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1. Emerging public debt challenges in sub-Saharan Africa

Author:
Maureen Were
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Sub-Saharan Africa (SSA)’s public debt burden remains a challenge to development. Key drivers of public debt include large-scale financing of infrastructure development, adverse impact of multiple shocks including COVID-19 pandemic, maturity mismatches, and high vulnerability to exchange rate and interest rate volatility. The tight financial conditions following interest rate hikes in advanced economies have exacerbated the debt burden and heightened debt sustainability risks. Half of the SSA low-income countries are either in debt distress or at high risk of it. Countries in debt distress include middle-income economies. Given the high cost of debt servicing and lack of fiscal space, achievement of sustainable development goals is in jeopardy. A long-term sustainable solution requires a multi-pronged approach. The G20 Common Framework for debt treatment remains limited in scope, coverage, and impact. More needs to be done including consideration for debt relief. Other strategies include access to long-term concessional finance, domestic resource mobilization, and improved efficiency in public spending and fiscal management.
Topic:
Development, Infrastructure, Sustainability, Public Debt, and Public Spending
Political Geography:
Africa and Sub-Saharan Africa

2. Proposals for Reducing the Size and Cost of Running Government

Author:
Kojo P. Asante and David Asante Darko
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Ghana Center for Democratic Development
Abstract:
This paper explores the prospect of saving the country much-needed revenue by reducing the number of ministries and ministers in government and exactly how this may be achieved. It is an uncomfortable fact that the current sovereign debt crisis in Ghana, the worst in the country since the year 2000, has visited severe economic hardship on the cizens. For 18 months beginning June, 2021, year-on-year rates of inflaon in the country have risen consistently, going from 40.4% in October, 2022, to 50.3% in November, 2022, and finally to 54.1% for December, 2022, according to the Ghana Stascal Service. This has highlighted the urgency of prudent management and fiscal discipline by the country's economic managers. In a situaon where the country's access to capital markets are closed, expenditure cuts are inevitable and the government must lead by example.
Topic:
Government, Reform, Public Spending, and Debt Crisis
Political Geography:
Africa and Ghana

3. Joint public procurement as a tool for European Union industrial policy

Author:
Francesco Nicoli and Roel Beetsma
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Joint procurement is an important tool that is currently under-exploited at European Union level. It can greatly enhance the effectiveness of public spending in Europe, achieving greater coherence between spending across different countries, exploiting monopsony power, producing economies of scale, reducing downward competition between public authorities, improving the single market and producing a degree of solidarity without resulting in redistribution between EU countries. The EU has already implemented several joint-procurement projects, including for COVID-19 vaccines, gas supplies and ammunition for Ukraine. These previous experiences can work both as a blueprint and as a pilot for larger-scale actions. Joint procurement could be particularly relevant in sectors with substantial economies-of-scale and industry-government ties, such as defence. Despite some degree of political opposition, experimental public opinion studies have shown consistently that joint procurement in such areas can strongly improve public support for EU-level action. Measures that could expand European joint procurement in a politically sustainable way include the use of framework contracts, which allow for ad-hoc commitments tailored to the needs of different EU countries; reporting by countries of their future large public procurement plans as a part of the European Semester so that the European Commission could propose coordinated actions if necessary; and the use of staggered contracting and multiple-award strategies, which can ensure a level playing field among companies of similar market power, promoting market-building and supporting the entry of new competitors.
Topic:
Industrial Policy, Governance, European Union, Macroeconomics, and Public Spending
Political Geography:
Europe

4. An uphill struggle: a long-term perspective on the European public goods debate

Author:
Emmanuel Mourlon-Druol
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The historical track record of centralisation of public expenditures at European Union level is patchy, and the prospects of agreement on future common spending are not good. However, Russia’s attack on Ukraine, NextGenerationEU, ensuring the stability of the euro and the climate crisis have been cited as justifying a further step-up in public spending at EU level. In recent years, the economic debate over the definition and provision of so-called European public goods (EPGs) has also revived and has put upfront the question of what to spend at EU level, based on an economic interpretation of where spending would be more efficient. To provide a counterpart to the more abstract debate on EPGs, this paper analyses major discussions that have taken place since the beginning of European integration about increasing the EU’s fiscal capacity. It shows how heavily EU agreements on what public expenditure should be centralised have relied on political considerations, in addition to, or instead of, reasoning about economic efficiency. These precedents should inform today’s discussions. In particular, it should be remembered that: (a) very specific historical and political contexts made proposals to centralise expenditure at EU level convincing and successful; (b) the notion of ‘fiscal federalism’ was and is occasionally invoked but rarely put into practice; (c) progress depends on clearly delineated issues; and (d) a political agreement on a ‘non-market definition of the common interest’ remains crucial to any change.
Topic:
Governance, Budget, European Union, Public Spending, and Public Goods
Political Geography:
Europe

