Local Governments and the Financial Crisis : An Analysis
The financial and economic crisis that started in the United States has finally impacted all urban communities and investment financing systems around the world. Local governments grappling with the crisis face a number of constraints which, though...
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| Format: | City Development Strategy (CDS) |
| Language: | English en_US |
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Cities Alliance, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2009/12/18227250/local-governments-financial-crisis-analysis http://hdl.handle.net/10986/15782 |
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okr-10986-15782 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCESS TO HOMEOWNERSHIP ADVISORY SERVICES ASSETS AUTONOMOUS REGIONS BAD BANK BAILOUT BALANCED BUDGETS BANK LOANS BANKING INSTITUTIONS BANKING SYSTEM BANKRUPTCY BID BOND BOND INSURANCE BOND ISSUE BOND ISSUES BORROWER BORROWING BORROWINGS BUDGET SURPLUSES CAPITAL INVESTMENT CAPTIVE MARKET CITIES COMMERCIAL TRANSACTIONS CONFLICTS OF INTEREST CONSUMER CREDIT CREDIT ENHANCEMENT CREDIT LINE CREDIT-RATING AGENCIES DEBT DEBT RESTRUCTURING DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT BANKS DONOR SUPPORT DOWN PAYMENT DOWN PAYMENTS DURABLE DURABLES ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC CRISIS EMERGING ECONOMIES EMPLOYMENT SITUATION ENVIRONMENTAL PROTECTION EQUITY LOAN EXCLUSION EXPENDITURE EXPENDITURES EXTERNALITIES FAMILIES FEDERAL AGENCY FEDERAL HOUSING FINANCIAL CRISIS FINANCIAL DIFFICULTY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKET FINANCIAL PRODUCTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TOOLS FIXED RATE FIXED RATE BONDS FOREIGN CURRENCY FOREIGN INVESTMENT GOVERNMENT ACCOUNTS GOVERNMENT BUDGETS GOVERNMENT INVESTMENTS GOVERNMENT LEGISLATION GOVERNMENT POLICIES GREATER ACCESS GUARANTEE FUND HEDGE FUNDS HOME EQUITY HOMEOWNERS HOMEOWNERSHIP HOUSEHOLDS HOUSING POLICY INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE INTERNATIONAL MARKETS INVESTMENT BANK INVESTMENT CORPORATIONS INVESTMENT FINANCING INVESTMENT FUNDS LAND DEVELOPMENT LAND USE LAND VALUES LEGAL PROVISIONS LINE OF CREDIT LINES OF CREDIT LIQUIDITY LOAN LOCAL CAPACITY LOCAL CURRENCY LOCAL ECONOMY LOCAL GOVERNMENT LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENTS LOCAL SAVINGS MIGRATION MORTGAGE MORTGAGE MARKET MORTGAGES MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND INSURANCE MUNICIPAL BOND ISSUES MUNICIPAL BOND MARKET MUNICIPAL BONDS MUNICIPAL DEVELOPMENT MUNICIPAL INVESTMENTS MUNICIPALITIES OLIGOPOLY OPERATING COSTS OUTSTANDING BALANCES OUTSTANDING DEBT PENSION PENSION FUNDS POST-CRISIS PERIOD PRIVATE BANKS PRIVATE SECTOR PROJECT FINANCE PROMOTION OF INVESTMENTS PROPERTY LAW PROPERTY TAXES PROVISION OF LOANS PROVISIONING PUBLIC BUDGET PUBLIC FINANCE PUBLIC FINANCES PUBLIC HOUSING PUBLIC INFRASTRUCTURE PUBLIC SERVICES PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REAL ESTATE RECESSION RECESSIONS REMITTANCES RESERVES RETURN RETURNS REVENUE BONDS REVOLVING FUNDS SHAREHOLDERS SOCIAL SERVICES SOCIAL WELFARE STATE SUPPORT STOCK EXCHANGE SUPPLY OF CREDIT TAX TAX EXEMPTION TAX EXEMPTIONS TAX SYSTEM TAXATION TELECOMMUNICATIONS TRADING TREASURY UNEMPLOYMENT UNION URBAN DEVELOPMENT URBAN INFRASTRUCTURE URBANIZATION VARIABLE RATE |
