DOCSLIB.ORG

Infrastructure Delivery Private Initiative and the Public Good Public Disclosure Authorized

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Infrastructure Delivery Private Initiative and the Public Good Public Disclosure Authorized hm6> Economic Development Institute 10l04 of The World Bank Public Disclosure Authorized Infrastructure Delivery Private Initiative and the Public Good Public Disclosure Authorized Edited by Ashoka Mody Public Disclosure Authorized EDI DEVELOPMENT STUDIES Public Disclosure Authorized Other EDI Development Studies (In order of publication) Trade, Technology,and internationalCompetitiveness Irfan ul Haque Corporate Governance in Transitional Economies: Insider Control and the Role of Banks Edited by Masahiko Aoki and Hyung-Ki Kim Unemployment, Restructuring, and the LaborMarket in Eastern Europeand Russia Edited by Simon Commander and Fabrizio Coricelli Monitoring and Evaluating Social Programs in Developing Countries: A Handbookfor Policymakers, Managers, and Researchers Joseph Valadez and Michael Bamberger Agroindustrial Investment and Operations James G. Brown with Deloitte & Touche LaborMarkets in an Era of Adjustment Edited by Susan Horton, Ravi Kanbur, and Dipak Mazumdar Vol. l. Issues Papers; Vol. 2. Case Studies Does Privatization Deliver? Highlights from a World Bank Conference Edited by Ahmed Galal and Mary Shirley The Adaptive Economy: Adjustment Policies in Small, Low-Income Couintries Tony Killick Financial Regulation: Changing the Rules of the Game Edited by Dimitri Vittas The Distribution of Income and Wealt)hin Korea Danny Leipziger and others Public Enterprise Reform: The Lessons of Experience Mary Shirley and John Nellis (Also available in French and Spanish) Privatization and Control of State-Owned Enterprises Edited by Ravi Ramamurti and Raymond Vernon Finance at the Frontier:Debt Capacity and the Role of Credit in the Private Economy J. D. Von Pischke EDI DEVELOPMENT STUDIES Infrastructure Delivery PrivateInitiative and the Public Good Edited by Ashoka Mody The World Bank Washington, D. C. Copyright © 1996 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing August 1996 The Economic Development Institute (EDI) was established by the World Bank in 1955 to train officials concerned with developmentplanning, policymaking, investment analysis, and project implementation in member developing countries. Atpresent the substance of the EDI's work emphasizes macroeconomic and sectoral economic policy analysis. Through a variety of courses, seminars, and workshops, most of which are given overseas in cooperation with local institutions, the EDI seeks to sharpen analytical skills used in policy analysis and to broaden understanding of the experience of individual countries with economic development. Al- though the EDI's publications are designed to support its training activities, many are of interest to a much broader audience. EDI materials, including any findings, interpretations, and conclusions, are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. Because of the informality of this series and to make the publication available with the least possible delay, the manuscript has not been edited as fully as would be the case with a more formal document, and the World Bank accepts no responsibility for errors. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to photocopy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A. The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list (with full ordering information) and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from the Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, Banque mondiale, 66, avenue d'Iena, 75116 Paris, France. At the time of writing, Ashoka Mody was principal financial economist in the World Bank's Cofinancing and Project Finance Department. Library of Congress Cataloging-in-Publication Data Infrastructure delivery: private initiative and the public good / edited by Ashoka Mody. p. cm. - (EDI development studies, ISSN 1020-105X) Includes bibliographical references and index. ISBN 0-8213-3520-0 1. Infrastructure (Economics) 2. Infrastructure (Economics) - Finance. 