles for sustainable settlement. In April 1994, the
CSA organized a ministerial meting in Paris to provide a
forum for African policymakers to discuss and modify these
guidelines. The meeting was attended by ministers of
planning, agriculture, environment, and health from the
eleven African countries participating in the OCP, as well
as by representatives of OCP donors and of agencies working
on settlement and environmental issues in West Africa. This
volume contains the papers and speeches delivered at the
meeting, summaries of the substantive discussions that took
place at the meeting, and the guiding for sustainable
settlement and development of the OCP area, as revised and
adopted by the participants of the meeting. Show Less -
Type: Publication
Report#: WTP310
Date: November 30, 1995
Author:
Elder, John ;
Cooley, Laura [editors]
The great successes achieved by the
Onchocerciasis Control Program in West Africa (OCP) in the
large-scale control of the blinding savanna form of
onchocerciasis (river... Show More +
blindness) have allowed vast tracts of
previously abandoned valleys to be resettled and developed.
Among the many issues and problems that have to be
addressed, to ensure the most effective long-term management
of settlement and development in these
onchocerciasis-controlled areas, is that which relates to
the potential impact of those development activities on the
environment. Due to the increasing concern for the welfare
of both aquatic and terrestrial environments, it was
recognized that there was a need for the formulation of an
appropriate methodology for environmental impact assessment.
In 1991 the OCP Committee of Sponsoring Agencies (CSA)
started to address this issue, and in 1993 launched a pilot
project in one selected basin (the Upper Lebara Basin), the
results of which are described in this report. The primary
objective of the Pilot Project were: 1) assessment of the
present environmental situation in the Basin, with a view to
determining potential sources of impact on the aquatic
environment; 2) quantification of chemical loads, and
assessment of modification to the physical environment; and
3) identification of simple study methods which would be
applicable to other areas and which could be offered as
examples to predict environmental impacts of settlement and
development, and offer ways to minimize those impacts. The
following conclusions were made: 1) organic loads and
nutrients were only of relevance along limited stretches of
the main Lebara rivers; 2) the contamination of river water
by pesticides used for cotton protection was calculated by
means of simple models which also permitted the theoretical
concentrations of pesticides in river water to be estimated;
3) with regard to physical changes in the environment, about
75 percent of the original savanna woodland had been cleared
for settlement and for agricultural development. On the
positive side, it was concluded that there had not been any
significant disturbance of the riverine forests and
associated floodplain grasslands of the main rivers. The
overall conclusion from the Pilot Project was that, on the
basis of studies which were limited both in time and scope,
it was possible to make valid and meaningful assessments of
the Upper Lebara Basin, in terms of chemical contamination
of river water, of localized changes in the biological
condition of the aquatic ecosystem, and of physical
degradation of the woodland savanna component of the
terrestrial environment. Finally, in relation to the Pilot
Project's third main objective, the investigations
clearly demonstrated that the techniques employed can be
used as examples of quick and reliable environmental impact
assessment methodologies, which are applicable to other,
similar areas. Show Less -
Type: Publication
Report#: WTP302
Date: November 30, 1995
Author:
Baldry, David ;
Calamari, Davide ;
Yameogo, Laurent
This research explores the relationship
in Cote d'Ivoire between fertility and the investments
made by parents in the schooling of their children. One
expects that families... Show More +
with many children will tend to invest
less in each, and that families with fewer children will
make greater human capital investments per child. The
"tradeoff" of quantity for quality is vividly
illustrated in the recent economic development of Southeast
Asia and Latin America. In respect of Sub-Saharan Africa,
however, the existence of a tradeoff has not yet been
established. The few studies conducted to date either
suggest no particular association between family size and
schooling in Africa, or hint at a positive relationship
wherein higher fertility is linked to greater schooling in
Africa, or hint at a positive relationship wherein higher
fertility is linked to greater schooling per child. Show Less -
Type: Publication
Report#: LSM112
Date: April 1, 1995
Author:
Montgomery, Mark Kouame, Aka Oliver, Raylynn
In the 1980s chronic public sector
deficits forced countries to undertake fiscal adjustment.
The need to face hard choices continues in the 1990s. But
the problem is... Show More +
not a simple and easily diagnosed one with an
obvious solution. Rather, public sector deficits have had
widely differing consequences; high inflation in some
countries, low inflation but also low investment and growth
in others, and in still others no evident short-term
macroeconomic spillovers. This book presents the findings
of a World Bank research project designed to shed light on
the complex dynamics of public sector deficits. It includes
an in-depth examination of eight countries: Argentina,
Chile, Colombia, Cote d'Ivoire, Ghana, Morocco,
Pakistan, and Zimbabwe. These cases are analyzed within a
comprehensive theoretical framework elaborated for the study
and in conjunction with cross-country data from a larger
set. The book draws the following conclusions. The ways
chosen to finance deficits - money creation, debt, or
arrears - go far to explain medium-term financial and
macroeconomic imbalances, but in the short term these
relations are blurred. Deficits tend to be bad for growth;
they increase financial and price instability and crowd out
private investment. Public saving typically reduces private
saving only slightly; increasing public saving is a very
effective policy instrument for raising national saving.
Fiscal adjustment typically leads to a lower trade deficit
and a moredepreciated real exchange rate. Finally, the
blame for large, systemic public deficits must be placed not
on bad luck but on unwise policy choices - and, conversely,
sound fiscal policies can set a country on a path leading to
stability and growth. Show Less -
Type: Publication
Report#: 13905
Date: November 30, 1994
Author:
Easterly, William ;
Rodriguez, Carlos Alfredo ;
Schmidt-Hebbel, Klaus [editors]