Is Fiscal Policy the Answer?

Page 276

250

Krumm and Kularatne

19 percent according to IDA at Work: Water Supply and Sanitation (World Bank 2010a). As noted in chapter 3, public investment management systems have eight must-have features, both upstream and downstream: strategic guidance, appraisal, independent review, project selection and budgeting, project implementation, project adjustment, facility operation, and postproject review. These features are interdependent. A review of systems as they are actually functioning in diverse settings noted similarities in weaknesses across several dimensions. 24. Based on discussions at the High-Level Workshop on Africa Fiscal Policy for Growth in Light of Global Crisis. 25. In the fiscal 2009/10 budget, a relatively large allocation was made to a conditional economic stimulus at the district level—K Sh 22 billion (about US$280 million or nearly 1 percent of GDP)—aimed at public service delivery more broadly. 26. Although the World Food Program has been providing emergency support for many years (together with recipient governments) and has developed a number of simple community- and household-based measures of vulnerability to shocks, ex post analysis of those programs has shown relatively high rates of errors of both inclusion and exclusion. 27. The government decided against a pass-through of higher fuel prices to domestic consumers and directly compensating fuel retailers for the loss. 28. A study is under way on the possible lessons from the experience with the limited number of programs in African LICs. 29. World Bank (2009a) Africa’s Infrastructure: A Time for Transformation, showing how inadequate spending on maintenance has contributed to a SubSaharan Africa infrastructure deficit and has undermined the effectiveness of capital investment. 30. The agreement covered a 4 percent salary increase and the clearance of overdue payments for past promotions. 31. Corruption is a perennial issue, as laid out in Silent and Lethal: How Quiet Corruption Undermines Africa’s Development Efforts (World Bank 2010g). 32. The empirical work on Kenya is sobering in this regard, but this remains an empirical question worthy of further analysis.

References Beck, T., S. M. Maimbo, I. Faye, and T. Triki. 2011. Financing Africa—Through the Crisis and Beyond. Washington, DC: World Bank. Berg, A., N. Funke, A. Hajdenberg, and I. Yackovlev. 2009. “Fiscal Policy in Sub-Saharan Africa in Response to the Impact of the Global Crisis.” Staff Position Note SPN/09/10, International Monetary Fund, Washington, DC.


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.