3. Infrastructure (Economics) - Developing countries. I. Mody, Ashoka. II. Series. HC79.C31516 1996 363-dc2O 95-39451 CIP Contents Foreword vii Preface ix Contributors xi Overview Infrastructure Delivery: New Ideas, Big Gains, No Panaceas xiii AshokaMody Chapter 1 No Single Path: Ownership and Financing of Infrastructure in the 19th and 20th Centuries 1 CharlesD. Jacobsonand JoelA. Tarr Chapter 2 Exploiting New Market Opportunities in Telecommunications 37 VeroniqueBishop, Ashoka Mody, and Mark Schankerman Chapter 3 Principles of Regulatory Policy Design 79 David E. M. Sappington Chapter 4 Financing Infrastructure in Developing Countries: Lessons from the Railway Age 107 Barry Eichengreen Chapter 5 The Public Finance of Infrastructure: Issues and Options 129 VinayaSwaroop Chapter 6 The Role of Export Credit Agencies in the Foreign Financing of Infrastructure in Developing Countries 149 Ning S. Zhu iii iv Contents Chapter 7 Project Finance in Practice: The Case Studies ThomasH. Pyle 171 Chapter 8 Methods of Loan Guarantee Valuation and Accounting AshokaMody and Dilip Kumar Patro 191 Index 221 Boxes Box 2.1 China Introduces Competition 56 Box 2.2 Long-Distance Competition in Mexico 57 Box 2.3 Interconnection in Poland 66 Box 2.4 Legal Test of Efficient Components Pricing 68 Box 2.5 Unbundling the Government's Role in Mexico and Malaysia 70 Box 8.1 The Basic Black-ScholesOption Pricing Analysis 199 Tables Table 1 Sectoral Strategies for Competition and Regulation xx Table 2 Project Financing of Funded Infrastructure Projects, by Sector, October 1993 xxxii Table 1.1 Ownership and Financing of U.S. Infrastructures 6 Table 2.1 Annual Telecommunications Investment Requirements for Developing Countries 45 Table 4.1 The Proportion of Overseas New Issues Introduced by the Main Types of British Issuing Houses, 1870-1914 115 Table 4.2 Distribution of Total Flow of Capital to Canada, 1900-1914 120 Table 4.3 Gross Construction Outlays in Major Transport Fields in Canada, 1901-1930 121 Table 5.1 Road User Taxes and Charges 140 Table 6.1 Long-Term Export Credits 155 Table 6.2 Long-Term Export Credits to Infrastructure Sectors 155 Table 6.3 Long-Term Infrastructure Export Credits to Countries by Income Categories 157 Table 6.4 Long-Term Export Credits for the Major Recipients 157 Contents v Table 6.5 Interest Rates and Maturities for Long-Term Export Credits 158 Table 6.6 Share of Export Credits Financed or Refinanced by ECAs 159 Table 7.1 Hopewell Energy (Philippines) Corporation Project: Costs and Financing 177 Table 7.2 Shajiao C: Costs, Financing, and Guarantees 182 Table 8.1 Guarantee as a Put Option 197 Table 8.2 Implied Values of Guarantees on Corporate Bonds 201 Table 8.3 Subsidy Cost Rates for Different Risk Ratings and Loan Maturities 203 Table 8.4 Sensitivity in Guarantee Values and Interest Rate Benefits 206 Table 8.5 Risk Profile and Guarantee Value 206 Table 8.6 Accounting for Loans and Guaranteed Loans, before and after Accounting Reform 211 Table 8.7 Budgetary Treatment of Eximbank 217 Figures Figure 1 Unbundling Activities Increases the Options for Competition and Private Sector Development xix Figure 2 Options for Financing Increase with Administrative Capacity and Maturity of Domestic Capital Markets xxx Figure 2.1 Direction of Liberalization of the Telecommunications Sector 40 Figure 2.2 GNP vs. Main Lines per Capita, 1983 and 1992 in Low- to Middle-Income Countries 42 Figure 2.3 Waiting Lists as a Percentage of Main Lines, 1992 43 Figure 2.4 India and Chile: Wait Lists and Main Lines 44 Figure 6.1 Annual Export Credits: Actual and Trend 154 Figure 6.2 Long-Term Export Credits to Infrastructure Sectors 154 Figure 6.3 Share of Long-Term Export Credits to Top Recipient Countries 156 Figure 7.1 Model Financial Structure of an Asian Power Generation Project 173 Figure 8.1 System of Accounts under Credit Reform 215 Foreword As governments move toward increasing private provision of infrastruc- ture, the benefits are evident in more and better services. However, the brief recent experience has also demonstrated that many challenges lie ahead. To effectively harness private initiative to meet the objectives of efficiency and fairness, governments themselves must gear up to deal with a new and sophisticated range of contracting, regulatory, and financial mechanisms. While much can be gained through a continued movement away from government to private provision, the benefits are unlikely to be either quickly or easily realized. The essays in this book grew out of background papers for World Devel- opment Report 1994, which focused on infrastructure and development. Ex- tensively revised and reworked, these essays present keen perspectives
