State-owned enterprises have long played a key role among governments as a tool to foster the development of certain industries or protecting certain strategic national interests. However, there is ample empirical evidence that such institutions may have been a source of substantial risks for their government owners, and that such risks have materialized in many cases, with … [Read more...] about How to manage fiscal risks from state-owned enterprises
“The flutter of a butterfly’s wings can cause a hurricane halfway around the world.” This simple phrase introducing chaos theory may also sum up the impact that Basel III capital regulations could have on available finance for public-private partnerships (PPPs). The new capital regulations being implemented under Basel III are part of efforts to strengthen the requirements … [Read more...] about Basel III and public-private partnerships: the butterfly effect
The Public Private Partnership (PPP) market in Brazil is extremely active and has played a central role in policymakers’ agendas for decades. In total, 773 projects have reached financial closure in the last 20 years in Brazil, according to the World Bank’s Private Participation in Infrastructure database. These projects represent about one fifth of all private investment in … [Read more...] about PPPs in Brazil: A solution to infrastructure needs or a problem for fiscal sustainability?
Investing in infrastructure is crucial to promote inclusive development in Latin America and the Caribbean. Such investments require enormous amounts of resources and that is why partnerships between public and private sectors are considered such an important tool for implementing public policies like infrastructure, especially in fiscal constraint scenarios. But in order to … [Read more...] about “Building blocks” to build successful public-private partnerships
For most countries in Latin America and the Caribbean (LAC) increasing growth and improving social equity are key objectives. To achieve these goals, it is essential to have, not only good governance and good public policies, but also efficient public management. The publication Government at a Glance Latin America and the Caribbean 2017 (available in both English and … [Read more...] about Government at a Glance: Latin America and the Caribbean 2017