Subnational Capital Markets in Developing Countries : From Theory to Practice
In developing countries the twin tasks of building more dispersed and democratic governments and opening economies to freer markets and greater private ownership have been attempted in tandem-and have proved a difficult undertaking. A reduction in...
| Main Authors: | , , , |
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| Format: | Publication |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank and Oxford University Press
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/01/2881756/subnational-capital-markets-developing-countries-theory-practice http://hdl.handle.net/10986/15044 |
| Summary: | In developing countries the twin tasks
of building more dispersed and democratic governments and
opening economies to freer markets and greater private
ownership have been attempted in tandem-and have proved a
difficult undertaking. A reduction in barriers to the
movement of capital and goods has been a nearly universal
objective. However, implementation of the required reforms
has meant tough competition for domestic industries and
increasing constraints on the fiscal and monetary policies
of national governments. In the face of economic slowdowns
and unstable financial markets, many emerging and developing
economies have found privatization and the opening up of
their economies to be painful and unpopular. The steep price
and uncertain benefits of joining global markets have their
critics. Subnational governments, for their part, are being
required to do more things, to do them more efficiently, and
to be more self-reliant in raising resources. At the same
time devolution and hard-pressed budgets have constrained
the ability of central governments to provide for the needs
of subnational governments. After years of neglect and with
expectations rising, the needs for infrastructure are
particularly daunting. The enormous funding requirements
cannot be met either practically or equitably without
long-term investment. International lending and grant-giving
institutions, another traditional source of funds, are also
limited in their resources and restricted by rules and
customary practice to dealing only through sovereign governments. |
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