| spellingShingle |
ACCESS TO HOMEOWNERSHIP ADVISORY SERVICES ASSETS AUTONOMOUS REGIONS BAD BANK BAILOUT BALANCED BUDGETS BANK LOANS BANKING INSTITUTIONS BANKING SYSTEM BANKRUPTCY BID BOND BOND INSURANCE BOND ISSUE BOND ISSUES BORROWER BORROWING BORROWINGS BUDGET SURPLUSES CAPITAL INVESTMENT CAPTIVE MARKET CITIES COMMERCIAL TRANSACTIONS CONFLICTS OF INTEREST CONSUMER CREDIT CREDIT ENHANCEMENT CREDIT LINE CREDIT-RATING AGENCIES DEBT DEBT RESTRUCTURING DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT BANKS DONOR SUPPORT DOWN PAYMENT DOWN PAYMENTS DURABLE DURABLES ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC CRISIS EMERGING ECONOMIES EMPLOYMENT SITUATION ENVIRONMENTAL PROTECTION EQUITY LOAN EXCLUSION EXPENDITURE EXPENDITURES EXTERNALITIES FAMILIES FEDERAL AGENCY FEDERAL HOUSING FINANCIAL CRISIS FINANCIAL DIFFICULTY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKET FINANCIAL PRODUCTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TOOLS FIXED RATE FIXED RATE BONDS FOREIGN CURRENCY FOREIGN INVESTMENT GOVERNMENT ACCOUNTS GOVERNMENT BUDGETS GOVERNMENT INVESTMENTS GOVERNMENT LEGISLATION GOVERNMENT POLICIES GREATER ACCESS GUARANTEE FUND HEDGE FUNDS HOME EQUITY HOMEOWNERS HOMEOWNERSHIP HOUSEHOLDS HOUSING POLICY INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE INTERNATIONAL MARKETS INVESTMENT BANK INVESTMENT CORPORATIONS INVESTMENT FINANCING INVESTMENT FUNDS LAND DEVELOPMENT LAND USE LAND VALUES LEGAL PROVISIONS LINE OF CREDIT LINES OF CREDIT LIQUIDITY LOAN LOCAL CAPACITY LOCAL CURRENCY LOCAL ECONOMY LOCAL GOVERNMENT LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENTS LOCAL SAVINGS MIGRATION MORTGAGE MORTGAGE MARKET MORTGAGES MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND INSURANCE MUNICIPAL BOND ISSUES MUNICIPAL BOND MARKET MUNICIPAL BONDS MUNICIPAL DEVELOPMENT MUNICIPAL INVESTMENTS MUNICIPALITIES OLIGOPOLY OPERATING COSTS OUTSTANDING BALANCES OUTSTANDING DEBT PENSION PENSION FUNDS POST-CRISIS PERIOD PRIVATE BANKS PRIVATE SECTOR PROJECT FINANCE PROMOTION OF INVESTMENTS PROPERTY LAW PROPERTY TAXES PROVISION OF LOANS PROVISIONING PUBLIC BUDGET PUBLIC FINANCE PUBLIC FINANCES PUBLIC HOUSING PUBLIC INFRASTRUCTURE PUBLIC SERVICES PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REAL ESTATE RECESSION RECESSIONS REMITTANCES RESERVES RETURN RETURNS REVENUE BONDS REVOLVING FUNDS SHAREHOLDERS SOCIAL SERVICES SOCIAL WELFARE STATE SUPPORT STOCK EXCHANGE SUPPLY OF CREDIT TAX TAX EXEMPTION TAX EXEMPTIONS TAX SYSTEM TAXATION TELECOMMUNICATIONS TRADING TREASURY UNEMPLOYMENT UNION URBAN DEVELOPMENT URBAN INFRASTRUCTURE URBANIZATION VARIABLE RATE Paulais, Thierry Local Governments and the Financial Crisis : An Analysis |
| description |
The financial and economic crisis that
started in the United States has finally impacted all urban
communities and investment financing systems around the
world. Local governments grappling with the crisis face a
number of constraints which, though disparate in nature,
have a cumulative effect. This phenomenon has created a
number of extremely difficult situations. In general terms,
the consequences of the crisis can be felt on four levels:
1) revenue-either generated by local governments or derived
from State transfers-which may be subject to sharp declines;