Load more

Recommended publications
  • World Bank Document
    POLICY RESEARCH WORKING PAPER 2112 Public Disclosure Authorized IndustrialPolicy after BeforeEastAsia's hnancial meltdown in 1997, many the East Asian Crisis believed that the entrepreneurial state Fromc"Outward Orientation" contributed to the East Asian Public Disclosure Authorized From "Outward Orientation "miracle"by accelerajrng to New Internal Capabilities? industrial deveiopment in a "market-friendly" way. The Ashoka Mody now-evoiving internaLional consensuson induseriSaUolicy emphasizes a hands-off approach, with acrivust government playing a reduced role and competition Public Disclosure Authorized policy playing an important role. But imoDlerernincj such a policy wUil require sophisticated nevt' skills in public administration. Public Disclosure Authorized The World Bank Development Prospects Group May 1999 POLICY RESEARCH WORKING PAPER 21 12 Summary findings Before East Asia's financial meltdown in the second half But policies emphasizing greater competition and a of 1997, there appeared to be prospects for an uneasy level playing field - implicitly thought to require less consensus on the East Asian "miracle," a consensus that government action - may require more government recognized the role of the entrepreneurial state in expertise, not less. If implementing a 10 percent export accelerating industrial development but emphasized the subsidy is difficult, consider the difficulty of determining "market-friendly" nature of the state's interventions. whether a firm is exercising market power or restraining After the financial crisis, East Asian policies and trade. So the prospect of governments stepping back may institutions are once again under scrutiny -for their be unrealistic. failures rather than for their miracles. The new consensus also proposes "deep integration," Mody finds that the prospects for a consensus that or the adoption of uniform standards in such areas as incorporated the East Asian experience were ill founded.
    [Show full text]
  • 2013 Annual Report
    Annual Report www.bruegel.org ABOUT BRUEGEL 2 BRUEGEL ANNUAL REPORT 2013 CONTENTS CHAIRMAN’S MESSAGE P.5 DIRECTOR’S INTRODUCTION P.6 ABOUT BRUEGEL P.7 BRUEGEL AT A GLANCE P.8 RESEARCH STRATEGY P.12 EVALUATION P.13 REVIEW TASK FORCE P.14 TALENTS P.16 STAFF LIST P.17 A NEW DIRECTOR P.19 RESIDENT SCHOLARS P.20 A GLOBAL NETWORK OF TALENTS P.22 IDEAS P.24 THE YEAR IN REVIEW P.25 OUTREACH IN 2013 P.32 GOVERNANCE P.34 GOVERNANCE MODEL P.35 A NEW BOARD P.36 MEMBERS P.37 VALUES P.38 FINANCIAL STATEMENTS P.39 AUDITOR’S REPORT P.43 ANNEX P.45 PUBLICATIONS IN 2013 P.46 BRUEGEL BLOG IN 2013 P.48 EVENTS IN 2013 P.49 PARLIAMENTARY TESTIMONIES IN 2013 P.52 RESEARCH PARTNERSHIPS (2010-2013) P.53 BRUEGEL ANNUAL REPORT 2013 CHAIRMAN’S MESSAGE “A year marked by novelty, risk, challenges and decision making.” In many respects, 2013 was a turning point for Bruegel – a year from policy impact to financial efficiency. Both groups commended marked by novelty, risk, challenges and decision making. I am proud the organization’s independence and credibility, while also warning to report that, in this process, the organisation not only proved of challenges ahead and showing the way towards continued its solidity and its worth but also explored new areas for shaping improvement. Their conclusions inform Bruegel’s research strategy, economic policy. infused with fresh thinking for the next three years. Since it started operations nine years ago, Bruegel established three- Nine years into the job of improving the quality of economic policy, year cycles as relevant timeframes to Bruegel thus is able to both look back and plan and assess its work.
