DOCSLIB.ORG

Budgeting and Policy Making

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Budgeting and Policy Making SIGMA Papers No. 8 Budgeting and Policy OECD Making https://dx.doi.org/10.1787/5kml6g6wccq0-en General Distribution OCDE/GD(96)110 BUDGETING AND POLICY MAKING SIGMA PAPERS: No. 8 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Paris 1996 40641 Ta. 15411 - 20.05.96 - 03.06.96 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format THE SIGMA PROGRAMME SIGMA -- Support for Improvement in Governance and Management in Central and Eastern European Countries -- is a joint initiative of the OECD Centre for Co-operation with the Economies in Transition and EC/PHARE, mainly financed by EC/PHARE. The OECD and several OECD Member countries also provide resources. SIGMA assists public administration reform efforts in Central and Eastern Europe. The OECD -- Organisation for Economic Co-operation and Development -- is an intergovernmental organisation of 27 democracies with advanced market economies. The Centre channels OECD advice and assistance over a wide range of economic issues to reforming countries in Central and Eastern Europe and the former Soviet Union. EC/PHARE provides grant financing to support its partner countries in Central and Eastern Europe to the stage where they are ready to assume the obligations of membership of the European Union. Established in 1992, SIGMA operates within the OECD's Public Management Service (PUMA). PUMA provides information and expert analysis on public management to policy-makers in OECD Member countries, and facilitates contact and exchange of experience amongst public sector managers. Through PUMA, SIGMA offers eleven countries a wealth of technical knowledge accumulated over many years of study and action. Participating governments and the SIGMA Secretariat collaborate in a flexible manner to establish work programmes designed to strengthen capacities for improving governance in line with each government's priorities and SIGMA's mission. The initiative relies on a network of experienced public administrators to provide counselling services and comparative analysis among different management systems. SIGMA also works closely with other international donors promoting administrative reform and democratic development. Throughout its work, SIGMA places a high priority on facilitating co-operation among governments. This includes providing logistical support to the formation of networks of public administration practitioners in Central and Eastern Europe, and between these practitioners and their counterparts in OECD Member countries. SIGMA's activities are divided into six areas: Reform of Public Institutions, Management of Policy-making, Expenditure Management, Management of the Public Service, Administrative Oversight, and Information Services. Copyright OECD, 1996 Applications for permission to reproduce or translate all or part of this material should be made to: Head of Publications Service, OECD, 2, rue André-Pascal, 75775 Paris Cedex 16, France. Views expressed in this publication do not represent official views of the Commission, OECD Member countries, or the central and eastern European countries participating in the Programme. 3 4 FOREWORD The purpose of this volume is to provide a reference book and a training manual for public administrators in the transitional economies, and in particular for officials with budgeting and policy-making responsibilities. The book is a follow-up to the Multicountry Seminar in Ljubljana (1-2 April 1996). It compiles the papers that were presented at the seminar in a format suitable for use as a reference book or training manual. For example, at the beginning of each part the reader will find an explanation of terms intended to facilitate understanding and consultation, along with brief summaries and notes comparing the systems and experiences presented in the articles. Similarly, after each article the reader is directed to ready sources of further information. Origins, themes and choices The relationships between budgeting and policy-making are not easy anywhere. Decision-makers in transitional economies face especially tough challenges because they are forced to harmonise the constraints and demands of fiscal and political decision-making at the very time when their support mechanisms and institutions are in a state