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Intergovernmental transfers and public spending in Brazilian municipalities

ARVATE, PAULO; MATTOS, Enlinson; ROCHA, Fabiana
Fonte: Fundação Getúlio Vargas Publicador: Fundação Getúlio Vargas
Tipo: Relatório
EN_US
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36.17%
We estimate the effects of unconditional (full fiscal decentralization) versus conditional (partial fiscal decentralization) block grants on local public spending in Brazilian municipalities. Our results suggest that the effect of unconditional and conditional transfers do not differ statistically. Their combination promotes a full crowding-in effect on aggregate public spending — i.e., for $1 of unconditional and conditional grant receipts; we find $1 of additional local public expenditures, greater than the corresponding effect of local income, providing further evidence for the flypaper effect. Moreover, the effect of unconditional transfers on education (health) spending is smaller than the effect of conditional education (health) transfers but greater than the corresponding effect of local income. We consider four strategies to identify causal effects of federal grants and the local income on fiscal responses regarding Brazilian local governments: (i) a fuzzy regression discontinuity design, (ii) Redistributive rules of education funds, (iii) Oil and Gas production, and (iv) Rainfall deviations from the historical mean.

Local Perceptions of Federal Block Grants

Tomfohrde, Robert F.; Soman, Laurie A.
Fonte: PubMed Publicador: PubMed
Tipo: Artigo de Revista Científica
Publicado em /06/1984 EN
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We report the results of a survey of California county medical societies and county health officers on federal health block grants. Survey respondents agreed that the existing network of health services funded through the federal block grants and the current statelocal apparatus for providing these services are sound. Most respondents do not recommend major changes in the service system, and most support a strong state role in administering programs under the block grants.

Block grants and the resurgence of federalism.

Brandt, E N
Fonte: PubMed Publicador: PubMed
Tipo: Artigo de Revista Científica
Publicado em //1981 EN
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36.31%
In an address, this past summer, to the National Convention of State Legislatures, President Reagan captured to essence of the block grant proposal in a sentence. "Our task," the President said, "is to restore the constitutional symmetry between the Central Government and the States and to re-establish the freedom and variety of federalism." Consolidating the current profusion of complex and often overlapping Federal health grants into four State-administered packages will greatly reduce administrative costs and allow us to make wise use of scarce health dollars in a time of economic trial. At the same time, these changes will give States the managerial and policy flexibility that they need, but have lacked, to respond to their own most pressing needs. Of perhaps most importance in the long run, this system of grants will return a just portion of responsibility for the preservation and improvement of our health care system to the States, their communities, and the people. It is precisely this kind of equilibrium, this symmetry, that the President had in mind and that, for too many years, the Federal-State-Private partnership in health has been without. The restoration of this equilibrium, it should be noted by all, is underway.

School Inputs, Household Substitution, and Test Scores

Das, Jishnu; Dercon, Stefan; Habyarimana, James; Krishnan, Pramila; Muralidharan, Karthik; Sundararaman, Venkatesh
Fonte: Banco Mundial Publicador: Banco Mundial
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Empirical studies of the relationship between school inputs and test scores typically do not account for the fact that households will respond to changes in school inputs. This paper presents a dynamic household optimization model relating test scores to school and household inputs, and tests its predictions in two very different low-income country settings -- Zambia and India. The authors measure household spending changes and student test score gains in response to unanticipated as well as anticipated changes in school funding. Consistent with the optimization model, they find in both settings that households offset anticipated grants more than unanticipated grants. They also find that unanticipated school grants lead to significant improvements in student test scores but anticipated grants have no impact on test scores. The results suggest that naïve estimates of public education spending on learning outcomes that do not account for optimal household responses are likely to be considerably biased if used to estimate parameters of an education production function.

