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Fiscal Policy Design in Low-Income Countries

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  • Christopher S. Adam
  • David L. Bevan

Abstract

For many low-income countries, there has been an extended period in which fiscal policy was not a choice, or was a choice made by authorities external to the country. For a number of them, this situation is now changing. Their own success in stabilising the economy, coupled with a shift in the stance of the international community (most notably the IMF), has placed fiscal choices back on the domestic agenda. However, the scope for choice may be heavily circumscribed by the legacy of past fiscal laxity. There are two challenges to the domestic fiscal authority in these circumstances.

Suggested Citation

  • Christopher S. Adam & David L. Bevan, 2001. "Fiscal Policy Design in Low-Income Countries," WIDER Working Paper Series DP2001-67, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-67
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    References listed on IDEAS

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    1. Dambisa Moyo & David Stasavage, 1999. "Are cash budgets a cure for excess fiscal deficits (and at what cost)?," CSAE Working Paper Series 1999-11, Centre for the Study of African Economies, University of Oxford.
    2. Atish Ghosh & Steven Phillips, 1998. "Warning: Inflation May Be Harmful to Your Growth," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 672-710, December.
    3. David Stasavage and Dambisa Moyo, 1999. "Are cash budgets a cure for excess fiscal deficits (and at what cost)?," Economics Series Working Papers WPS/1999-11, University of Oxford, Department of Economics.
    4. Adrian Fozzard & Mick Foster, 2001. "Changing Approaches to Public Expenditure Management in Low-Income Aid Dependent Countries," WIDER Working Paper Series DP2001-107, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Ms. Catherine A Pattillo & Mr. Stephen A. O'Connell & Mr. Christopher S Adam & Mr. Edward F Buffie, 2004. "Exchange Rate Policy and the Management of Official and Private Capital Flows in Africa," IMF Working Papers 2004/216, International Monetary Fund.
    2. Ms. Annalisa Fedelino & Alina Kudina, 2003. "Fiscal Sustainability in African HIPC Countries: A Policy Dilemma?," IMF Working Papers 2003/187, International Monetary Fund.
    3. Mr. Benedict J. Clements & Mr. Sanjeev Gupta & Mr. Emanuele Baldacci & Mr. Carlos Mulas-Granados, 2002. "Expenditure Composition, Fiscal Adjustment, and Growth in Low-Income Countries," IMF Working Papers 2002/077, International Monetary Fund.
    4. AfDB AfDB, 2005. "Working Paper 80 - Making Public Sector Management Work for Africa: Back to the Drawing - Board," Working Paper Series 2214, African Development Bank.
    5. Buffie, Edward & Adam, Christopher & O'Connell, Stephen & Pattillo, Catherine, 2008. "Riding the wave: Monetary responses to aid surges in low-income countries," European Economic Review, Elsevier, vol. 52(8), pages 1378-1395, November.
    6. Peter S. Heller & Menachem Katz & Xavier Debrun & Theo Thomas & Taline Koranchelian & Isabell Adenauer, 2006. "Making Fiscal Space Happen!: Managing Fiscal Policy in a World of Scaled-Up Aid," WIDER Working Paper Series RP2006-125, World Institute for Development Economic Research (UNU-WIDER).
    7. Mascagni, Giulia & Moore, Mick & McCluskey, Rhiannon, 2014. "Tax Revenue Mobilistation In Developing Countries: Issues and Challenges," Working Papers 3948, Institute of Development Studies, International Centre for Tax and Development.
    8. Goran Hyden, 2005. "Working Paper 80 - Making Public Sector Management Work for Africa: Back to the Drawing - Board," Working Paper Series 215, African Development Bank.
    9. Matti Ylönen, 2017. "Policy diffusion within international organizations: A bottom-up analysis of International Monetary Fund tax work in Panama, Seychelles, and the Netherlands," WIDER Working Paper Series wp-2017-157, World Institute for Development Economic Research (UNU-WIDER).
    10. Baldacci, Emanuele & Hillman, Arye L. & Kojo, Naoko C., 2004. "Growth, governance, and fiscal policy transmission channels in low-income countries," European Journal of Political Economy, Elsevier, vol. 20(3), pages 517-549, September.
    11. Matti Ylönen, 2017. "Policy diffusion within international organizations: A bottom-up analysis of International Monetary Fund tax work in Panama, Seychelles, and the Netherlands," WIDER Working Paper Series 157, World Institute for Development Economic Research (UNU-WIDER).

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