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- W2341446441 abstract "The World Bank has helped define expenditure reform in 83 countries from 1979 to 1994 through 219 operations. Reform efforts, through conditions for loans and credits, have focused on reducing and restructuring capital expenditures, reducing subsides, reforming public employment, cutting the public sector wage bill, emphasizing operations and maintenance of existing facilities, and increasing social sector spending. This paper examines the effectiveness of these conditions in bringing about expenditure reform. The paper concludes that (a) Bank loan conditions had small positive effects on expenditure patterns; (b) The loan conditions on social sector spending had a stimulative impact on social spending; and (c) Budgetary inflexibility limited the success of loan conditions on public expenditures. From an analysis of public expenditures, the paper draws specific lessons on improving the effectiveness of expenditures. These include: (i) Expenditure policy reform must take a governance perspective and focus on the authorizing environment and operational capacity of governments; (ii) Federalism or multi−government dimensions of fiscal systems are critical to the reform of public expenditure policies; (iii) Public sector performance monitoring indicators should pay greater attention to outputs and outcomes; (iv) Broader guidance on reform must be adapted to country specific−situation; (v) Participatory processes and institutions (participatory democracy) rather than sophisticated analysis (such as cost−benefit analysis) is a key to improved public sector decision making; (vi) Flexibility in the use of funds is helpful in achieving results; (vii) General guidelines on policy environment pre−requisites for external assistance would be helpful in creating a culture of responsible governance; (viii) Open debate on policy issues contributes to effective development assistance; (ix) Desirable but politically difficult reform may be feasible in times of major fiscal crisis; and (x) Private sector participation can enhance efficiency and equity of public service provision." @default.
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- W2341446441 date "1997-12-31" @default.
- W2341446441 modified "2023-09-27" @default.
- W2341446441 title "Public expenditure reform under adjustment lending" @default.
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- W2341446441 doi "https://doi.org/10.1596/0-8213-4160-x" @default.
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