Brahmbhatt, MilanCanuto, Otaviano2014-02-182014-02-182012-10https://hdl.handle.net/10986/17076The global economic crisis that broke out in 2008 has reawakened interest in fiscal policy. In the early stages of the crisis, there was a widespread turn to countercyclical fiscal stimulus. Furthermore, the recent euro area crisis has underlined the importance of long-term fiscal sustainability for macroeconomic stability. More subtly, the global crisis has also refocused interest in fiscal policy as an instrument for longer-term growth and development. In the potential 'new normal' of continued sluggishness in the advanced world, developing countries have strong incentives to seek out new domestic engines for efficiency and productivity growth, as well as for greater equity in development. The potential of fiscal policy to promote these ends is therefore of great interest to developing country policy makers. This note focuses on that potential and provides an overview of how fiscal positions in developing countries have evolved in the wake of the crisis, as well as some emerging policy lessons. It then sketches a conceptual framework for thinking about the connections between fiscal policy and longer-term growth and development. Finally, this note highlights some findings about the connections between fiscal policy and development.en-USCC BY 3.0 IGOAGGREGATE DEMANDBALANCE SHEETBENEFITS OF PUBLIC SPENDINGBUDGET CONSTRAINTBUDGET PLANNINGCAPACITY CONSTRAINTSCAPITAL STOCKSCASH TRANSFERSCHECKSCIVIL SOCIETY ORGANIZATIONSCOLLECTIVE ACTIONCOMMODITIESCOMMUNICATIONS TECHNOLOGYCOMPUTABLE GENERAL EQUILIBRIUMCONFIDENCE OF INVESTORSCOST-EFFECTIVENESSCOSTS OF GOVERNMENTCOSTS OF TAXATIONCURRENT ACCOUNT DEFICITSCUT SPENDINGDEBT RATIOSDEBT RELIEFDEBTSDEVELOPING COUNTRIESDEVELOPING COUNTRYDISTRIBUTION OF INCOMEDISTRIBUTIONAL EFFECTSDISTRIBUTIONAL EQUITYDISTRIBUTIONAL IMPACTSDISTRIBUTIONAL OUTCOMESDOMESTIC FINANCIAL MARKETSECONOMIC CRISISECONOMIC PERFORMANCEECONOMIC SHOCKSEMERGING MARKETSEXCHANGE RATEEXCHANGE RATE REGIMESEXPENDITUREEXPENDITURE TRACKINGEXPENDITURE TRACKING SURVEYSEXPENDITURESEXTERNAL DEBTEXTERNALITIESFINANCIAL ACCOUNTABILITYFINANCIAL MANAGEMENTFINANCIAL POSITIONFINANCIAL SECTORFISCAL ADJUSTMENTFISCAL DECISIONSFISCAL DEFICITSFISCAL IMPACTFISCAL PERFORMANCEFISCAL PLANSFISCAL POLICIESFISCAL POLICYFISCAL RULESFISCAL STANCEFISCAL STIMULUSFISCAL SUSTAINABILITYFLEXIBLE EXCHANGE RATESFOREIGN ASSETSFOREIGN BORROWINGGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT EXPENDITUREGOVERNMENT POLICIESGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROWTH RATEHOLDINGHOUSINGIMPROVING RESOURCE ALLOCATIONINCOME DISTRIBUTIONINFLATIONINFLATIONARY PRESSUREINSTITUTIONAL CAPACITYINSTRUMENTINSURANCEINSURANCE MARKETSINSURANCE POLICIESINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL MONETARY FUNDINTERNATIONAL RESERVESINVESTINGINVESTMENT EXPENDITUREINVESTMENT MANAGEMENTINVESTMENT PROJECTSLIQUIDITYLIVING STANDARDSLOW-INCOME COUNTRIESLOW-INCOME COUNTRYMACROECONOMIC INSTABILITYMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMARKET FAILURESMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKMICRODATAMIDDLE-INCOME COUNTRIESMIDDLE-INCOME COUNTRYMISSING MARKETSMONETARY POLICYNATIONAL INCOMENATURAL CAPITALNATURAL RESOURCENATURAL RESOURCESNEW MARKETSOPEN ECONOMYOPPORTUNITIES FOR CORRUPTIONOUTPUTOUTPUTSPOLICY DECISIONSPOLICY RESPONSESPOLITICAL ECONOMYPOVERTY REDUCTIONPRIVATE INSURANCEPRIVATE INVESTMENTPRIVATE MARKETPRIVATE MARKETSPRIVATE SECTORPRIVATE SECTOR CREDITPROGRAMSPUBLICPUBLIC ACTIONPUBLIC ASSETSPUBLIC BORROWINGPUBLIC CAPITALPUBLIC CAPITAL SPENDINGPUBLIC DEBTPUBLIC ECONOMICSPUBLIC EXPENDITUREPUBLIC FINANCEPUBLIC FINANCESPUBLIC FINANCIAL MANAGEMENTPUBLIC FINANCIAL MANAGEMENT INSTITUTIONSPUBLIC GOODSPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENT SPENDINGPUBLIC INVESTMENTSPUBLIC RESOURCESPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC SPENDINGPUBLIC SPENDING LEVELSPUBLIC WORKSQUALITY OF PUBLIC SPENDINGREMOTE AREARETURNSRISK MANAGEMENTROADSSAFETY NETSSAVINGSSOCIAL EXPENDITURESSOCIAL INSURANCESOCIAL RISKSOCIAL RISK MANAGEMENTSOCIAL WELFARESOLVENCYSUSTAINABLE DEVELOPMENTTAXTAX CUTSTAX POLICIESTAX STRUCTURETRANSPARENCYVOLATILITY10.1596/17076