Dethier, Jean-Jacques2014-02-052014-02-052013-11https://hdl.handle.net/10986/16921The economic recession, the end of stimulus funding and central government cutbacks, rising social costs and aging, and the need for infrastructure upgrading for urbanization are putting enormous fiscal stress on cities. The financing capacity of municipalities is greatly affected because of the decline in the tax base, expenditure pressures, and growing and more expensive debt. Today's urban fiscal crisis is similar to that experienced in the 1970s, but the growing urbanization in the world and massive increase in municipal access to financial markets create a new context. This paper surveys three important topics related to the urban fiscal crisis in developed and developing countries: How do cities finance themselves? When they have access to financial markets, should city managers use loans, own revenues or private-public partnerships to pay for municipal expenditures? And what are the remedies to municipal fiscal crises in case of insolvency?en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCOUNTING SYSTEMSAD HOC GRANTSALMAUCTIONSAUTONOMYBAILOUTBALANCE SHEETBANKBANK FINANCINGBANKRUPTCIESBANKRUPTCYBANKRUPTCY PROCEDURESBANKSBOARDS OF DIRECTORSBONDBOND INSTRUMENTBOND INSTRUMENTSBOND ISSUANCEBOND RATINGSBONDSBORROWINGBORROWING COSTSBUDGET CONSTRAINTSCADASTRESCAPACITY BUILDINGCAPITAL BUDGETINGCAPITAL INVESTMENTCAPITAL MARKETSCAPITAL OUTLAYSCENTRAL GOVERNMENTSCITY EXPENDITURESCOLLATERALCOLLATERAL FOR LOANSCOLLECTIONSCOMMERCIAL BANKCOMMERCIAL BANK LOANCONTINGENT LIABILITIESCONTRACTSCOST OF CAPITALCREDITCREDIT MARKETCREDIT MARKETSCREDIT RATINGCREDIT RATINGSCREDITORSCREDITWORTHINESSDEBTDEBT DEFAULTDEBT FINANCINGDEBT INSTRUMENTDEBT REPAYMENTDEBT RESTRUCTURINGDEBT SERVICEDEBT SERVICE PAYMENTSDEBT STOCKDEBTORSDEBTSDECENTRALIZATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT AUTHORITIESDEVOLUTIONDOMESTIC CAPITALDOMESTIC DEBTDOMESTIC DEBT MARKETSDOMESTIC MARKETSELECTRICITY SERVICESEQUALIZATIONEXCHANGEEXPENDITUREEXTERNALITIESFINANCEFINANCESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT CAPACITYFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMFISCAL CENTRALIZATIONFISCAL CONSTRAINTSFISCAL DECENTRALIZATIONFISCAL DEFICITSFISCAL FEDERALISMFISCAL LEGISLATIONFISCAL POLICYFIXED INTERESTFIXED INTEREST RATEFOREIGN CAPITALFOREIGN INVESTMENTFOREIGN INVESTORSFUTUREGOODGOODSGOVERNANCEGOVERNMENT BUDGETSGOVERNMENT EXPENDITUREGOVERNMENT FINANCESGOVERNMENT SUBSIDIESGOVERNMENTSGRANT FUNDINGGRANTSGUARANTEEGUARANTEESHOUSINGHUMAN CAPITALINCOME GROWTHINFRASTRUCTUREINFRASTRUCTURE INVESTMENTSINSTRUMENTSINTERESTINTEREST RATESINTERGOVERNMENTAL FISCAL RELATIONSINTERGOVERNMENTAL RELATIONSINTERGOVERNMENTAL TRANSFERINTERGOVERNMENTAL TRANSFERSINTERNAL RATE OF RETURNINTERNATIONAL BANKINTERNATIONAL FINANCEINTERNATIONAL RATING AGENCYINVESTINGINVESTMENT CORPORATIONINVESTMENT PROJECTSINVESTORINVESTORSISSUANCEISSUANCE OF BONDSLANDLAND PRICESLAND VALUELARGE CITIESLAWSLEGAL FRAMEWORKLEGAL FRAMEWORKSLEGISLATIONLENDINGLEVEL OF RISKLIQUIDITYLIVING STANDARDSLOANLOANSLOCAL DEBTLOCAL DEBT MARKETLOCAL GOVERNMENTLOCAL GOVERNMENT STRUCTURESLOCAL GOVERNMENTSLONG-TERM DEBTMANDATESMARKETMARKET ACCESSMARKET INFRASTRUCTUREMARKET STRUCTUREMATURITIESMATURITYMETROPOLITAN AREASMETROPOLITAN CITIESMICROFINANCEMORAL HAZARDMUNICIPAL BONDSMUNICIPAL CREDITMUNICIPAL DEVELOPMENTMUNICIPAL FINANCEMUNICIPAL GOVERNMENTSMUNICIPAL INVESTMENTSMUNICIPALITIESOPERATING EXPENSESOPPORTUNITY COSTOPPORTUNITY COSTSOPTIONSPAYMENT OBLIGATIONSPENSIONSPRIVATE CAPITALPRIVATE FINANCEPRIVATE INVESTMENTPRIVATE INVESTORSPRIVATIZATIONPRODUCTIVITYPROFITSPROJECTSPROPERTYPROPERTY TAXESPROVINCIAL DEBTPUBLIC ASSETSPUBLIC BUDGETPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC FINANCEPUBLIC POLICIESPUBLIC SERVICESPUBLIC TRANSPORTPUBLIC TRANSPORTATIONRATING AGENCIESREAL PROPERTYREGULATORY FRAMEWORKRETURNRETURNSREVENUEREVENUE MOBILIZATIONREVENUESRISKSAVINGSAVINGSSERVICESSHARESOLVENCYSOVEREIGN DEBTSOVEREIGN RISKSSTRATEGIESSUBNATIONAL FINANCESUBNATIONAL GOVERNMENTSSUBSIDIESTARIFFTARIFFSTAXTAX COLLECTIONSTAXATIONTAXESTECHNICAL ASSISTANCETELECOMMUNICATIONSTRANSACTIONTRANSACTION COSTSTRANSACTIONSTRANSFERSTRANSITION ECONOMIESTRANSPARENCYTRANSPORTTREASURYURBAN DEVELOPMENTURBAN GOVERNMENTSURBAN PUBLIC FINANCEURBANIZATIONUSER CHARGESVALUEWAGESWATER SUPPLYinsolvencyWorld Bank10.1596/1813-9450-6693