By Timothy Irwin
ISBN-10: 0585472920
ISBN-13: 9780585472928
ISBN-10: 0821355562
ISBN-13: 9780821355565
Govt judgements are hardly pushed exclusively via the dictates of cost-benefit analyses. producing strong selection making approximately financial help additionally calls for strategies for choice making that facilitate stable research and mood the impression of self-interest. This record units out a framework meant to aid governments make greater judgements approximately giving financial aid for personal infrastructure providers and offers a few instruments to facilitate research. numerous rules to augment the collocation of knowledge, incentives, and judgements are proposed: • Giving accountability to humans engaged on the target (rather than the tool or the infrastructure service); • setting apart determination making from supply; • regarding these accountable for bills; • using selection making boards that emphasize tradeoffs; • normally producing info on expenses and merits; • Requiring regimen disclosure of data; • Charging for particular types of help; and • making sure responsibility for judgements.
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Extra resources for Public Money for Private Infrastructure: Deciding When to Offer Guarantees, Output-Based Subsidies, and Other Forms of Fiscal Support (World Bank Working Papers)
Sample text
Using techniques developed to price financial options, the study simulated possible outcomes in each project, by making assumptions about the way the key variables evolved over time (for example, do they roughly follow a random walk or do they have a tendency to revert to a mean), the expected growth rates of those variables, and their variability. In the case of the toll-road, for example, the government had given a guarantee that would top-up the private operator’s revenue if traffic fell below a certain level.
Gómez-Lobo et al. (2000 a and b) show how familiar surveys can be used to provide better subsidy-relevant information. Likewise, governments cannot reliably make good decisions about providing guarantees or long-term subsidies unless they understand the cost of providing the guarantee or the subsidy. The rules that govern these decisions should therefore require estimates of the cost. Lastly, generating good information on the costs and benefits of fiscal support also requires processes for routinely evaluating the success of public support in achieving its objectives.
Figure 7-2 presents an example from Honduras, where a study by Wodon et al. (2003) found that more than 80 percent of the subsidy in a “lifeline” electricity-consumption program (in which the government reduced the cost of electricity to those consuming relatively small quantities of it) went to those who were nonpoor. And even limiting the range of potential beneficiaries to those who were clients of the electricity utility, and thus ignoring the predominantly poor households unconnected to the electricity network, other targeting criteria, such as characteristics of the households’ housing, were more accurate than electricity consumption (Wodon et al.
Public Money for Private Infrastructure: Deciding When to Offer Guarantees, Output-Based Subsidies, and Other Forms of Fiscal Support (World Bank Working Papers) by Timothy Irwin
by Ronald
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