5. Existing Dispute: Does the new budget set the stage for a fresh phase of conflict in Iraq?

Author:
FARAS
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
On 12 June, 2023, Iraq's Council of Representatives approved a three-year budget (2023-2025) of 198.9 trillion dinars (USD 153 billion), including the budget for Iraq's Kurdistan region. This came around three months after the government filed the draft budget, making it the largest in Iraqi history.
Topic:
Development, Oil, Budget, Domestic Politics, Public Spending, and Parliament
Political Geography:
Iraq, Middle East, and Kurdistan Region of Iraq (KRI)

6. Valuing Longer, Healthier Lives: Assessing the Productivity of Health Spending in South Korea

Author:
Karen Eggleston
Publication Date:
03-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
This research studies the link between medical spending and health outcomes in South Korea, providing evidence on the productivity of medical spending over recent decades. The author advocates for the Korean government to develop a “satellite account for health” to complement national income and product accounts. Current measures do not account for changing quality nor give providers any incentive for cost-effective substitution between forms of treatment for a given condition. By leveraging existing strengths of Korea’s National Health Insurance and health outcome data, Korea can develop an accurate measure of medical productivity and a more accurate measure of overall economic productivity, while becoming a global pioneer of “health satellite accounts” for overall populations. Such a productivity metric built on condition-specific net value can help Korea increase the “bang for the buck” from medical spending, mitigate wasteful spending, and promote high-value innovations for longer, healthier lives.
Topic:
Health, Public Spending, and Productivity
Political Geography:
Asia and South Korea

7. Environmental Protection and Climate Change Budgets of Metropolitan Municipalities

Author:
Nurhan Yentürk, Berkay Hacımustafa, Yakup Kadri Karabacak, Ezgi Ediboğlu Sakowsky, and Işık Baştuğ
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Turkish Economic and Social Studies Foundation (TESEV)
Abstract:
This study firstly aims to classify the environmental protection and climate change (EPCC) goals stated in the 2022 performance programs of the 14 metropolitan municipalities (MM) with the highest expenditures in Turkey and their affiliated institutions (AF) (water and sewerage departments and transportation administrations) according to mitigation, adaptation, waste, and other environmental goals and to examine the budget allocated to these targets. The study, also, evaluates the pros and cons of the budgets allocated by the 14 metropolitan municipalities to mitigation, adaptation, waste, and other goals and develops concrete policy recommendations for areas in which budgets should be increased/decreased.
Topic:
Climate Change, Environment, Governance, Crisis Management, Sustainability, Public Spending, and Municipalities
Political Geography:
Turkey, Middle East, and Mediterranean

8. Budget Brief: Pradhan Mantri Awaas Yojana – Gramin

Author:
Neeha Susan Jacob, Anwesha Mallick, and Avani Kapur
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) is Government of India’s (GoI’s) flagship ‘Housing for All’ scheme. The scheme aims to provide monetary assistance for the construction of a pucca house with basic amenities to all rural houseless families and those living in dilapidated and kutcha houses. Using government data, this brief reports on trends in: ■ Allocations and cost estimates; ■ Releases and expenditures; ■ Target completion and physical progress of house construction; and ■ Payments to eligible citizens.
Topic:
Budget, Housing, and Public Spending
Political Geography:
South Asia and India

9. Budget Brief: Jal Jeevan Mission (JJM)

Author:
Neeha Susan Jacob, Sidharth Santhosh, and Avani Kapur
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
Jal Jeevan Mission (JJM) is Government of India’s (GoI’s) rural drinking water programme to provide functional tap connections to every household for drinking, cooking, and other domestic needs on a sustainable basis by 2024. It subsumes the National Rural Drinking Water Programme (NRDWP). This brief uses government data to report on: ■ GoI allocations, releases, and expenditures; ■ Component-wise trends; ■ Progress on coverage; and ■ Paani Samitis for Operations and Maintenance (O and M).
Topic:
Water, Governance, Budget, Rural, Sustainability, and Public Spending
Political Geography:
South Asia and India

10. Budget Brief: Samagra Shiksha

Author:
Mridusmita Bordoloi, Avani Kapur, and Sidharth Santhosh
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Centre for Policy Research, India
Abstract:
Samagra Shiksha is Government of India’s (GoI’s) school education programme covering preprimary to higher-secondary levels. Launched in April 2018, the scheme is the primary vehicle to implement the provisions under the Right of Children to Free and Compulsory Education (RTE) Act, 2009, and the goals for school education envisaged under the National Education Policy (NEP), 2020. After a year of reopening of schools, post the COVID-19 pandemic, this brief uses government data to analyse Samagra Shiksha performance based on: ■ Trends in allocations, releases, and expenditures; ■ Component-wise approved budgets; ■ School enrolment trends pre and post COVID-19 pandemic; and ■ Learning outcomes and ICT infrastructure.
Topic:
Education, Governance, Budget, COVID-19, and Public Spending
Political Geography:
South Asia and India