World Development Report 1997: The State in a Changing World

World Development Report 1997
......Page 1
Boxes......Page 7
OVERVIEW......Page 11
PART ONE RETHINKING THE STATE-THE WORLD OVER......Page 27
1 The Evolving Role of the State......Page 29
2 Refocusing on the Effectiveness of the State......Page 39
PART TWO MATCHING ROLE TO CAPABILITY......Page 49
3 Securing the Economic and Social Fundamentals......Page 51
4 Fostering Markets: Liberalization, Regulation, and Industrial Policy......Page 71
PART THREE REINVIGORATING INSTITUTIONAL CAPABILITY......Page 87
5 Building Institutions for a Capable Public Sector......Page 89
6 Restraining Arbitrary State Action and Corruption......Page 109
7 Bringing the State Closer to People......Page 120
8 Facilitating International Collective Action......Page 141
FART FOUR REMOVING OBSTACLES TO CHANGE......Page 153
9 The Challenge of Initiating and Sustaining Reforms......Page 154
10 The Agenda for Change......Page 167
Technical Note......Page 178
Bibliographical Note......Page 186
Appendix: Selected Indicators on Public Finance......Page 205
Selected World Development Indicators......Page 213
1 The pathway to a more effective state......Page 13
2 Credibility, investment, and growth......Page 15
3 The regional agenda......Page 24
1.1 State and government: Some concepts......Page 30
1.1 One world, many more states......Page 31
1.3 Evolution of the role of the state in India: The past fifty years......Page 34
1.4 The economic rationale for state intervention and some definitions......Page 36
2.1 Building the Internet: A contemporary example of fruitful public-private interaction......Page 41
2.2 Measuring the state-its size, its policies, and its institutional capability......Page 43
3.1 Weaknesses in fundamentals constrain firms the world over......Page 52
3.2 Standing up to crime in Cali, Colombia......Page 54
3.3 Contracting and the judicial system in Brazil......Page 56
3.4 International track records on fiscal deficits and inflation......Page 57
3.5 Commitment versus flexibility in the CFA zone......Page 62
3.6 Private provision of social services: A historical perspective......Page 64
3.7 The new Chilean unemployment insurance scheme......Page 68
3.8 Reducing poverty in Indonesia-how social assistance complements broad-based growth......Page 70
4.1 Mexico's deregulation czar......Page 73
4.2 Six objections to privatization-and how to address them......Page 74
4.2 The variety of regulatory experience......Page 77
4.4 Telecommunications regulation in Jamaica......Page 80
4.5 Environmental activism in Yokohama, Japan......Page 81
4.6 Japan's postwar big push in metals industries......Page 83
5.1 Laying bureaucratic foundations: The Northcote-Trevelyan reforms in the United Kingdom......Page 90
5.2 Australia's mechanisms for transparent, competitive, and results-oriented policymaking......Page 92
5.3 Most firms rate government services poorly, but some services score higher than others......Page 96
5.4 Vouchers and school choice......Page 99
5.5 Contracting with NGOs for better schooling in Bolivia......Page 100
5.6 Cultivating the best and the brightest: Mandarin versus open systems......Page 104
5.7 Building worker dedication: Good government in Brazil's Ceará State......Page 107
6.1 How popular participation improved property rights and dispute resolution in Peru......Page 111
6.2 Urban political machines in the United States and their reform......Page 115
6.3 Fighting corruption in Uganda......Page 116
6.4 Hong Kong's independent commission against corruption......Page 117
7.1 Public opinion and the state......Page 121
7.2 Managing multiethnic societies in Malaysia and Mauritius......Page 123
7.3 Does social capital matter?......Page 125
7.4 Client surveys to motivate service improvements in India, Uganda, and Nicaragua......Page 128
7.5 Does participation improve project performance?......Page 129
7.6 Pitfalls in intergovernmental relations: The experiences of Brazil and China......Page 135
7.7 Calculating fiscal equalization grants......Page 137
8.1 The World Trade Organization-an international mechanism for bringing credibility to national policy......Page 144
8.2 How international agricultural research benefits donors as well......Page 147
8.3 The challenges of global climate change for international cooperation......Page 148
8.4 Sharing the burden of environmental protection......Page 149
8.5 How large the global peace dividend?......Page 150
9.1 Weighing the political costs and benefits of reform......Page 156
9.2 The predatory state under the Duvalier dynasty in Haiti......Page 159
9.3 Reform under external threat: The Meiji restoration in Japan......Page 160
9.4 The Moncloa Pacts in Spain......Page 165
9.5 Venezuela's 1989 reform program and its reversal......Page 166
10.1 State collapse and beyond in Somalia......Page 169