Higher Education Financing in the New EU Member States : Leveling the Playing Field

Canning, Mary; Godfrey, Martin; Holzer-Zelazewska, Dorota
Fonte: Washington, DC: World Bank Publicador: Washington, DC: World Bank
EN_US
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36.24%
The study reviews the experience in the EU8 countries of the emergence of private higher education institutions and introduction of fees for student who do not gain regular admission. This has resulted in a dual-track system that is affecting the equity of access to higher education. The authors have addressed this with a variety of financing mechanisms in the EU8 countries and seek to develop some useful policy options to "level the playing field" for countries contemplating further reforms, which would include the introduction of variable fees, needs-based grants and loans to increase private financial flows into higher education while facilitating equal access across the board. The study begins with and introduction. Chapter 2 provides an overview of current higher education systems in the EU8 in a comparative perspective. Chapter 3 suggests some directions for further reform initiatives. Chapter 4 concludes.

Do Community-Driven Development Projects Enhance Social Capital? Evidence from the Philippines

Labonne, Julien; Chase, Robert S.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
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This paper explores the social capital impacts of a large-scale, community-driven development project in the Philippines in which communities competed for block grants for infrastructure investment. The analysis uses a unique data set of about 2,100 households collected before the project started (2003) and after one cycle of sub-project implementation (2006) in 66 treatment and 69 matched control communities. Participation in village assemblies, the frequency with which local officials meet with residents and trust towards strangers increased as a result of the project. However, there is a decline in group membership and participation in informal collective action activities. This may have been because households were time-constrained, so that in order to participate in project activities, they needed to temporarily reduce their participation in informal activities. An alternative explanation is that the project improved the efficiency of formal forms of social capital and thus households needed to rely less on informal forms. Finally...

Beyond Wage Bill Ceilings : The Impact of Government Fiscal and Human Resource Management Policies on the Health Workforce in Developing Countries, Background Country Study for Rwanda

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
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One of the main explanations put forth on why access to health workers is so low in developing countries is that there are insufficient resources within the public sector to pay the wage bill - the salary and allowance payments - of an expanded health workforce. In turn, the lack of wage bill resources for the health sector is thought to be a direct result of restrictive macroeconomic policies that limit the expansion of the overall public sector wage bill. The overarching message in this report is that, despite the relative contraction of the public sector wage bill, Rwanda has not only protected the health sector, but has succeeded through decentralization and the introduction of performance-based financing in linking salaries to performance in the health sector. The decentralization of budgets, along with the implementation of the performance-based grants scheme, has had two major effects. First, it has increased the resource envelope available for hiring health workers since there is a lot of flexibility in how the performance based grants can be used. Second...

Designing and implementing Agricultural Innovation Funds : Lessons from Competitive Research and Matching Grant Projects

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
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36.28%
Many countries are using innovation funds in the agricultural sector to support innovators and their links to public institutions, private entrepreneurs, and other actors, such as groups of rural producers. These funds create platforms for innovative activity by providing incentives for quality and collaboration. This report synthesizes experience with the two main innovation funds that the World Bank has used to fund agricultural innovation, competitive research grants and matching grants, and offers lessons and guidelines for designing and implementing them. Although the report draws extensively on experience with World Bank investments, the lessons are relevant in other contexts. The practical aspects of designing and implementing successful grant schemes are emphasized throughout.

Public Services and Expenditure Need Equalization : Reflections on Principles and Worldwide Comparative Practices

Shah, Anwar
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
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36.49%
This paper reviews the conceptual challenges as well as lessons from worldwide experiences in implementing public services and expenditure need compensation in fiscal equalization transfers with a view to developing guidance for practitioners. The paper concludes that while in theory a strong case for a comprehensive fiscal equalization can be made, in practice fiscal need equalization as part of a comprehensive equalization program introduces significant complexity. This works against the simplicity, transparency and general acceptability of the program. This does not imply that fiscal need equalization should be abandoned in the interest of simplicity and transparency. Instead simplicity, transparency and local autonomy are preserved by having fiscal need equalization through public service oriented (specific purpose block transfers) output based fiscal transfers that impose no spending requirements for any functions or objects of expenditures. Such transfers contrast with traditional earmarked transfers...

