Download or read book Risk Taxpayers and the Role of Government in Project Finance written by Michael W. Klein and published by World Bank Publications. This book was released on 1999 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: December 1996 A perennial question has been the relative cost of public and private finance for investment projects in infrastructure. Klein argues that the apparent cheapness of sovereign funds stems from taxpayers' not being remunerated for the contingent liability they effectively assume. So the proper role for government is to reduce the cost of risk-bearing for all projects by providing a stable and efficient policy framework. Klein concludes that government, through the tax system, cannot really do better than private financial markets at funding infrastructure projects. All the financial advantages of sovereign finance are due purely to coercive powers and are of no social value. Under government finance the taxpayers would bear a contingent liability that, if properly remunerated, would wipe out any cost advantage of sovereign borrowing. Governments should then refrain from investing in projects or firms, whether with equity or with debt. They should not cover commercial risks. In particular, one cannot argue that there is a tradeoff between the low cost of government finance and private efficiency. Private markets will do the best they can to tap low-cost funds while maintaining project discipline. They solve whatever tradeoff there is. The government cannot do better by raising funds. As a corollary, discount rates for private and public sector projects would not be expected to differ (contrary to standard practice). Arguing that the government cannot be expected to improve on the outcome of free financial markets is not to argue that all is the best in the best of all possible worlds and that there is no role for government. Private markets may not always find the best solutions. Market participants constantly search for better ways of trading risks. On average we could not expect governments to do better. More important, governments can significantly reduce the cost of risk-bearing by following prudent macroeconomic policies, supporting secure property rights, and deregulating and liberalizing financial markets so that private players can take the best advantage of low-cost funding opportunities. But it is inefficient to offset the risks created through bad policy by taxpayer-supported funding (which would amount to stealing from investors and compensating them by taking from taxpayers). Multilateral finance institutions should apply their financial instruments to support the development of better government policies - for example, by granting guarantees against policy failures where new policy regimes are not yet credible - and not simply invest in projects or guarantee the full credit risk of loans. This paper - a product of the Private Participation in Infrastructure Group, Private Sector Development Department - is part of a larger effort in the department to analyze issues relating to private participation in infrastructure.
Download or read book Government Guarantees written by Timothy Irwin and published by World Bank Publications. This book was released on 2007 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book considers when governments should give guarantees to private investors. After describing the history of guarantees, and the challenges the politics and psychology create for good decisions, the book sets out a principles for allocating risk (and therefore guarantees), techniques for valuing guarantees, and rules to encourage good decisions.
Download or read book Mastering the Risky Business of Public Private Partnerships in Infrastructure written by Manal Fouad and published by International Monetary Fund. This book was released on 2021-05-10 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment in infrastructure can be a driving force of the economic recovery in the aftermath of the COVID-19 pandemic in the context of shrinking fiscal space. Public-private partnerships (PPP) bring a promise of efficiency when carefully designed and managed, to avoid creating unnecessary fiscal risks. But fiscal illusions prevent an understanding the sources of fiscal risks, which arise in all infrastructure projects, and that in PPPs present specific characteristics that need to be addressed. PPP contracts are also affected by implicit fiscal risks when they are poorly designed, particularly when a government signs a PPP contract for a project with no financial sustainability. This paper reviews the advantages and inconveniences of PPPs, discusses the fiscal illusions affecting them, identifies a diversity of fiscal risks, and presents the essentials of PPP fiscal risk management.
Download or read book Public Private Partnership Projects in Infrastructure written by Jeffrey Delmon and published by Cambridge University Press. This book was released on 2011-01-31 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment in infrastructure is critical to economic growth, quality of life, poverty reduction, access to education, healthcare, and achieving many of the goals of a robust economy. But infrastructure is difficult for the public sector to get right. Public-private partnerships (PPPs) can help; they provide more efficient procurement, focus on consumer satisfaction and life cycle maintenance, and provide new sources of investment, in particular through limited recourse debt. But PPPs present challenges of their own. This book provides a practical guide to PPPs for policy makers and strategists, showing how governments can enable and encourage PPPs, providing a step-by-step analysis of the development of PPP projects, and explaining how PPP financing works, what PPP contractual structures look like, and how PPP risk allocation works in practice. It includes specific discussion of each infrastructure sector, with a focus on the strategic and policy issues essential for successful development of infrastructure through PPPs.