of total flux. This fact gave rise to the project which has culminated in the seminar and in this book. Our strategy was adopted after extensive discussions with senior officials of the SIGMA countries. It consisted in scanning the experience of the OECD countries and selecting those examples and systems that were most successful and at the same time most immediately relevant to the structural changes still underway in the economies in transition. This dual criterion for the selection of papers and authors was quite naturally extended to all four major areas of the relationship between budgeting and policy-making. These areas correspond to the four parts of this volume: • a comprehensive look at the current state of theory, practice, solutions, trends and outstanding problems; • preparation of policies and budgets, including legislative ratification; • implementation, evaluation and control of policies and budgets; • a review of two particularly pressing issues: the utilisation of State-controlled enterprises and the administration of social security schemes. Acknowledgements and thanks SIGMA would like to extend its thanks to the contributing authors, whose particulars are given at the beginning of each chapter, as well as to the hosts of the Ljubljana seminar: the Slovene Government, and in particular the Office of European Affairs and its director, Mr. Benjamin Lukman, as well as the Ministry of Foreign Affairs. SIGMA would also like to express its gratitude to the participants in that event 5 and to the transitional economy experts who offered their suggestions and analysis at the preliminary meetings (see list on the following page). Mr. François Lacasse, professor at the Université du Québec in Hull and a former official of the OECD and the Canadian Government, oversaw the entire project and the realisation of this book. We thank him for it. It is our pleasure to highlight the contributions of Jim Adams (revision), Florence Lafay and the OECD Translation Division. At the SIGMA Secretariat, the project was kept on track by Linda Duboscq, Caroline Keogh, Joan Levins, Nathalie Lukasiewicz, Alison Millot and Thuy-Tien Vo, who deserve our deepest gratitude. Lawrence J. O'Toole Jean-Pierre Rostaing Senior Counsellor, Expenditure management Counsellor, Management of policy-making SIGMA SIGMA 6 PARTICIPANTS TO THE SEMINAR “BUDGETING AND POLICY MAKING: HARMONISATION AND COMPLEMENTARITY”, LJUBLJANA, 1 AND 2 APRIL 1996 ALBANIA HUNGARY Ms. Mimoza DHEMBI Ms. Agnes CSANADY Director of the Budget Department Director General a.i. Ministry of Finance Department of Budgeting and Economic Policy Office of the Prime Minister Mr. Armand SHARRA Senior Expert of the Department Dr. Zoltán BÖSZE of Public Administration Deputy Director of the State Budget Department Office of the Prime Minister Ministry of Finance BULGARIA POLAND Ms. Valentina GROZDANOVA Ms. Lidia WILK Head of Budget Policy Division Deputy Director Ministry of Finance Department of Financial Policy and Analyses Ministry of Finance Mr. Dobrin PINDJOUROV Deputy Head of General Budget Department Ms. Waclawa WOJTALA Ministry of Finance Advisor to the Deputy Prime Minister Economic Committee of the Council of Ministers CZECH REPUBLIC Mr. Jan KINST Deputy Director ROMANIA of the State Budget Department Mr. Mihai UNGHIANU Ministry of Finance Deputy Secretary General of the Government of Romania General Secretariat ESTONIA Piaita Victoriei 1 Mr. Tiit SAAT Deputy Chancellor Ministry of Finance SLOVENIA Ms. Hilda DOLENC-MIHEVC Mr. Imre SIIL Under-Secretary of State Director of the State Chancellery Office of the Prime Minister State Chancellery Mr. Andrej ENGELMAN State Secretary Ministry of Finance Ms. Tatjana SVAJGER Head of the Office for Supervision of Foreign Technical Assistance & PHARE Monitoring Unit Ministry of Finance 7 OTHER EXPERTS WHO TOOK PART IN THE PREPARATION OF THE SEMINAR Mr. Lazar COMANESCU Director for the European Union Ministry of Foreign Affairs Romania Dr. Jaroslaw PIETRAS Director Economics Unit of European Integration Poland Mr. Dimitar RADEV First Deputy Minister Ministry of Finance Bulgaria Dr. Dusan SOLTES Director Department of European Integration Slovak Republic Mr. Pavel STEPANEK Director Financial Policy Dept. Ministry of Finance Czech Republic 8 USER'S GUIDE To make it easier to use this volume as a reference book and a training manual, the