Ethiopia : Second Urban Local Government Development Program as a Program-for-Results Operation

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
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36.24%
The second Urban Local Government Development Program (ULGDP II) will enhance the institutional performance of participating ULGs in developing and sustaining urban infrastructure and services, through provision of three interlinked and mutually strengthening tools: (i) Performance-based investment grants, (ii) objective and neutral annual performance assessments, linked to the size of allocations and (iii) comprehensive capacity building support to the cities and to the regions to enhance their capacity in supporting ULGs as well as support to the implementing agency. The Ministry of Urban Development, Housing and Construction (MUDHCo, the Ministry) will be the agency in charge of the Program, as under ULGDP. The Ministry will be supported in areas of capacity building framework for regions, monitoring, reporting and project management and the Program also encompass capacity building to the Ministry to perform its core role related with the Program objectives.

Tunisia Urban Development and Local Governance Program : Technical Assessment Report

World Bank
Fonte: Washington, DC Publicador: Washington, DC
EN_US
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In this context, the reform of the LG capital grants and municipal investment planning framework forms the main strategic actions undertaken by the government towards the implementation of its decentralization agenda recently anchored in the new Constitution adopted in January 2014. This grant system, which had operated under an ex ante system of controls, is being restructured through the revision of the Decree 97-1135 governing the LG capital grant system. Through the restructuring, the government intends to improve the efficiency of the state financial support to municipal investment, make the allocation of capital grants more transparent and predictable, strengthen the decision-making power of LGs on the use of their investment funding, and progressively introduce a performance based dimension to their capital grant system. Along with revision of the above decree, the government has also issued a Ministerial Decree to introduce participatory municipal investment planning and budgeting systems, hence promoting citizen engagement in identifying investment needs and priorities. Under the same reform...

Revenue Sharing of Natural Resources in Africa : Reflections from a Review of International Practices

Brosio, Giorgio; Singh, Raju Jan
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
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46.21%
The African continent is one of the world richest regions in oil, gas and minerals. Proven reserves have expanded and prospects improved recently making the continent an important player on the world stage. The share of natural resources in GDP is increasing rapidly. Exports of minerals and hydrocarbons account for more than a quarter of total exports in half of the sub-Saharan economies and the share of natural resources revenue (NRR) on total government revenue is expected to become dominant for an increasing number of countries. Wealth of natural resources offers opportunities but it also brings in challenges. Natural resources have generally been linked to a series of negative outcomes like economic decline, corruption and autocratic rule (McNeish, 2010). Oil and minerals reserves are often point source natural resources, being usually very spatially concentrated. Their discovery becomes almost inevitably a potential source of conflict between the governments, the people of the producing areas and those of the rest of the country (Fearon and Laitin...

Information, Knowledge and Behavior

Cerdan-Infantes, Pedro; Filmer, Deon P.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
EN_US
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Improving education outcomes by disseminating information to parents and thereby encouraging them to become more actively engaged in school oversight is attractive, since it can be done relatively cheaply. This study evaluates the impact of alternative approaches to disseminating information about a school grants program in Indonesia on parents knowledge about the program in general, knowledge about the implementation of the program in their childs school, and participation in school activities related to the program as well as beyond it. Not all dissemination approaches yielded impacts, and different modes of dissemination conveyed different types of information best, resulting in different impacts on behavior. Specifically, the low-intensity approaches that were tried—sending a letter from the principal home with the child, or sending a colorful pamphlet home with the child—had no impact on knowledge or participation. On the other hand, holding a facilitated meeting with a range of school stakeholders or sending targeted text messages to parents did increase knowledge and participation. Facilitated meetings mostly increased overall knowledge and fostered a feeling of transparency on the part of parents...