2) expenditures, which are rising because of the slowdown in
economic activity and the corresponding increases in
unemployment and social welfare needs; 3) financing
capacities, which are shrinking owing to the difficulty in
obtaining loans and the increase in the cost of money; and
4) foreign investment, which has declined; operations
underway, which have been put on hold in many instances; and
projects, which have either been cancelled or delayed. The
two major financing systems bond issues and banks whether
specialized or not, have been heavily impacted. Governments
have adopted different measures depending on political and
institutional environment. The situation differs greatly
from one country to another. In some institutional contexts,
local governments are relatively sheltered while in others,
they are exposed. In terms of assets, local governments that
can invest their funds in the market have been directly
affected by losses in capital. The deterioration in local
government accounts is often one of the factors constraining
the ability of these governments to borrow. |
| format |
Economic & Sector Work :: City Development Strategy (CDS) |
| author |
Paulais, Thierry |
| author_facet |
Paulais, Thierry |
| author_sort |
Paulais, Thierry |
| title |
Local Governments and the Financial Crisis : An Analysis |
| title_short |
Local Governments and the Financial Crisis : An Analysis |
| title_full |
Local Governments and the Financial Crisis : An Analysis |
| title_fullStr |
Local Governments and the Financial Crisis : An Analysis |
| title_full_unstemmed |
Local Governments and the Financial Crisis : An Analysis |
| title_sort |
local governments and the financial crisis : an analysis |
| publisher |
Cities Alliance, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2009/12/18227250/local-governments-financial-crisis-analysis http://hdl.handle.net/10986/15782 |
| _version_ |
1764431162780942336 |
| spelling |
okr-10986-157822021-04-23T14:03:22Z Local Governments and the Financial Crisis : An Analysis Paulais, Thierry ACCESS TO HOMEOWNERSHIP ADVISORY SERVICES ASSETS AUTONOMOUS REGIONS BAD BANK BAILOUT BALANCED BUDGETS BANK LOANS BANKING INSTITUTIONS BANKING SYSTEM BANKRUPTCY BID BOND BOND INSURANCE BOND ISSUE BOND ISSUES BORROWER BORROWING BORROWINGS BUDGET SURPLUSES CAPITAL INVESTMENT CAPTIVE MARKET CITIES COMMERCIAL TRANSACTIONS CONFLICTS OF INTEREST CONSUMER CREDIT CREDIT ENHANCEMENT CREDIT LINE CREDIT-RATING AGENCIES DEBT DEBT RESTRUCTURING DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT BANKS DONOR SUPPORT DOWN PAYMENT DOWN PAYMENTS DURABLE DURABLES ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC CRISIS EMERGING ECONOMIES EMPLOYMENT SITUATION ENVIRONMENTAL PROTECTION EQUITY LOAN EXCLUSION EXPENDITURE EXPENDITURES EXTERNALITIES FAMILIES FEDERAL AGENCY FEDERAL HOUSING FINANCIAL CRISIS FINANCIAL DIFFICULTY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKET FINANCIAL PRODUCTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL TOOLS FIXED RATE FIXED RATE BONDS FOREIGN CURRENCY FOREIGN INVESTMENT GOVERNMENT ACCOUNTS GOVERNMENT BUDGETS GOVERNMENT INVESTMENTS GOVERNMENT LEGISLATION GOVERNMENT POLICIES GREATER ACCESS GUARANTEE FUND HEDGE FUNDS HOME EQUITY HOMEOWNERS HOMEOWNERSHIP HOUSEHOLDS HOUSING POLICY INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE INTERNATIONAL