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Revisión Integral del Gasto Público en Costa Rica
El objetivo de este operación es mejorar la eficiencia y eficacia del gasto público en Costa Rica, con especial énfasis en la gestión del gasto social y de inversión. Las conclusiones y recomendaciones de política que surjan del PER servirán de base para la formulación de posibles operaciones de apoyo del Banco a la reforma del gasto público en el país.

Detalle del Proyecto

País

Costa Rica

Número de Proyecto

CR-T1027

Fecha de aprobación

Diciembre 6, 2006

Etapa del Proyecto

Cerrado

Tipo de Proyecto

Cooperación Técnica

Sector

REFORMA/MODERNIZACIÓN DEL ESTADO

Subsector

REFORMA/MODERNIZACIÓN DEL ESTADO

Instrumento de préstamo

-

Código del instrumento de préstamo

-

Modalidad

-

Tipo de establecimiento

-

Categoría de Impacto Ambiental y Social

-

Costo Total

USD 83,510.00

Financiamiento de Contrapartida del País

USD 0.00

Cantidad

USD 83,510.00

Información Financiera
Número de Operación Tipo de préstamo Moneda de Referencia Fecha del informe Fecha de Firma del Contrato Fondo Instrumento Financiero
ATN/KM-10142-CR SG USD - Dólar americano Markets and Governance for Poverty Reduc No Reembolsable
Número de Operación ATN/KM-10142-CR
  • Tipo de préstamo: SG
  • Moneda de Referencia: USD - Dólar americano
  • Fecha del informe:
  • Fecha de Firma del Contrato:
  • Fondo: Markets and Governance for Poverty Reduc
  • Instrumento Financiero: No Reembolsable
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Allocative Efficiency of Government Spending for Growth in Latin American Countries
There is scant empirical economic research regarding the way that Latin American governments efficiently allocate their spending across different functions to achieve higher growth. While most papers restrict their analysis to the size of government, much less is known about the composition of spending and its implications for long-term growth. This paper sheds light on how allocating expenditures to investment in quality human and physical capital, and avoiding waste on inefficient expenditures, enhance growth in Latin America. This paper uses a novel dataset on physical and human capital and detailed public spending that includes -for the first time- Latin American countries, which is categorized by a cross-classification that provides the breakdown of government expenditure, both, by economic and by functional heads. The database covers 42 countries of the OECD and LAC between 1985 and 2017. There are five main results. First, the estimated growth equations show significant positive effects of the factors of production on growth and plausible convergence rates (about 2 percent). The estimated effect of the physical investment rate is positive and significant with a long-run elasticity of 1.2. Second, while the addition of years of education as a proxy for human capital tends to have no effect on growth, the addition of a new variable that measures quality-adjusted years of schooling as a proxy for human capital turns out to have a positive and significant effect across all specifications with a long-run elasticity of 1.1. However, if public spending on education (excluding infrastructure spending) is added to the factor specification, growth is not affected. This is mainly because, once quality is considered, spending more on teacher salaries has no effect on student outcomes. Therefore, the key is to increase quality, not just school performance or education spending. Third, both physical and human capital are equally important for growth: the effect of increasing one standard deviation of physical capital or human capital statistically has the same impact on economic growth. Fourth, increasing public investment spending (holding public spending constant) is positive and significant for growth (a 1% increase in public investment would increase the long-term GDP per capita by about 0.3 percent), in addition to the effect of the private investment rate. However, the effect of public spending on payroll, pensions and subsidies does not contribute to economic growth. Fifth, the overall effect of the size of public spending on economic growth is negative in most specifications. An increase in the size of government by about 1 percentage point would decrease 4.1 percent the long-run GDP per capita, but the more effective the government is, the less harmful the size of government is for long-term growth.
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Inter-American Development Bank Quarterly Business Review: First Quarter 2022
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Options for a Reform of the Mexican Intergovernmental Transfer System in Light of International Experiences
This paper focuses on the design of intergovernmental transfers to reduce vertical and horizontal fiscal imbalances and improve the performance of subnational governments. It provides an overview of international experiences, especially of large federations, with a view to devising viable options for reform of the transfer system in Mexico. While there is no one-size-fits-all ideal model of design and implementation of intergovernmental transfer systems, this analysis points to some lessons that can inform reforms, including the need to view intergovernmental transfers as an integral part of the overall system of intergovernmental fiscal relations; the use of different types of intergovernmental transfers that are best suited to fulfill different objectives; and the incorporation of equalization schemes to address regional disparities. In the light of these experiences, we find that the current Mexican transfer system is too fragmented, is linked to volatile oil revenues, involves substantial discretion in the allocation of a significant portion of the transfers, and lacks sufficient equalizing power. This paper presents and discusses possible reform options and demonstrates that it is altogether possible to reduce transfer dependence to promote effort and fiscal responsibility; simplify the system to increase predictability and ease its administration; eliminate discretion to increase transparency and establish stronger subnational budget constraints; and improve fiscal equalization to promote equity in subnational service delivery. Careful consideration of political economy dynamics is given in the simulations of possible reforms, with a view to minimizing short-term gains and losses as well as political opposition.
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Colaboración y alianzas para la financiación de la lucha contra el cambio climático
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Extended Country Program Evaluation: Dominican Republic: 2013-2020
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