slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
GOOD GOVERNANCE PowerPoint Presentation
Download Presentation
GOOD GOVERNANCE

Loading in 2 Seconds...

play fullscreen
1 / 26

GOOD GOVERNANCE - PowerPoint PPT Presentation


  • 98 Views
  • Uploaded on

GOOD GOVERNANCE. A CONDITION FOR PRIVATE FINANCING OF INFRASTRUCTURE. Eduardo Rojas Inter American Development Bank. The context. Year. 1985. 2000. 2015. Rates. 1985-00. 2000-15. Population. 400.8. 519.1. 631.1. 1.7. 1.3. % Urban . 70. 75. 80. 2.8. 2.7.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'GOOD GOVERNANCE' - cheng


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

GOOD

GOVERNANCE

A CONDITION FOR PRIVATE

FINANCING OF INFRASTRUCTURE

Eduardo Rojas

Inter American Development Bank

slide3

Year

1985

2000

2015

Rates

1985-00

2000-15

Population

400.8

519.1

631.1

1.7

1.3

% Urban

70

75

80

2.8

2.7

Cities over 1 million

21

47

58

Population

69.5

153.9

213.1

Latin America is highly urbanized

slide4

1986-90

1991-95

1996-2000

2001-03

Latin America and the Caribbean

2.8

3.1

0.6

Asia

6.9

8.8

6.4

6.2

Central and Eastern Europe

0.6

-1.3

3.0

3.2

Middle East and North Africa

2.0

3.0

4.5

4.6

Sub Sahara Africa

2.7

1.2

3.4

3.2

Industrial Countries

3.7

2.2

3.3

1.5

Latin America is growing slowly

Average Real GDP Growth Rates

slide5

1986-90

1991-95

1996-2000

2001-03

Latin America and the Caribbean

20.7

20.5

21.1

19.3

East Asia & Pacific

32.7

36.6

32.3

31.6

Middle East & North Africa

23.0

23.6

20.9

22.5

Sub-Saharan Africa

18.2

17.3

17.7

17.5

Latin America in not investing enough

Investment as a Percent of GDP

slide6

1970s

1980s

1990s

Latin America and the Caribbean

48.4

50.8

52.2

Asia

40.2

40.4

41.2

Eastern Europe

28.3

29.3

32.8

OECD

28.3

29.3

32.8

Latin American growth is unequally distributed

Gini coefficient of distribution of household per capita income

slide8
National governments are devolving resources and responsibility to sub national entities in order to:
    • Provide infrastructures and services in sync with the needs of the local economy
    • Improve delivery of basic services essential for the poor
slide9

Focus

Level of Decentralization

(Sub national Public Expenditures as a percent of total)

More than 20%

Between 10 and 20%

Less than 10%

Intermediate Level

States or Provinces

Argentina (49.3)

Brazil (45.6)

Mexico (25.4)

Venezuela (19.6)

Peru (10.5)

Local Level

Municipal

Colombia (39.0)

Bolivia (26.7)

Uruguay (14.2)

Chile (13.6)

Honduras (12.3)

Guatemala (10.3)

Ecuador (7.5)

Trinidad and Tobago (7.2)

Paraguay (6.2)

El Salvador (6.0)

Nicaragua (5.2)

Panama (3.2)

Dominican Rep. (2.9)

Costa Rica (2.3)

Barbados (0.0)

Bahamas (0.0)

Latin America is decentralizing

slide12
Bank lending
    • Expand capacity:infrastructure and services
    • Improve fiscal management
    • Improve project management
slide15
Also needed
    • Set the right incentives to promote good sub national governance
    • Bank to support sector-wide reforms
slide16

Sub National

Development

Strategy

http://www.iadb.org/sds/soc/publication/publication_78_2440_e.htm

http://www.iadb.org/sds/soc/publication/publication_78_2829_e.htm

slide17
Key factors for good sub national governance
    • Structure of intergovernmental relations
    • System of democratic governance
    • Institutional capacity
    • Financing
slide18
Intergovernmental relations
    • Clearly defined responsibilities
    • Sufficient resources
    • Hard budget constrains
slide19
Governance
    • Citizen representation and oversight
    • Good and timely information
slide20
Institutional capacity
    • Organizational structure
    • Administrative systems
    • Human resource policies
slide21
Financing
    • Own sources of revenue
      • Fees for services
      • Local taxes
    • Transfers
    • Borrowing
slide22
Borrowing to be framed in a hard credit discipline imposed by
    • Intergovernmental relations
    • Democratic oversight
    • Market based risk evaluation
    • Good and timely information
slide23

The basis of a hard credit discipline

legal

framework

Intergovern-

mental

relations

hard

credit

framework

accounting

and budgeting

practices

financial

regulatory

framework

slide24
Agenda to support a hard credit culture
    • Focus on credit worthiness and self sustainability
    • Employ a graduation strategy with sub nationals
    • Promote the development of private intermediaries
slide25

Potential sources of financing

Systemic Framework

access

to bond

markets

Developed

access

commercial

bank

funding

direct

lending from

MDBs

High

dependence

on federal

funds

Underdeveloped

Creditworthiness

Low

slide26
Instruments
    • Technical assistance
    • Lending with sovereign guarantee
      • To sub national governments
      • Support local intermediaries
    • Credit enhancement activities
    • Direct lending to private sector enterprises