following features have been added to the papers of the experts: • To know more... At the end of each article, the reader will find a box citing the most immediately relevant reference materials, along with instructions on how to obtain them readily. Most immediate complements for the entire book are: Profiles of Centres of Governments (to be published by PUMA/OECD) Budgeting for Results: Perspectives on Public Expenditure Management (1995) OECD, 2 rue André-Pascal, 75775 Paris cedex 16, France. Tel: (33-1) 45 24 82 00/TELEX 640048/Telefax: (33-1) 45 24 85 00. • Presentation of the main points of each part At the beginning of Parts II, III and IV, a presentation introduces the reader to the main similarities and differences between the systems presented in the articles of that Part, placing the emphasis on issues of a more technical nature. The Overview
Load more

Recommended publications
  • Report on Scottish Government Budget 2021-22 Published in Scotland by the Scottish Parliamentary Corporate Body
    Published 23 February 2021 SP Paper 954 2nd Report, 2021 (Session 5) Finance and Constitution Committee Comataidh Ionmhais is Bun-reachd Report on Scottish Government Budget 2021-22 Published in Scotland by the Scottish Parliamentary Corporate Body. All documents are available on the Scottish For information on the Scottish Parliament contact Parliament website at: Public Information on: http://www.parliament.scot/abouttheparliament/ Telephone: 0131 348 5000 91279.aspx Textphone: 0800 092 7100 Email: [email protected] © Parliamentary copyright. Scottish Parliament Corporate Body The Scottish Parliament's copyright policy can be found on the website — www.parliament.scot Finance and Constitution Committee Report on Scottish Government Budget 2021-22 , 2nd Report, 2021 (Session 5) Contents Introduction ____________________________________________________________1 UK Economic and Fiscal Outlook __________________________________________2 Future trading relationship with the EU ______________________________________2 Borrowing_____________________________________________________________3 Scotland’s Economic and Fiscal Outlook ____________________________________5 Scotland-specific economic shock__________________________________________6 Future trading relationship with the EU ______________________________________7 Impact of Covid-19 on the Scottish Budget __________________________________9 Budget 2020-21 In-Year Revisions _________________________________________9 COVID-19 Funding in Budget 2021-22 _____________________________________10
    [Show full text]
  • The Principles of Budgetary Governance Public Governance
    @OECDgov PUBLIC GOVERNANCE AND TERRITORIAL DEVELOPMENT OECD, Paris www.oecd.org/gov DRAFT RECOMMENDATION OF THE OECD COUNCIL ON THE PRINCIPLES OF OECD Paris BUDGETARY GOVERNANCE 2, rue André-Pascal, 75775 Paris Cedex 16 Tel.: +33 (0) 1 45 24 82 00 OECD PRINCIPLES OF BUDGETARY GOVERNANCE OECD Senior Budget Officials July 2014 Introductory note The objective of these Principles is to draw together the lessons of a decade and more of work by the OECD Working Party of Senior Budget Officials (SBO) and its associated Networks, along with the contributions and insights from other areas of the OECD and of the international budgeting community more generally. The Principles provide a concise overview of good practices across the full spectrum of budget activity, taking account in particular of the lessons of the recent economic crisis, and aim to give practical guidance for designing, implementing and improving budget systems to meet the challenges of the future. The overall intention is to provide a useful reference tool for policy-makers and practitioners around the world, and help ensure that public resources are planned, managed and used effectively to make a positive impact on citizens’ lives. For further information, please visit: http://www.oecd.org/governance/budgeting/ OECD PRINCIPLES OF BUDGETARY GOVERNANCE Introduction: The fundamental national role of the budget and the budgeting process The budget is a central policy document of government, showing how it will prioritise and achieve its annual and multi-annual objectives. Apart from financing new and existing programmes, the budget is the primary instrument for implementing fiscal policy, and thereby influencing the economy as a whole.