MARKETS INVESTMENT BANK INVESTMENT CORPORATIONS INVESTMENT FINANCING INVESTMENT FUNDS LAND DEVELOPMENT LAND USE LAND VALUES LEGAL PROVISIONS LINE OF CREDIT LINES OF CREDIT LIQUIDITY LOAN LOCAL CAPACITY LOCAL CURRENCY LOCAL ECONOMY LOCAL GOVERNMENT LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENTS LOCAL SAVINGS MIGRATION MORTGAGE MORTGAGE MARKET MORTGAGES MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND INSURANCE MUNICIPAL BOND ISSUES MUNICIPAL BOND MARKET MUNICIPAL BONDS MUNICIPAL DEVELOPMENT MUNICIPAL INVESTMENTS MUNICIPALITIES OLIGOPOLY OPERATING COSTS OUTSTANDING BALANCES OUTSTANDING DEBT PENSION PENSION FUNDS POST-CRISIS PERIOD PRIVATE BANKS PRIVATE SECTOR PROJECT FINANCE PROMOTION OF INVESTMENTS PROPERTY LAW PROPERTY TAXES PROVISION OF LOANS PROVISIONING PUBLIC BUDGET PUBLIC FINANCE PUBLIC FINANCES PUBLIC HOUSING PUBLIC INFRASTRUCTURE PUBLIC SERVICES PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS REAL ESTATE RECESSION RECESSIONS REMITTANCES RESERVES RETURN RETURNS REVENUE BONDS REVOLVING FUNDS SHAREHOLDERS SOCIAL SERVICES SOCIAL WELFARE STATE SUPPORT STOCK EXCHANGE SUPPLY OF CREDIT TAX TAX EXEMPTION TAX EXEMPTIONS TAX SYSTEM TAXATION TELECOMMUNICATIONS TRADING TREASURY UNEMPLOYMENT UNION URBAN DEVELOPMENT URBAN INFRASTRUCTURE URBANIZATION VARIABLE RATE The financial and economic crisis that started in the United States has finally impacted all urban communities and investment financing systems around the world. Local governments grappling with the crisis face a number of constraints which, though disparate in nature, have a cumulative effect. This phenomenon has created a number of extremely difficult situations. In general terms, the consequences of the crisis can be felt on four levels: 1) revenue-either generated by local governments or derived from State transfers-which may be subject to sharp declines; 2) expenditures, which are rising because of the slowdown in economic activity and the corresponding increases in unemployment and social welfare needs; 3) financing capacities, which are shrinking owing to the difficulty in obtaining loans and the increase in the cost of money; and 4) foreign investment, which has declined; operations underway, which have been put on hold in many instances; and projects, which have either been cancelled or delayed. The two major financing systems bond issues and banks whether specialized or not, have been heavily impacted. Governments have adopted different measures depending on political and institutional environment. The situation differs greatly from one country to another. In some institutional contexts, local governments are relatively sheltered while in others, they are exposed. In terms of assets, local governments that can invest their funds in the market have been directly affected by losses in capital. The deterioration in local government accounts is often one of the factors constraining the ability of these governments to borrow. 2013-09-18T19:26:04Z 2013-09-18T19:26:04Z 2009-12 http://documents.worldbank.org/curated/en/2009/12/18227250/local-governments-financial-crisis-analysis http://hdl.handle.net/10986/15782 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo Cities Alliance Cities Alliance, Washington, DC Economic & Sector Work :: City Development Strategy (CDS) Economic & Sector Work |