Download or read book Financing Metropolitan Governments in Developing Countries written by Roy W. Bahl and published by Lincoln Inst of Land Policy. This book was released on 2013 with total page 430 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economic activity that drives growth in developing countries is heavily concentrated in cities. Catchphrases such as “metropolitan areas are the engines that pull the national economy” turn out to be fairly accurate. But the same advantages of metropolitan areas that draw investment also draw migrants who need jobs and housing, lead to demands for better infrastructure and social services, and result in increased congestion, environmental harm, and social problems. The challenges for metropolitan public finance are to capture a share of the economic growth to adequately finance new and growing expenditures and to organize governance so that services can be delivered in a cost-effective way, giving the local population a voice in fiscal decision making. At the same time, care must be taken to avoid overregulation and overtaxation, which will hamper the now quite mobile economic engine of private investment and entrepreneurial initiative. Metropolitan planning has become a reality in most large urban areas, even though the planning agencies are often ineffective in moving things forward and in linking their plans with the fiscal and financial realities of metropolitan government. A growing number of success stories in metropolitan finance and management, together with accumulated experience and proper efforts and support, could be extended to a broader array of forward-looking programs to address the growing public service needs of metropolitan-area populations. Nevertheless, sweeping metropolitan-area fiscal reforms have been few and far between; the urban policy reform agenda is still a long one; and there is a reasonable prospect that closing the gaps between what we know how to do and what is actually being done will continue to be difficult and slow. This book identifies the most important issues in metropolitan governance and finance in developing countries, describes the practice, explores the gap between practice and what theory suggests should be done, and lays out the reform paths that might be considered. Part of the solution will rest in rethinking expenditure assignments and instruments of finance. The “right” approach also will depend on the flexibility of political leaders to relinquish some control in order to find a better solution to the metropolitan finance problem.
Download or read book Tax Administration 2021 Comparative Information on OECD and other Advanced and Emerging Economies written by OECD and published by OECD Publishing. This book was released on 2021-09-15 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report is the ninth edition of the OECD's Tax Administration Series. It provides internationally comparative data on aspects of tax systems and their administration in 59 advanced and emerging economies.
Download or read book The New Dynamic Public Finance written by Narayana R. Kocherlakota and published by Princeton University Press. This book was released on 2010-07-01 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are bad insofar as they discourage people from working, but good to the degree that, by redistributing wealth, they help insure people against productivity shocks. Until recently, however, economic research on this question either ignored people's uncertainty about their future productivities or imposed strong and unrealistic functional form restrictions on taxes. In response to these problems, the new dynamic public finance was developed to study the design of optimal taxes given only minimal restrictions on the set of possible tax instruments, and on the nature of shocks affecting people in the economy. In this book, Narayana Kocherlakota surveys and discusses this exciting new approach to public finance. An important book for advanced PhD courses in public finance and macroeconomics, The New Dynamic Public Finance provides a formal connection between the problem of dynamic optimal taxation and dynamic principal-agent contracting theory. This connection means that the properties of solutions to principal-agent problems can be used to determine the properties of optimal tax systems. The book shows that such optimal tax systems necessarily involve asset income taxes, which may depend in sophisticated ways on current and past labor incomes. It also addresses the implications of this new approach for qualitative properties of optimal monetary policy, optimal government debt policy, and optimal bequest taxes. In addition, the book describes computational methods for approximate calculation of optimal taxes, and discusses possible paths for future research.
Download or read book Public Private Partnership Projects in Infrastructure written by Jeffrey Delmon and published by Cambridge University Press. This book was released on 2017-10-12 with total page 269 pages. Available in PDF, EPUB and Kindle. Book excerpt: Infrastructural investment is critical to economic growth, quality of life, poverty reduction, access to education, health care, and the achievement of many of the goals of a robust economy. But infrastructure is difficult for the public sector to get right. Public–private partnerships (PPPs) can help; they can provide more efficient procurement, focus on consumer satisfaction and lifecycle maintenance, and provide new sources of investment, in particular through limited recourse debt. But PPPs present challenges of their own. This book provides a practical guide to PPPs for policy makers and strategists, showing how governments can enable and encourage PPPs; providing a step-by-step analysis of the development of PPP projects; and explaining how financing works, what contractual structures look like, and how risk allocation works in practice. It includes specific discussion of each infrastructure sector, with a focus on the strategic and policy issues essential for successful development of infrastructure through PPPs. This second edition includes new sections on institutional frameworks, mechanisms for leveraging public financing, small scale PPP projects and more.
Download or read book Innovative Funding and Financing for Infrastructure written by Jeff Delmon and published by Cambridge University Press. This book was released on 2024-01-31 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: A guide to innovative sources of revenues and finance to increase investment opportunities in infrastructure and conserve public resources.