A Report on KDP Mandiri

Basri, Nurlily; Barokah, Siti; Monterio, Carolina; Beattie, Kevin
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Relatório
EN_US
Relevância na Pesquisa
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Indonesia’s Kecamatan Development Project (KDP) began in 1998 and is implemented through the Ministry of Home Affairs, Community Development Office (PMD). KDP aims to alleviate poverty and improve local governance. The Project provides block grants of approximately USD 56,000 to USD 111, 000 to sub-districts (kecamatan). Villagers engage in a participatory planning and decision-making process to allocate those resources for their self-defined development needs and priorities. KDP is one of the largest community development projects in Indonesia, implemented in 29 of Indonesia’s 32 provinces. Field reports state that local governments in several parts of the country have initiated KDP replication or ‘spin off’ projects funded through their own budgets. These projects purport to replicate KDP to varying degrees. The main goal of this study is to examine in greater depth ten KDP replication schemes and to assess the extent to which they adopt certain principles and programmatic features of KDP. This study is important as an initial step to gain insight into how KDP’s principles and procedures may be influencing other government development projects especially in the areas of improved governance...

Gender Inclusion Strategies in PNPM

Azarbaijani-Moghaddam, Sippi
Fonte: World Bank, Jakarta Publicador: World Bank, Jakarta
Tipo: Trabalho em Andamento
EN_US
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46.38%
The Program Nasional Pemberdayaan Masyarakat (PNPM) or National Community Empowerment Program is the world’s largest program of its kind with long term goals to reduce poverty by making development planning more inclusive, accountable, and reflective of local needs. PNPM currently covers about 70,000 rural and urban communities across Indonesia. PNPM works by giving communities block grants to spend on projects developed through a participatory, bottom-up planning process, facilitated by social and technical specialists who provide advice to communities without controlling funds. PNPM is supported by a multi-donor trust fund called the PNPM Support Facility (PSF). Part of PSF’s role is to provide more effective strategic support to the government’s objectives, especially by improving the effectiveness of PNPM’s gender action plan. Increasing women’s voice in community planning and decision-making has been an explicit goal of PNPM since its founding, and since 2007 PNPM Rural has had an overarching gender action plan to guide actions to involve women in all procedures. A maximum of 25 per cent of all PNPM funds are reserved to support proposals from village women’s groups for RLF groups referred to in this report as SPP. Women play increasingly central roles in PNPM’s kecamatan and village administration. The PSF engaged a gender specialist with expertise in working in challenging rural contexts to review the system and provide a short critical report and practical recommendation on gender sensitive approaches in the overall implementation of PNPM Rural. A PSF operational analyst with in depth knowledge of PNPM accompanied the specialist to the field. Objectives and outputs are laid out in full in described in Appendix 6. The report below lays out the findings and recommendations of the mission.

Randomized Impact Evaluation of Afghanistan's National Solidarity Programme; Final Report

Beath, Andrew; Christia, Fotini; Enikolopov, Ruben
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Economic & Sector Work :: Other Rural Study; Economic & Sector Work
ENGLISH; EN_US
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46.21%
The National Solidarity Programme (NSP) is the largest development program in Afghanistan. Since its inauguration in 2003, NSP has established 32,000 Community Development Councils (CDCs) across 361 districts in all of Afghanistan's 34 provinces and has financed nearly 65,000 development projects. NSP seeks to improve the access of rural villagers to basic services and to create a foundation of village governance based on democratic processes and female participation. The program is structured around two major village-level interventions: 1) the creation of a gender-balanced CDC through a secret-ballot, universal suffrage election; and 2) the disbursement of block grants, valued at $200 per household up to a community maximum of $60,000, to fund village-level projects selected, designed, and managed by the CDC in consultation with villagers. The NSP Impact Evaluation (NSP-IE) is a multi-year randomized control trial designed to measure the effects of implementation of the second phase of NSP on a broad range of economic...