    [Show full text]
  • Implications for Financing and Evaluation Proceedings from a World Bank Workshop
    GlobalPublicPolicies_0515.qxd 8/15/01 9:21 AM Page i WORLD BANK OPERATIONS EVALUATION DEPARTMENT Global Public Policies and Programs: Implications for Financing and Evaluation Proceedings from a World Bank Workshop Edited by Christopher D. Gerrard Marco Ferroni Ashoka Mody 2001 The World Bank www.worldbank.org/html.oed Washington, D.C. GlobalPublicPolicies_0515.qxd 8/15/01 9:21 AM Page ii Copyright ©2001 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing June 2001 1 2 3 4 04 03 02 01 The opinions expressed in this report do not necessarily represent the views of the World Bank or its member governments. The World Bank does not guarantee the accuracy of the data included in this pub- lication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, col- ors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or accept- ance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly. Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use is granted by the World Bank, provided that the appropriate fee is paid directly to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, U.S.A., telephone 978–750–8400, fax 978–750–4470.
    [Show full text]
  • Ashoka Mody Page 1
    Ashoka Mody Page 1 Ashoka Mody 6816 Millwood Road Woodrow Wilson School of Public Bethesda, MD 20817 and International Affairs (301) 263 0293 Princeton University [email protected] Princeton, NJ 08544 (609) 258 4768 E-mail: [email protected] http://scholar.princeton.edu/amody Ashoka Mody is Charles and Marie Robertson Visiting Professor in International Economic Policy at the Woodrow Wilson School, Princeton University. Previously, he was Deputy Director in the International Monetary Fund’s Research and European Departments. He was responsible for the IMF’s Article IV consultations with Germany, Ireland, Switzerland, and Hungary, and also for the design of Ireland's financial rescue program. Earlier, at the World Bank, his management positions included those in Project Finance and Guarantees and in the Prospects Group, where he coordinated and was principal author of the Global Development Finance Report of 2001. He has advised governments worldwide on developmental and financial projects and policies, while writing extensively for policy and scholarly audiences. Mody has been a Member of Staff at AT&T’s Bell Laboratories, a Research Associate at the Centre for Development Studies, Trivandrum, and a Visiting Professor at the University of Pennsylvania’s Wharton School. He is a non-resident fellow at the Center for Financial Studies, Frankfurt and the Center for Global Government, Washington D.C. He received his Ph.D. in Economics from Boston University. His academic research, motivated by and drawing closely on his policy responsibilities, has focused on international finance and political economy. His recent research has been on the European Union, especially the euro zone crisis.
