Abstract

This report is intended to facilitate the discussions between the World Bank and the Governments of Tamil Nadu and Karnataka, City Governments of Chennai and Bangalore, on possibly expanding the Bank's urban transport assistance in these two cities, and elsewhere in the two states. The report consists of a diagnostic chapter, a discussion of pivotal issues, a reformulated strategy, and a menu of possible Bank-funded projects to support this strategy. Case studies of urban transport in Chennai and Bangalore, the basis for the report, are attached. Document type: Book

Abstract

Latin America and the Caribbean (LAC) does not have the infrastructure it needs, or deserves, given its income. Many argue that the solution is to spend more; by contrast, this report has one main message: Latin America can dramatically narrow its infrastructure service gap by spending efficiently on the right things. This report asks three questions: what should LAC countries’ goals be? How can these goals be achieved as cost-effectively as possible? And who should pay to reach these goals? In doing so, we drop the ‘infrastructure gap’ notion, favoring an approach built on identifying the ‘service gap’. Benchmarking Latin America in this way reveals clear strengths and weaknesses. Access to water and electricity is good, with the potential for the region’s electricity sector to drive competitive advantage; by contrast, transport and sanitation should be key focus areas for further development. The report also identifies and analyses some of the emerging challenges for the region—climate change, increased demand and urbanization—that will put increasing pressure on infrastructure and policy makers alike. Improving the region’s infrastructure performance in the context of tight fiscal space will require spending better on well identified priorities. Unlike most infrastructure diagnostics, this report argues that much of what is needed lies outside the infrastructure sector – in the form of broader government issues—from competition policy, to budgeting rules that no longer solely focus on controlling cash expenditures. We also find that traditional recommendations continue to apply regarding independent, well-performing regulators and better corporate governance, and highlight the critical importance of cost recovery where feasible and desirable, as the basis for future commercial finance of infrastructure services. Latin America has the means and potential to do better; and it can do so by spending more efficiently on the right things. Document type: Book

Abstract

The purpose of this policy note is to respond to the request from the Government of India for the World Bank to provide support to the development of the urban transport agenda in India and to provide lending support. During the discussions between the World Bank and the Government of India represented by the Ministry of Finance, the Department of Economic Affairs (DEA) agreed on a three year program of support 2005-2008 reflected in the World Bank's Country Strategy for India September 15, 2004. Support is currently reflected in the operations program as an urban transport project under consideration and as a policy note as part of the non-lending services. In conjunction with these operations support to urban roads are included in Chennai under the Tamil Nadu Third Urban Development Project and in Bangalore under the Karnataka Municipal Reform Project. Document type: Book

Abstract

Myanmar’s decentralization of governance, financing and service delivery is taking place against aparticularly challenging backdrop. Myanmar is a country with considerable geographic and socialdiversity and a history of isolation, conflict and underdevelopment. Decades of civil conflict and tight military rule have marked Myanmar’s political, social and economic life since its independence from British rule in 1948, and left a host of historical institutional legacies including underrepresentation of women, civil service norms that prioritize compliance over performance, bureaucratic silos and weak public investment management, that still impact the country today. Political and economic transitions, begun in 2011, have promoted growth and improved welfare outcomes, though the benefits have not been equally shared with all groups or geographic areas. There remain extreme variations in the provision and quality of public infrastructure and services, reflected in large disparities per capita income and humandevelopment outcomes. These inequalities are widening, economic growth is spatially concentratedin the growth poles of Yangon and Mandalay, while rural and remote areas, such as those on the Shanplateau, are isolated from the centers of growth. The Myanmar subnational PER examines Myanmar’s nascent subnational institutions, focusing on governance, union-local administrative and fiscal relations and service delivery from a local perspective. The aim is to identify pragmatic and practicable policy options for incrementally strengthening the institutional capacity and inclusiveness of subnational governments within the confines of the current constitution. While political debate on the future shape of a federal Myanmar continues, reforming local governance institutions, within the considerable space available in the current constitution, as suggested throughout the PER, is an important way to support “federalism from below”, promoting a more sustainable, inclusive and accountable system of governance and fiscal management that better reflects Myanmar’s considerable social and economic heterogeneity.

Abstract

Fiscal policy refers to the use of government spending and tax policies to influence economic conditions. Fiscal policies have existed for a long time, with major debates between proponents of the Keynesian model and the monetary approach. Fiscal policy can either be contractionary, expansionary, or neutral. This study analyses the literature on the effect of the national budget on banks performance; effect of Taxation on bank performance; and the effect of public expenditure on performance of Banks in Kenya. The literature shows that government expenditure is a good fiscal policy measure in terms of the positive performance of commercial banks however, there is a need to consider the issue of corruption that negatively affects the expenditure controls that are crucial in an effective government approach in terms of the way the authorities ensure effective expenditure programs. Budget surplus and the positive impact on banks’ lending, no direct or clear argument shows the role of budgeting on commercial banks' performance. Taxes also play an important role in developing infrastructures that are crucial for the improved performance of firms. However, gaps exist in literature that needs to explored by further studies.