Overview of the Research and Innovation Sector in the Western Balkans

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Publications & Research :: Working Paper; Publications & Research
ENGLISH; EN_US
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This overview of the research sector in the Western Balkans is a companion piece to the Western Balkans regional research and development (R and D) strategy for innovation. The strategy aims to strengthen the region's research capacity, enhance intraregional cooperation, promote collaboration with business sectors, explore possibilities for financing R and D from European Union (EU) funding schemes and other external sources, and help integrate the region into the European research area (ERA) and innovation union. This overview provides the background and analysis that informed the development of the strategy. The background work includes four studies on the different components of the research sector, a policy questionnaire, and seven country studies reviewing key policies, institutions, and performance of the national research sectors. This overview outlines the performance of the research and innovation sector, and describes the major drivers of this performance. It starts by presenting a framework of the different components of research and innovation in the Western Balkans. This leads into section two discussing the performance of the research sector...

Lao PDR Economic Monitor, January 2014 : Managing Risks for Macroeconomic Stability

World Bank
Fonte: Vientiane Publicador: Vientiane
Tipo: Economic & Sector Work :: Economic Updates and Modeling; Economic & Sector Work
ENGLISH; EN_US
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36.21%
The sector focus for this issue concerns school based management, current conditions and recommendations for the future. Lao PDR's education system faces challenges in meeting its goals of providing all students with access to education and improving learning outcomes. The study presents a framework explaining how school based management can help improve education quality. The Lao economy is estimated to grow at 8.1 percent in 2013, fueled by a vibrant resource sector, continued FDI-financed investment in hydropower, and accommodative macro economic policies. Growth is projected to moderate to 7.2 percent in 2014, reflecting a small projected slowdown in some real sectors, mainly mining and construction. Inflationary pressures, mainly through food prices, are not showing signs of dissipating by end 2013. In FY12/13, the fiscal deficit widened markedly due to a combination of a large increase in public sector wages and benefits, and a decline in grants and mining revenues. The FY13/14 budget plan indicates a narrower fiscal deficit of about 4.3 percent. The risk of debt distress remains moderate...

Albania Local Finance Policy Note : Programmatic Public Expenditure and Institutional Review

World Bank
Fonte: Washington, DC Publicador: Washington, DC
Tipo: Economic & Sector Work :: Policy Note; Economic & Sector Work
ENGLISH; EN_US
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Albania has undertaken major reforms in its system of local government finance since 2000. What had been a system in which local functions were ambiguous and financing was largely provided through tightly controlled earmarked grants is now one in which functions are relatively clear and local governments have more autonomy over the allocation of funds. A new system of competitive grants for infrastructure investment has been introduced. Parliament has enacted a new law on local borrowing. Within this framework, however, several controversies remain which are addressed in this policy note. In the long term Albania must also grapple with certain organizational issues. One is the role of regional governments, which now lack any major clearly defined function. While the Government's decentralization strategy proposes a range of possible functions for regional governments, most of these roles could be carried out through other means. The other organizational issue is the consolidation of small communes. The Government's decentralization strategy proposes the eventual consolidation of small local governments into larger units. International experience...

Intergovernmentalgrantrules, the "golden rule" of public finance and local expenditures

Pereira, Paulo T.; Silva, João Andrade e
Fonte: ISEG – Departamento de Economia Publicador: ISEG – Departamento de Economia
Tipo: Outros
Publicado em //2008 ENG
Relevância na Pesquisa
46.37%
The Stability and Growth Pact and the process of fiscal consolidation in several European countries have enhanced the role of fiscal rules at sub-national level. This paper analyzes the combined effect of a rule to allocate capital and current block grants to local governments and the "golden rule" of public finance (surplus of current balance). We argue that the two fiscal rules introduce significant rigidities and distortions in local governments' expenditures structure since these mimic the structure of revenues. This effect is particularly relevant in municipalities that are more dependent of intergovernmental grants, mainly rural. On the other hand, urban municipalities with greater tax revenues (current revenues) are constrained in their ability to make capital investments because they receive per capita capital grants below what economies of scale would suggest. An empirical analysis of Portuguese local governments shows that it is no longer the median voter, but fiscal rules, that command the broad pattern of expenditure (current versus capital) at a local level. This paper is a contribution to the literature on the perverse effects of fiscal rules.