Publication:
Public Debt in Developing Countries : Has the Market-Based Model Worked?

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dc.contributor.authorPinto, Brian
dc.contributor.authorGill, Indermit
dc.date.accessioned2012-06-21T14:53:51Z
dc.date.available2012-06-21T14:53:51Z
dc.date.issued2005-08
dc.description.abstractOver the past 25 years, significant levels of public debt and external finance are more likely to have enhanced macroeconomic vulnerability than economic growth in developing countries. This applies not just to countries with a history of high inflation and past default, but also to those in East Asia, with a long tradition of prudent macroeconomic policies and rapid growth. The authors examine why with the help of a conceptual framework drawn from the growth, capital flows, and crisis literature for developing countries with access to the international capital markets (market access countries or MACs). They find that, while the chances of another generalized debt crisis have receded since the turbulence of the late 1990s, sovereign debt is indeed constraining growth in MACs, especially those with debt sustainability problems. Several prominent MACs have sought to address the debt and external finance problem by generating large primary fiscal surpluses, switching to flexible exchange rates, and reforming fiscal and financial institutions. Such country-led initiatives completely dominate attempts to overhaul the international financial architecture or launch new lending instruments, which have so far met with little success. While the initial results of the countries' initiatives have been encouraging, serious questions remain about the viability of the model of market-based external development finance. Beyond crisis resolution, which has received attention in the form of the sovereign debt restructuring mechanism, the international financial institutions may need to ramp up their role as providers of stable long-run development finance to MACs instead of exiting from them.en
dc.identifierhttp://documents.worldbank.org/curated/en/2005/08/6133225/public-debt-developing-countries-market-based-model-worked
dc.identifier.doi10.1596/1813-9450-3674
dc.identifier.urihttps://hdl.handle.net/10986/8632
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3674
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGENCY PROBLEMS
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE SHEET
dc.subjectBANK FOR INTERNATIONAL SETTLEMENTS
dc.subjectBONDS
dc.subjectBORROWING
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET CONSTRAINTS
dc.subjectBUDGET DEFICITS
dc.subjectBUSINESS CYCLE
dc.subjectCAPITAL BASE
dc.subjectCAPITAL FLIGHT
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL MOBILITY
dc.subjectCENTRAL BANK
dc.subjectCOMPETITIVENESS
dc.subjectCONCEPTUAL FRAMEWORK
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONTINGENT LIABILITIES
dc.subjectCONVERGENCE HYPOTHESIS
dc.subjectCOUNTER-CYCLICAL POLICIES
dc.subjectCROWDING OUT
dc.subjectCURRENCY RISK
dc.subjectCURRENT ACCOUNT
dc.subjectDEBT INSTRUMENTS
dc.subjectDEBT RATIOS
dc.subjectDEBT RESTRUCTURING
dc.subjectDEBT/GDP RATIOS
dc.subjectDEFAULT RISK
dc.subjectDEFICITS
dc.subjectDEVALUATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDIMINISHING RETURNS
dc.subjectDISCOUNT RATE
dc.subjectDOMESTIC POLICIES
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTLOOK
dc.subjectECONOMIC RATE OF RETURN
dc.subjectECONOMISTS
dc.subjectELECTRICITY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE REGIME
dc.subjectEXCHANGE RATES
dc.subjectEXTERNAL BORROWING
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTEGRATION
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL OPENNESS
dc.subjectFINANCIAL POLICIES
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SECTORS
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL BALANCE
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE RESERVES
dc.subjectGDP
dc.subjectGNP
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT SPENDING
dc.subjectGROWTH
dc.subjectGROWTH PACT
dc.subjectGROWTH POTENTIAL
dc.subjectGROWTH RATE
dc.subjectGROWTH THEORY
dc.subjectHARD BUDGET CONSTRAINTS
dc.subjectHIGH INFLATION
dc.subjectHUMAN CAPITAL
dc.subjectIMPLICIT EXCHANGE RATE GUARANTEES
dc.subjectINDEXATION
dc.subjectINFLATION
dc.subjectINFLATION TARGETS
dc.subjectINFLATION TAX
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectLABOR FORCE
dc.subjectLIQUIDITY
dc.subjectLOCAL CURRENCY
dc.subjectLONG-RUN GROWTH
dc.subjectMACROECONOMIC CRISIS
dc.subjectMACROECONOMIC ENVIRONMENT
dc.subjectMACROECONOMIC FACTORS
dc.subjectMACROECONOMIC FRAMEWORK
dc.subjectMACROECONOMIC LITERATURE
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMACROECONOMIC STABILITY
dc.subjectMARGINAL COST
dc.subjectMARGINAL PRODUCT
dc.subjectMICRO FOUNDATIONS
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectMORAL HAZARD
dc.subjectNET DEBT
dc.subjectNETWORK EXTERNALITIES
dc.subjectOUTPUT VOLATILITY
dc.subjectOVERVALUATION
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPORTFOLIO ALLOCATIONS
dc.subjectPOVERTY REDUCTION
dc.subjectPOWER PLANTS
dc.subjectPRESENT VALUE
dc.subjectPRESENT VALUE OF DEBT
dc.subjectPRIMARY DEFICIT
dc.subjectPRIMARY DEFICITS
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC INVESTMENT IN INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT PROGRAMS
dc.subjectPUBLIC INVESTMENTS
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SPENDING
dc.subjectREAL EXCHANGE
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL GDP
dc.subjectREAL INCOME
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATES
dc.subjectREDISTRIBUTIVE TAXATION
dc.subjectRESERVE REQUIREMENTS
dc.subjectREVENUE MOBILIZATION
dc.subjectSAVINGS
dc.subjectSOFT BUDGET CONSTRAINTS
dc.subjectSOVEREIGN RISK
dc.subjectSTABILIZATION PROGRAM
dc.subjectSTANDARD DEVIATION
dc.subjectSUSTAINED GROWTH
dc.subjectTAX
dc.subjectTAX RATES
dc.subjectTAXATION
dc.subjectTECHNOLOGICAL PROGRESS
dc.subjectTHEORETICAL MODELS
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRANSACTIONS COSTS
dc.subjectUSER CHARGES
dc.subjectVOLATILITY
dc.titlePublic Debt in Developing Countries : Has the Market-Based Model Worked?en
dspace.entity.typePublication
okr.crossref.titlePublic Debt In Developing Countries : Has The Market-Based Model Worked?
okr.date.doiregistration2025-04-10T10:26:59.854814Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2005/08/6133225/public-debt-developing-countries-market-based-model-worked
okr.guid837121468140047761
okr.identifier.doi10.1596/1813-9450-3674
okr.identifier.externaldocumentum000016406_20050729140641
okr.identifier.internaldocumentum6133225
okr.identifier.reportWPS3674
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/07/29/000016406_20050729140641/Rendered/PDF/wps3674.pdfen
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication211cec36-3fba-5b57-91c5-72448bf62eb6
relation.isAuthorOfPublication.latestForDiscovery211cec36-3fba-5b57-91c5-72448bf62eb6
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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