    [Show full text]
  • Page 2 Macroeconomic Policies and Poverty Reduction Macroeconomic
    Macroeconomic Policies and Poverty Reduction Macroeconomic Policies and Poverty Reduction goes beyond the traditional literature on poverty, dealing with this critical topic in a technically sophisticated, yet accessible, manner. Recognizing that economic growth is crucial for poverty reduction, this book nevertheless emphasizes the importance of particular country circumstances in mediating the relationship between growth and poverty reduction. The innovative essays use country case studies to analyze how the political economy of budgetary decisions, financial reforms, and trade liberalization, and periods of crises affect inequality and poverty. Fresh perspective on the international context is offered through studies of odious debt as an additional rationale for debt relief and uncoordinated and volatile aid flows. Contributors include Anne Krueger, Nicholas Stern, Orazio Attanasio, François Bourguignon, Ravi Kanbur, Michael Kremer, Martin Ravallion, and Robert Townsend. Ashoka Mody and Catherine Pattillo are at the International Monetary Fund. Routledge Studies in the Modern World Economy 1 Interest Rates and Budget Deficits A study of the advanced economies Kanhaya L.Gupta and Bakhtiar Moazzami 2 World Trade after the Uruguay Round Prospects and policy options for the twenty-first century Edited by Harald Sander and András Inotai 3 The Flow Analysis of Labour Markets Edited by Ronald Schettkat 4 Inflation and Unemployment Contributions to a new macroeconomic approach Edited by Alvaro Cencini and Mauro Baranzini 5 Macroeconomic Dimensions
    [Show full text]
  • Placement Guide 2019-21: M.A. in Applied Economics
    Centre for Development Studies PLACEMENT GUIDE (2019-21) M.A. in Applied Economics Affiliated to Jawaharlal Nehru University, New Delhi Contents Director & Program Coordinator's Messages 3-4 Why CDS? 5 About Us 6 Infrastructure 7-8 Events 9-10 Talks 11 Faculty 12-14 Visiting Professors / Fellows 15 Distinguished Alumni 16 Organizations that Alumni are associated with 17 Alumni Talk 18-19 About the Programme 20-22 Student Details 23-31 Contact Us 32 Director's Message The CDS started a new Master’s programme in Applied Economics during the academic year 2012-13. The programme is affiliated to Jawaharlal Nehru University, New Delhi and within a matter of seven years has found a place as one of the top Master’s level courses in Economics in the country. This is evidenced by the fact that the course has attracted considerable interest from very discerning graduates from some of the best universities in the country and that too in large numbers. Some of our alumni has secured places for pursuing Ph.D. research at some of the top universities in the world such as the University of Oxford, University of Chicago, State University of New York and University of Texas at Austin, Duke besides JNU itself and at the indian Instifute of management Calcutta. Further, some of the top consulting companies have been recruiting directly from this Centre year on year. Hitherto, the programme has graduated 139 students over 7 batches and the 8th batch is to graduate by the month of May 2021. The ongoing corona virus crisis has delayed our admission process for the 10th batch, but we hope to bring them aboard later this year.
    [Show full text]
  • Suman Bery Barry Bosworth Arvind Panagariya
    EDITED BY Suman Bery Barry Bosworth Arvind Panagariya NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH New Delhi BROOKINGS INSTITUTION Washington, D.C. Copyright © 2011 NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH (NCAER) AND BROOKINGS INSTITUTION First published in 2011 by SAGE Publications India Pvt Ltd B1/I 1, Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044, India www.sagepub.in SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320, USA SAGE Publications Ltd 1 Oliver’s Yard, 55 City Road London EC1Y 1SP, United Kingdom SAGE Publications Asia-Pacifi c Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 Library of Congress Serial Publication Data applied for ISBN: 978-81-321-0747-7 (PB) All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. Published by Vivek Mehra for SAGE Publications India Pvt Ltd, typeset in 10.5/13 pt Times by Star Compugraphics Private Limited, Delhi and printed at Chaman Enterprises, New Delhi. Editors’ Summary ix BARRY EICHENGREEN and POONAM GUPTA The Service Sector as India’s Road to Economic Growth? 1 Comments by Pronab Sen 38 General Discussion 39 ASHOKA MODY, ANUSHA NATH, and MICHAEL WALTON Sources of Corporate Profi ts in India: Business Dynamism or Advantages of Entrenchment? 43 Comments by Rajnish Mehra and Basanta Pradhan 85 General Discussion 91 RAM SINGH Determinants of Cost Overruns in Public Procurement of Infrastructure: Roads and Railways 97 Comments by Shashanka Bhide and Kenneth Kletzer 145 General Discussion 153 LORI BEAMAN, ESTHER DUFLO, ROHINI PANDE, and PETIA TOPALOVA Political Reservation and Substantive Representation: Evidence from Indian Village Councils 159 Comments by Devesh Kapur and Hari Nagarajan 192 General Discussion 198 T.