    [Show full text]
  • FY2022 Proposed Budget Fiscal Policy and Position Control
    FY2022 Annual Budget Fiscal and Budgetary Policy Adopted: September 28, 2021 I. PURPOSE The City of Georgetown is committed to financial management through integrity, prudent stewardship, planning, accountability, transparency and communication. The broad purpose of the Fiscal and Budgetary Policies is to enable the City and its related component units, including the Georgetown Transportation Enhancement Corporation (GTEC) and the Georgetown Economic Development Corporation (GEDCO), to achieve and maintain a long-term stable and positive financial condition, and provide guidelines for the day-to-day planning and operations of the City’s financial affairs. Policy scope generally spans areas of accounting, operational and capital budgeting, revenue and expenditure management, financial reporting, internal controls, investment and asset management, debt management and forecasting. This is done in order to: A. Demonstrate to the residents of Georgetown, the investment community, and the bond rating agencies that the City is committed to a strong fiscal operation; B. Provide precedents for future policy-makers and financial managers on common financial goals and strategies; C. Fairly present and fully disclose the financial position of the City in conformity to generally accepted accounting principles (GAAP); and D. Demonstrate compliance with finance-related legal and contractual issues in accordance with the Texas Local Government Code and other legal mandates. These policies will be reviewed and updated annually as part of the budget preparation process. II. FUND STRUCTURE AND BASIS OF BUDGETING The budgeted funds for the City of Georgetown include: Governmental Funds: General Fund which accounts for all financial resources except those required to be accounted for in another fund, and include basic governmental services, such as Street Maintenance, Planning and Development, Police, Fire, Parks, as well as Solid Waste Management.
    [Show full text]
  • Defence Budget and Military Spending on War Against Terror and Insecurity in Nigeria: Implications for State Politics, Economy, and National Security
    International Journal of Advanced Academic Research (Social and Management Sciences) | ISSN: 2488-9849 Vol. 6, Issue 7 (July, 2020) | www.ijaar.org Journal DOI: 10.46654/ij.24889849 Article DOI: 10.46654/ij.24889849.s6713 DEFENCE BUDGET AND MILITARY SPENDING ON WAR AGAINST TERROR AND INSECURITY IN NIGERIA: IMPLICATIONS FOR STATE POLITICS, ECONOMY, AND NATIONAL SECURITY Dr. Temitope Francis Abiodun Institute for Peace and Strategic Studies, Faculty of Multidisciplinary Studies, University of Ibadan, Ibadan, Nigeria. E-mail: [email protected] Dr. Adepoju Adeoba Asaolu Department of Finance, Faculty of Management Sciences, University of Benin, Benin-City, Nigeria. Anthony Ifeanyichukwu Ndubuisi M.A. Student, Institute for Peace and Strategic Studies, Faculty of Multidisciplinary Studies, University of Ibadan, Ibadan, Nigeria. Abstract Sound financial management of a state’s security sector remains the key to efficient and effective security forces capable of responding to the citizens’ legitimate security. The huge budgetary allocations for defence or military in Nigeria annually remain higher than budgets of all other West African states’ defence/military operations combined together in all ramifications. But one would be dismayed that with the usual bogus defence budgets in Nigeria, the attendant effects on her political and socio-economic stability coupled with peace and security still fall far below ebb. The study therefore examines the reasons insecurity still persists in Nigeria despite huge budgetary allocations to defence and military spending on war against terror and insecurity in the last one decade, and implications for state politics, economy and national security. The study employed a progressive theory of public expenditure while it relies on both primary and secondary sources of data.
    [Show full text]
  • An SVAR Analysis of Stabilization Policies in Monetary Union
    EUROPEAN UNIVERSITY INSTITUTE DEPARTMENT OF ECONOMICS EUI Working Paper ECO No. 2004 /22 Monetary and Budgetary Policy Interaction: An SVAR Analysis of Stabilization Policies in Monetary Union PETER CLAEYS BADIA FIESOLANA, SAN DOMENICO (FI) All rights reserved. No part of this paper may be reproduced in any form Without permission of the author(s). ©2004 Peter Claeys Published in Italy in June 2004 European University Institute Badia Fiesolana I-50016 San Domenico (FI) Italy Monetary and budgetary policy interaction: an SVAR analysis of stabilisation policies in monetary union Peter Claeys∗ European University Institute† Janurary 31st , 2 004 Abstract This paper examines the interaction between monetary and budgetary policy. A comparison of the dynamic responses in different exchange rate regimes offers an assessment of the monetary union case. The analysis proceeds on an SVAR-common trends model. In its current specifica- tion, we can only infer responses to the budgetary policy shock. Its identification is obtained by imposing a (long term) solvency condition on government accounts, exploiting automatic stabilisation responses of government revenues, and the imposition of the Fisher relationship. Two main conclusions emerge. Budgetary policy shocks indirectly lead to monetary tightening. Such effects are significant in countries with flexible exchange rate regimes only. Second, policy regime shifts are important. 1INTRODUCTION With the creation of EMU, a new macroeconomic regime has been installed. The prime aim of the ECB is to maintain price stability and - only in a second line - to support general economic objectives. A multitude of national budgetary authorities is bound by the Stability and Growth Pact (SGP). The rules of the Pact comprise the use of automatic stabilisers around structurally sound fiscal positions, close to balance or in surplus in the medium term.
