The Economic Premise series summarizes good practices and key policy findings on topics related to economic policy. They are produced by the Poverty Reduction and Economic Management (PREM) Network Vice-Presidency of the World Bank.
(World Bank, Washington, DC, 2010-05)
Canuto, Otaviano; Liu, Lili
This note focuses on the impact of the
global financial crisis on subnational debt financing. The
report approach the following questions: why is subnational
debt financing important? What are the impacts of the crisis
on the fiscal balance and financing cost of subnational
governments (SNGs)? What explains the variations across
countries in the ability of SNGs to proactively address the
threat of fiscal deterioration? And, equally important, what
are the long-term structural challenges facing SNGs in
sustainable financing of infrastructure and social services?