    [Show full text]
  • The Response Speed of the International Monetary Fund
    International Finance 16:2, 2013: pp. 189–211 DOI: 10.1111/j.1468-2362.2013.12031.x The Response Speed of the International Monetary Fundà y z Ashoka Mody and Diego Saravia y z Woodrow Wilson School of Princeton University, and Central Bank of Chile, Research Department Abstract The more severe a financial crisis, the greater has been the likelihood of its management under an IMF‐supported programme and shorter the time from crisis onset to programme initiation. Political links to the United States have raised programme likelihood but have prompted faster response mainly for ‘major’ crises. Over time, the IMF’s response has not been robustly faster, but the time sensitivity to the more severe crises and those related to fixed exchange rate regimes did increase from the mid‐1980s. Similarly, democracies had earlier tended to stall programme initiation but have turned supportive of financial markets’ demands for quicker action. I. Introduction Much scholarly attention has focused on the factors that have led to the International Monetary Fund’s financial safety net for countries facing balance ÃWe are grateful to Carlos Alvarado, Quianru Song and Dante Poblete for superb research assistance and to Graham Bird, Jim Boughton, Russell Kincaid, Franziska Ohnsorge, Hui Tong, Dennis Quinn, and Felipe Zurita for valuable feedback. Two anonymous referees and the editor provided constructive comments. Saravia also acknowledges financial support from DIPUC No. 282150781. The views expressed here are those of the authors and should not be attributed to the IMF’s management or Board of Directors. © 2013 John Wiley & Sons Ltd 190 Ashoka Mody and Diego Saravia of payments stress.
    [Show full text]
  • Contributors, Asia Economic Policy Conference
    379 Contributors Guillermo Calvo, Professor Columbia University Guillermo Calvo is Professor of Economics, International and Public Affairs, and Director of the Program in Economic Policy Management at Columbia Uni- versity since January 2007, and Research Associate at the National Bureau of Economic Research. He is the former Chief Economist of the Inter-American Development Bank, 2001–06; President of the Latin American and Caribbean Economic Association, LACEA, 2000–01; and President of the International Economic Association, IEA, 2005–08. His honors include the King Juan Carlos Prize in Economics in 2000, LACEA 2006 Carlos Diaz-Alejandro Prize, Doctor Honoris Causa Di Tella University (Argentina), and Fellow of the Econometric Society, the American Academy of Arts and Sciences, and the National Acad- emy of Economic Sciences (Argentina). Mr. Calvo’s main area of expertise is macroeconomics of emerging market and transition economies. His recent work has dealt extensively with capital flows and balance-of-payments crises in emerging market economies. He has published several books and more than 100 articles in leading economic jour- nals, and delivered the 2005 Frank D. Graham Memorial Lecture at Princeton University and the 2012 Ohlin Lectures at Stockholm School of Economics. His latest book is Emerging Capital Markets in Turmoil: Bad Luck or Bad Pol­ icy? (MIT Press, 2005). Gerard Caprio, Jr., Professor Williams College Gerard Caprio, Jr., is the William Brough Professor of Economics and Chair of the Center for Development Economics at Williams College. Previously he was the Director for Policy in the World Bank’s Financial Sector Vice Presidency and head of the World Bank’s financial sector research group.
    [Show full text]
  • The Eurozone Crisis: Was the Euro Itself a Primary Cause?