    [Show full text]
  • Cesifo Working Paper No. 3038 Category 1: Public Finance April 2010
    Aggressive Oil Extraction and Precautionary Saving: Coping with Volatility Frederick van der Ploeg CESIFO WORKING PAPER NO. 3038 CATEGORY 1: PUBLIC FINANCE APRIL 2010 An electronic version of the paper may be downloaded • from the SSRN website: www.SSRN.com • from the RePEc website: www.RePEc.org • from the CESifo website: www.CESifo-group.org/wpT T CESifo Working Paper No. 3038 Aggressive Oil Extraction and Precautionary Saving: Coping with Volatility Abstract The effects of stochastic oil demand on optimal oil extraction paths and tax, spending and government debt policies are analyzed when the oil demand schedule is linear and preferences quadratic. Without prudence, optimal oil extraction is governed by the Hotelling rule and optimal budgetary policies by the tax and consumption smoothing principle. Volatile oil demand brings forward oil extraction and induces a bigger government surplus. With prudence, the government depletes oil reserves even more aggressively and engages in additional precautionary saving financed by postponing spending and bringing taxes forward, especially if it has substantial monopoly power on the oil market, gives high priority to the public spending target, is very prudent, and future oil demand has high variance. Uncertain economic prospects induce even higher precautionary saving and, if non‐oil revenue shocks and oil revenue shocks are positively correlated, even more aggressive oil extraction. In contrast, prudent governments deliberately underestimate oil reserves which induce less aggressive oil depletion and less government saving, but less so if uncertainty about reserves and oil demand are positively correlated. JEL-Code: D81, E62, H63, Q32. Keywords: Hotelling rule, tax smoothing, prudence, vigorous oil extraction, precautionary saving, taxation and under-spending, oil price volatility, uncertain economic prospects and oil reserves.
    [Show full text]
  • Applying Pragmatism to Public Budgeting and Financial Management
    Applying Pragmatism to Public Budgeting and Financial Management John R. Bartle David Scott Diamond Professor of Public Affairs Director, School of Public Administration University of Nebraska - Omaha Omaha, Nebraska [email protected] Patricia Shields, Professor Department of Political Science Texas State University San Marcos, Texas 78666 [email protected] Association for Budgeting and Financial Management conference October 24, 2008 Chicago, Illinois Applying Pragmatism to Public Budgeting and Financial Management Abstract Pragmatism is a philosophy that emphasizes learning through action and building a knowledge base from experience and reflection. It is a potentially compelling approach for public budgeting and financial management. The largely normative theories of public finance, public financial management and public budgeting are examined and critiqued. We do not seek to abandon these valuable contributions to practice, however they often fail to describe and explain the practices of the field. In some cases, the norms prescribed may not be shared by government officials and citizens, and thus the management or policy prescription become unhelpful. We believe theory should guide practice, but theory must also be informed by practice. We seek to establish a better basis to understand the structure and evolution of government budgeting and finance, and to help practitioners face difficult situations that call for workable solutions. The classical pragmatism of Charles Sanders Peirce, John Dewey, William James, Oliver Wendell Holmes, Jr. and Jane Addams is presented and applied to the theories of public finance, budgeting and financial management. Pragmatism focuses on inquiry and the problematic situation. Theories are viewed as tools to resolve the problematic situation. And, just as there are often many tools used to approach a problematic situation, there are many theories that, like tools or maps, are judged by their usefulness.