Download or read book Public Private Partnerships in the Caribbean Region written by Mr.Maximilien Queyranne and published by International Monetary Fund. This book was released on 2019-05-08 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: To provide policymakers in the Caribbean with a governance framework for improving infrastructure through Public-Private Partnerships (PPPs), while limiting their fiscal costs and risks for the government. And to showcase Canada support to FAD technical assistance in the region and FAD collaboration with CARTAC and the Caribbean Development Bank
Download or read book Fiscal Regimes for Extractive Industries Design and Implementation written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2012-08-16 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Better designed and implemented fiscal regimes for oil, gas, and mining can make a substantial contribution to the revenue needs of many developing countries while ensuring an attractive return for investors, according to a new policy paper from the International Monetary Fund. Revenues from extractive industries (EIs) have major macroeconomic implications. The EIs account for over half of government revenues in many petroleum-rich countries, and for over 20 percent in mining countries. About one-third of IMF member countries find (or could find) resource revenues “macro-critical” – especially with large numbers of recent new discoveries and planned oil, gas, and mining developments. IMF policy advice and technical assistance in the field has massively expanded in recent years – driven by demand from member countries and supported by increased donor finance. The paper sets out the analytical framework underpinning, and key elements of, the country-specific advice given. Also available in Arabic: ????? ??????? ?????? ???????? ???????????: ??????? ???????? Also available in French: Régimes fiscaux des industries extractives: conception et application Also available in Spanish: Regímenes fiscales de las industrias extractivas: Diseño y aplicación
Download or read book Financial sector taxation written by [Anonymus AC08741538] and published by . This book was released on 2010 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The global economic and financial crisis has created important needs for fiscal consolidation. This document analyses potential instruments to raise additional tax revenues from the financial sector. The first section reviews the current policy objectives related to the taxation of the financial sector. The second section sheds some light on the current tax treatment of the financial sector. The third section discusses potential tax instruments to reach the goals. The fourth and fifth section respectively assess the advantages and drawbacks of a Financial Transaction Tax and a Financial Activities Tax."--Editor.
Download or read book A Decision Makers Guide to Public Private Partnerships in Airports written by Andy Ricover and published by Routledge. This book was released on 2019-12-06 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt: Airport development is critical to economic growth and poverty reduction. This book will help decision-makers assess whether Public Private Partnerships (PPP) might be a viable option to meet their airport development requirements. It walks the reader through the airport PPP process, from early preparation to bringing the project to market and managing the project during implementation. The book will help eradicate misconceptions about the role of the private sector in airport infrastructure. A Decision-Makers Guide to Public Private Partnerships in Airports provides an essential guide for those in a position to make decisions linked to airport development, to their advisers, their staff and also to students wishing to understand airport PPP.
Download or read book Public private Partnerships Policy and Practice written by H. K. Yong and published by Commonwealth Secretariat. This book was released on 2010 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public-Private Partnerships Policy and Practice is a comprehensive reference guide on PPP theory and practice for senior policy-makers and other public sector officials in developing countries. The guide focuses on the key lessons learned - and emerging best practice - from successful and failed PPP transactions over the past thirty years. The guide avoids jargon and explains relevant concepts in non-specialist language. Key points are summarised at the beginning of each section and provide an overall high-level outline. References are provided throughout and at the end of each section to allow the reader to access further information on specific issues.
Download or read book Guide to Municipal Finance written by Naomi Enid Slack and published by UN-HABITAT. This book was released on 2009 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Making Money Matter written by National Research Council and published by National Academies Press. This book was released on 1999-11-30 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United States annually spends over $300 billion on public elementary and secondary education. As the nation enters the 21st century, it faces a major challenge: how best to tie this financial investment to the goal of high levels of achievement for all students. In addition, policymakers want assurance that education dollars are being raised and used in the most efficient and effective possible ways. The book covers such topics as: Legal and legislative efforts to reduce spending and achievement gaps. The shift from "equity" to "adequacy" as a new standard for determining fairness in education spending. The debate and the evidence over the productivity of American schools. Strategies for using school finance in support of broader reforms aimed at raising student achievement. This book contains a comprehensive review of the theory and practice of financing public schools by federal, state, and local governments in the United States. It distills the best available knowledge about the fairness and productivity of expenditures on education and assesses options for changing the finance system.
Download or read book Government Finance Statistics Manual 2001 written by International Monetary Fund and published by International Monetary Fund. This book was released on 2001-12-19 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Manual, which updates the first edition published in 1986, is a major advance in the standards for compilation and presentation of fiscal statistics. It is intended as a reference volume for compilers of government finance statistics, fiscal analysts, and other users of fiscal data. The Manual introduces accrual accounting, balance sheets, and complete coverage of government economic and financial activities. It covers concepts, definitions, classifications, and accounting rules, and provides a comprehensive framework for analysis, planning, and policy determination. To the extent possible, the Manual has been harmonized with the System of National Accounts 1993.