    THE EUROZONE CRISIS: WAS THE EURO ITSELF A PRIMARY CAUSE? Compiled by Diarmuid O’Flynn #BallyheaSaysKnow i 1 Table of Contents 1 CHAPTER 1. INTRODUCTION .................................................................................................... 1 1.1 THE EUROZONE CRISIS – WAS THE EURO ITSELF A PRIMARY CAUSE? ............................. 1 1.1.1 CENTRE FOR EUROPEAN POLICY (cep) ...................................................................... 1 1.1.2 WALL STREET ............................................................................................................. 1 1.1.3 NEOLIBERALISM ........................................................................................................ 2 1.1.4 RATINGS AGENCIES, FINANCIAL MARKETS ............................................................... 2 2 CHAPTER 2. EXECUTIVE SUMMARY ......................................................................................... 4 2.1 THE EURO – WOLF IN SHEEP’S CLOTHING ........................................................................ 4 2.2 EXPERT OPINION ............................................................................................................... 4 2.3 DESIGN .............................................................................................................................. 4 2.4 EU RESPONSE TO THE CRISIS ............................................................................................ 5 2.5 BALLYHEA SAYS KNOW ....................................................................................................
    [Show full text]
  • 1 Managing Volatility and Crises Overview ______
    Managing Volatility and Crises: A Practitioner’s Guide Overview* Abstract This overview introduces and summarizes the findings of a practical volume on managing volatility and crises. The interest in these topics stems from the growing recognition that non-linearities tend to magnify the impact of economic volatility, leading to large output and economic growth costs, especially in poor countries. In these circumstances, good times do not offset the negative impact of bad times, leading to permanent negative effects. Such asymmetry is often reinforced by incomplete markets, sovereign risk, divisive politics, inefficient taxation, procyclical fiscal policy and weak financial market institutions – factors that are more problematic in developing countries. The same fundamental phenomena that make it difficult to cope with volatility also drive crises. Hence, the volume also focuses on the prevention and management of crises. It is a user-friendly compilation of empirical and policy results aimed at development policy practitioners divided into three modules: (i) the basics of volatility and its impact on growth and poverty; (ii) managing volatility along thematic lines, including financial sector and commodity price volatility; and (iii) management and prevention of macroeconomic crises, including a cross-country study, lessons from the debt defaults of the 1980s and 1990s and case studies on Argentina and Russia. Joshua Aizenman Brian Pinto Department of Economics, UCSC The World Bank 1156 High St. 1818 H Street, NW Santa Cruz, CA 95064 Washington, DC 20433 [email protected] [email protected] * This paper is the lead chapter of “Managing Volatility and Crises: A Practitioner’s Guide.” This volume is the outcome of a recent World Bank-financed study, and encompasses 11 chapters contributed by World Bank and academic economists.
    [Show full text]
  • Downloaded From
    Germany in an Interconnected World Economy EDITOR Ashoka Mody INTERNATIONAL MONETARY FUND ©International Monetary Fund. Not for Redistribution © 2013 International Monetary Fund Cataloging-in-Publication Data Joint Bank-Fund Library Germany in an interconnected world economy / editor, Ashoka Mody. – Washington, D.C. : International Monetary Fund, 2013. p. : ill. ; cm. Includes bibliographical references. 1. Germany – Economic conditions. 2. Economic development – Germany. 3. Germany – Foreign economic relations. 4. Financial crises – Germany. 5. Labor market – Germany. I.Mody, Ashoka. II. International Monetary Fund. HC286.G47 2013 Disclaimer: The views in this book are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its members. ISBN: 978-1-61635-424-4 (paper) ISBN: 978-1-47558-239-0 (ePub) ISBN: 978-1-47552-249-5 (Mobipocket) ISBN: 978-1-47551-671-5 (Web PDF) Please send orders to: International Monetary Fund, Publication Services P.O. Box 92780, Washington, D.C. 20090, U.S.A. Tel: (202) 623-7430 Fax: (202) 623-7201 E-mail: [email protected] Internet: www.imfbookstore.org ©International Monetary Fund. Not for Redistribution Contents Foreword v Christian Kastrop Preface ix Ashoka Mody 1 Tests of German Resilience .....................................................................1 Fabian Bornhorst and Ashoka Mody The Postwar Catch-Up ..........................................................................................................3
    [Show full text]