    [Show full text]
  • The Public Budget
    UNRISD UNITED NATIONS RESEARCH INSTITUTE FOR SOCIAL DEVELOPMENT The Budgeting Process and the Implications on Social Policies and Poverty Reduction: Alternatives to Traditional Models Cristina Bloj National University of Rosario, Argentina background paper commissioned for the UNRISD Flagship Report on Poverty July 2009 ▪ Geneva 1 The United Nations Research Institute for Social Development (UNRISD) is an autonomous agency engaging in multidisciplinary research on the social dimensions of contemporary development issues. Its work is guided by the conviction that, for effective development policies to be formulated, an understanding of the social and political context is crucial. The Institute attempts to provide governments, development agencies, grassroots organizations and scholars with a better understanding of how development policies, and processes of economic and social change, affect different social groups. Working through an extensive network of national research centres, UNRISD aims to promote original research and strengthen research capacity in developing countries. Research programmes include: Civil Society and Social Movements; Democracy, Governance and Well-Being; Gender and Development; Identities, Conflict and Cohesion; Markets, Business and Regulation; and Social Policy and Development. A list of the Institute’s free and priced publications can be obtained by contacting the Reference Centre. UNRISD, Palais des Nations 1211 Geneva 10, Switzerland Tel: (41 22) 9173020 Fax: (41 22) 9170650 E-mail: [email protected] Web: http://www.unrisd.org Copyright © United Nations Research Institute for Social Development (UNRISD). This is not a formal UNRISD publication. The responsibility for opinions expressed in signed studies rests solely with their author(s), and availability on the UNRISD Web site (www.unrisd.org) does not constitute an endorsement by UNRISD of the opinions expressed in them.
    [Show full text]
  • Strengthening Local Government Budgeting and Accountability
    WPS4767 POLICY RESEA R CH WO R KING PA P E R 4767 Public Disclosure Authorized Strengthening Local Government Budgeting and Accountability Public Disclosure Authorized Michael Schaeffer Serdar Yilmaz Public Disclosure Authorized The World Bank Public Disclosure Authorized Sustainable Development Network Social Development Department November 2008 POLICY RESEA R CH WO R KING PA P E R 4767 Abstract In many developing and middle-income countries, transparency is not an end itself, but rather it represents decentralization reforms are promoting changes in the means to support better decision-making on national governance structures that are reshaping the relationship and local budgeting. Community based schemes for between local governments and citizens. The success of enhancing local government accountability need to these decentralization reforms depends on the existence combine legal, political, and administrative mechanisms of sound public financial systems both at the central and with proactive community involvement. Of particular local levels. This paper focuses on the role of budgeting importance are the legal and budgetary instruments that as a critical tool in reform efforts, highlighting problems require input from local community members on certain that might impede successful local government budget local government decisions and instruments that increase development and implementation. The attainment accessibility for the press or the general public at large to of effective local government accountability and information on government activities. This paper—a product of the Social Development Department, Sustainable Development Network—is part of a larger effort in the department to study local governance systems and decentralization in the client countries. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org.
    [Show full text]
  • The Budget Surplus Objective
    The Budget Surplus Objective An example of how economics is broken Discussion paper David Richardson March 2020 ABOUT THE AUSTRALIA INSTITUTE The Australia Institute is an independent public policy think tank based in Canberra. It is funded by donations from philanthropic trusts and individuals and commissioned research. We barrack for ideas, not political parties or candidates. Since its launch in 1994, the Institute has carried out highly influential research on a broad range of economic, social and environmental issues. OUR PHILOSOPHY As we begin the 21st century, new dilemmas confront our society and our planet. Unprecedented levels of consumption co-exist with extreme poverty. Through new technology we are more connected than we have ever been, yet civic engagement is declining. Environmental neglect continues despite heightened ecological awareness. A better balance is urgently needed. The Australia Institute’s directors, staff and supporters represent a broad range of views and priorities. What unites us is a belief that through a combination of research and creativity we can promote new solutions and ways of thinking. OUR PURPOSE – ‘RESEARCH THAT MATTERS’ The Institute publishes research that contributes to a more just, sustainable and peaceful society. Our goal is to gather, interpret and communicate evidence in order to both diagnose the problems we face and propose new solutions to tackle them. The Institute is wholly independent and not affiliated with any other organisation. Donations to its Research Fund are tax deductible for the donor. Anyone wishing to donate can do so via the website at https://www.tai.org.au or by calling the Institute on 02 6130 0530.