10.2 The economic underpinnings of conflict: The case of Liberia......Page 170
Text Figures......Page 9
1 The state has grown everywhere......Page 12
2 A range of mechanisms can enhance state capability......Page 17
3 Factors associated with corruption......Page 18
4 Higher government employment often means lower government wages......Page 20
5 Countries with good economic policies and stronger institutional capability grow faster......Page 23
1.2 Governments the world over have expanded since 1960......Page 32
1.3 Transfers and interest payments have grown......Page 33
2.1 The state, institutions, and economic outcomes......Page 40
2.2 Good government helps explain the income gap between East Asia and Africa......Page 42
2.3 Reliable institutions make for credible states......Page 45
2.4 Perceived credibility and economic performance go hand in hand......Page 47
3.2 Negotiating with government officials can be arduous......Page 53
3.3 Countries are discovering the advantages of the value added tax......Page 58
3.4 Unlike Nigeria, Indonesia managed its recent oil windfall prudently......Page 59
3.5 Well-designed budgetary institutions help avoid large deficits......Page 61
3.6 In Vietnam, the benefits of hospital care are skewed toward the better-off......Page 63
3.7 The balance of private and public education differs enormously worldwide......Page 65
3.2 Implicit pension debt in selected countries......Page 67
3.9 Housing subsidies in developing countries mostly fail to reach the needy......Page 69
4.1 Bank crises are all too common and carry enormous fiscal cost......Page 78
5.1 Guinea's policy goals and spending allocations do not add up......Page 94
5.2 Decisionmaking in Ukraine is bogged down by overlapping responsibilities......Page 95
5.4 Three strategies for improving government service delivery......Page 97
5.5 Recruiting and promoting on merit improve bureaucratic capability......Page 102
5.6 Lack of meritocracy and poor pay in the Philippines' civil service have lowered capability......Page 103
5.7 In Africa, as public employment has risen, wages have fallen......Page 105
6.1 High and unpredictable corruption hurts investment......Page 113
6.2 Some factors associated with corruption......Page 114
7.1 The world has become much more democratic since 1980......Page 122
7.2 Organizations at the interface of state, markets, and civil society......Page 126
7.3 Vertical rules and horizontal incentives shape local government's capability......Page 133
8.1 Many countries are loosening restraints on international capital......Page 145
8.2 Refugees have been flooding Africa, Asia, and Europe......Page 151
8.3 Poor policies nullify the effect of aid......Page 152
9.2 Estimated efficiency gains from privatizing utilities in Argentina......Page 157
9.2 Multiple veto points help countries resist pressure to expand welfare......Page 158
Text Tables......Page 10
1.1 Functions of the state......Page 37
3.1 Social insurance, social assistance, and poverty-targeted programs in developing countries: Characteristics and lessons......Page 66
4. 1 Estimates of welfare gains from deregulation in the United States......Page 72
5.1 Mechanisms to improve service delivery......Page 98
7.1 Changes in subnational finance in selected countries......Page 131
7.2 Demand and supply characteristics of local and national public goods......Page 132
7.3 Possible tax and expenditure assignments by level of government......Page 138
7.4 Principles and best practices in grant design......Page 139
7.5 Matching decentralization strategy to government capacity......Page 140
9.1 Alignment of interest groups, political costs, and tactical sequencing of reform by reform type......Page 155
9.3 First- and second-generation reforms......Page 162
Tables......Page 215
Introduction to Selected World Development Indicators......Page 216
Key and Primary Data Documentation......Page 219
Table 1 Basic indicators......Page 224
Table 2 Macroeconomic indicators......Page 226
Table 3 External economic indicators......Page 228
Table 4 Population and labor force......Page 230
Table 5 Distribution of income or consumption......Page 232
Table 6 Health......Page 234
Table 7 Education......Page 236
Table 8 Commercial energy use......Page 238
Table 9 Land use and urbanization......Page 240
Table 10 Forest and water resources......Page 242
Table 11 Growth of the economy......Page 244
Table 12 Structure of the economy: production......Page 246
Table 13 Structure of the economy: demand......Page 248
Table 14 Central government budget......Page 250
Table 15 Exports and imports of merchandise......Page 252
Table 16 Balance of payments......Page 254
Table 17 External debt......Page 256
Table I a. Basic indicators for other economies......Page 258
Technical notes......Page 259
Data sources......Page 273
Classification of economies......Page 274