    [Show full text]
  • Decremental Budgeting in An
    DECREMENTAL BUDGETING IN AN INCREMENTAL ERA: A STUDY OF THE CENTRAL-PROVINCIAL BUDGETARY RELATIONSHIP IN THE PEOPLE'S REPUBLIC OF CHINA AFTER 1978 by BAI YAN, B.A., M.P.A. A DISSERTATION IN POLITICAL SCIENCE Submitted to the Graduate Faculty of Texas Tech University in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY Approved May, 1995 Sol A^O^^' T5 ^ ACKNOWLEDGEMENTS })0 lSh-:> ^\. I am greatly indebted to Professor Mark Sorama whose genuine efforts, direction, encouragement, and sincerity made this study a reality. My gratitude goes to the other members of the committee—Professor Siegrun Fox Freyss, Professor Aman Khan, and Professor Aie Rie Lee—for their thoughtful suggestions and criticisms. All my committee members have been generously supportive in providing me wit: encouragement and specific comments through my writing. I am thankful to the Department of Political Science for its support of my entire graduate work. I would like to dedicate this study to my wife Anling Lai and my son Bai Ou, whose faithful support and understanding have been indescribable. 11 TABLE OF CONTENTS ACKNOWLEDGEMENTS ii ABSTRACT vi LIST OF TABLES ix CHAPTER I. INTRODUCTION 1 General Introduction 1 Organization of the Study 10 II. LITERATURE REVIEW, RECONCEPTULIZATION, AND METHOD 13 General Survey 13 The Caiden and Wildavsky Model of Poverty-Uncertainty 18 The Development Theories 25 Dichotomous Mode of Thinking 29 From Single Factor to the Context 31 The Caiden and Wildavsky Model Reconceptualized 32 Seeking A Common Point of Departure. ... 32 Uncertainty Reduction and Avoidance. ... 35 State Capacity 39 Method 42 III.
    [Show full text]
  • Chapter 2. the BUDGET and ITS COVERAGE Government Policy Objectives Include Quantitative Aims, Such As Raising the Literacy Rate
    Chapter 2. THE BUDGET AND ITS COVERAGE Government policy objectives include quantitative aims, such as raising the literacy rate by a specified amount, or qualitative goals, such as improving market competitiveness (see chapter 15 for a discussion of performance monitoring and budget efficiency indicators). They can be achieved through a variety of instruments: direct government spending, indirect spending (tax expenditures, contingent liabilities, loans, etc.), tax policy, regulations, and direct commands. Government policy goals can also be achieved through financial transactions undertaken by the Central Bank or the state-owned banking sector (“quasi-fiscal expenditures”) or through state guarantees and insurance. However, direct government spending is the most important instrument, and the government budget is the financial mirror of most government policies. A. BASIC DEFINITIONS 1. What is the “budget”? The word “budget” comes from budjet, a Middle English word for the king's bag containing the money necessary for public expenditure.1 Budgets evolved in two directions. At first, Parliaments fought to take control of the budget and make governments accountable for the use of resources. In democratic societies, for instance, approval of the budget (the “power of the purse”) is the main form of parliamentary control of the executive. The budget authorizes to the executive to spend and collect revenues. In later years, the scope of government activities expanded considerably, and the role of the government budget became more complex. Today, government expenditure is aimed at a variety of objectives, including economic development, and social goals, or redistribution objectives. Hence, governments need sound fiscal policies, i.e., policies concerning government revenues, expenditures, and borrowing to achieve macroeconomic stability and other government objectives.
    [Show full text]