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Employing the Modern Monetary Theory (MMT), this paper examines the current Chinese fiscal system and highlights its three characteristics. First, fiscal revenues are centralized at the central government while expenditures are decentralized at the local governments; second, fiscal spending focuses on public investment but is insufficient in providing social safety net and public services; and third, indirect tax accounts for a great majority of tax revenues, leading to limited progressivity of the tax system. These limitations have constrained the effectiveness of China's fiscal policies and generated many perverse impacts. With the understanding that the central government has the monetary sovereignty and does not face financing constrained and that taxes are not to raise revenues for fiscal spending but to serve other purposes, the paper calls for fiscal reforms that realign fiscal resources and spending responsibilities between the central and local governments, increase fiscal spending on social security and public services, as well as broaden personal income tax to improve the distributive effect of taxation. [ABSTRACT FROM AUTHOR]

Against the background of deepening public finance reforms in China, this paper applies the time-varying parameter techniques to investigate the underlying structural variation in the systematic part of fiscal policy. Although the degree of activism of systematic fiscal policy to inflation is estimated to remain in a mostly stable regime, the findings reveal a trend towards a less systematic and predictable policy behaviour to output stabilization over the past few years. The dynamic relationship implies that the counter-cyclical policy capacity has been attenuated, and systematic fiscal policy becomes less effective at restraining uncertainties about the functioning of the economy. [ABSTRACT FROM AUTHOR]

Copyright of Cuadernos de Estudios del Siglo XVIII is the property of Instituto Feijoo de Estudios del Siglo XVIII (Universidad de Oviedo) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The importance of reforming expenditure, and in many cases, bringing down expenditure ratios is underpinned by the fact that in many countries, expenditure ratios pre-COVID were already close to or above what can be reasonably financed with taxes. 2 Public Spending at Record Levels Public expenditure ratios in advanced countries increased from 38.6% of GDP in 2019 to almost 47.8% in 2020 according to the IMF's April 2021 Fiscal Monitor. In the past, there has simply been no country that has been able to raise revenue of 55% of GDP or more in a sustainable manner, that some European countries would require if expenditure ratios were to remain near current levels. Keywords: public expenditure; public debt; fiscal reform; fiscal institutions EN public expenditure public debt fiscal reform fiscal institutions 63 71 9 09/26/22 20220601 NES 220601 1 Introduction The COVID 19 pandemic resulted in a major increase in fiscal imbalances and public spending. [Extracted from the article]

A close reading of two poetical sources provides new data on the reforms of the fiscal schedule of the Abbasid state in the ninth century. This paper reconstructs the calendrical complications in those Abbasid regions that followed Iranian administrative tradition and its solar calendar without intercalations. Two reforms were issued under al-Mutawakkil and al-Muʿtaḍid to correct the fiscal schedule of these regions. A panegyric by al-Buḥturī allows us to confirm and contextualize al-Mutawakkil's reform in the final years of his caliphate. A few verses by Ibn al-Muʿtazz give a significant description of the close connection between al-Muʿtaḍid's reform of the Iranian New-Year's day and the construction of his public figure. [ABSTRACT FROM AUTHOR]

Copyright of Studia Histórica: Historia Moderna is the property of Ediciones Universidad de Salamanca and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In the aftermath of Arab Spring, the Middle East (ME) by and large underwent various political upheavals. This change was palpable in some countries particularly where it resulted in a new political dispensation. However, in Kingdom of Saudi Arabia (KSA), the state opted to placate the antagonists by some economic concessions and social flexibility. Under the leadership of Muhammad bin Salman, the Crown Prince of KSA, the country is now following an approach of modernization which has two dimensions: first, moving towards social liberalization and secondly, initiating new sources of revenue and reducing dependence on oil revenue. Behind all initiatives, there is a long-term strategy to maintain loyalty of their people and enhance influence of KSA in the ME particularly. This article evaluates goals of Muhammad Bin Salman’s Vision or Saudi Vision 2030 and strategies which require substantial changes in social setup and developments to the Kingdom’s fiscal and budgetary measures and policies. This study reflects the political, religious, family and institutional challenges that can antagonize the Vision and its probability of accomplishment. While theorizing the study, it will be evaluated that a re-drawing of the ‘social contract’ in the Kingdom seems necessary. This means not only more effective strategic communication and consultation with the stakeholders, but also a greater focus on inclusive growth and social safety. [ABSTRACT FROM AUTHOR]

This article presents a theoretical and applied research on the application of the managerial phenomenon on the fiscal control processes. The purpose of the research was to present the involvement of management elements in the fiscal control activity. Achieving the goal was summarized from the objectives set by researchers on the synthesis and analysis of theoretical approaches to management functions, identifying the procedural elements characteristic of fiscal control with reference to managerial functions. At the same time, the primary information on the reform of the fiscal system and the emergence of the structure responsible for fiscal control within the STS were presented and analysed. Statistics were presented on the number of annual controls and their typology as an argument for the representative aspect and compatible with the managerial approach. The approach of the fiscal control under managerial aspect argued and represented schematically allowed the achievement of the pursued objectives and the finalization of the study with substantiated conclusions. The realization of the fiscal control process through the prism of the managerial functions will allow the efficiency of the process itself and the achievement of the performance in the decisional process as a result of its finality. [ABSTRACT FROM AUTHOR]

China's reform on central-local fiscal reform has slowed down in recent years. The appointment of a new finance minister experienced in local government affairs is expected to renew the reform affirmed by the Chinese Communist Party (CCP) congress in late 2017. China has unprecedentedly identified a comprehensive list of 81 national basic public services as entitlements. Eighteen of them are subject to national and local standards, and co-financed by central and local governments. A new cost-sharing method for 10 of these services classifies sub-national jurisdictions into five tiers, in which the central government's share declines from 80% to 10%. These measures, effective in 2019, aim at creating a 'harmonious and moderately prosperous society'. [ABSTRACT FROM AUTHOR]

This article outlines the current state of affairs in fossil fuel subsidy reform, and highlights its contribution at the nexus of climate policy, fiscal stability and sustainable development. It discusses common definitions, provides quantitative estimates, and presents the evidence for key arguments in favour of subsidy reform. The main drivers and barriers for reform are also discussed, including the role of (low) oil prices and political economy challenges. Commitments to subsidy reform by the international community are reviewed, as well as the progress at the country level. Although fossil fuel subsidy reform indeed plays a critical role in climate policy, experience shows that the rationale for such reforms is determined in a complex environment of political economy challenges, macro-economic, fiscal and social factors, as well as external drivers such as energy prices. The article synthesizes the key principles for designing effective reforms and emphasizes that subsidy reforms cannot only yield fiscal relief, but should also contribute to long-term sustainable development objectives. Areas for future research are also identified. [ABSTRACT FROM AUTHOR]

The South Korean government has been reforming its public expenditure management system since 2004. During this time, South Korea adopted new budgeting processes (for example mid-term expenditure framework, top-down budgeting, performance-based budgeting) and developed a new integrated financial information management system. In the course of implementing these reforms, South Korea has important insights and lessons to share with developing countries. South Korea may have valuable lessons for developing countries that want to create an advanced financial information system. Developing countries often use the World Bank and the IMF's ODA (official development assistance) to build an IFMIS. However, South Korea's second-generation DBAS is an alternative to consider and pilot. Governments adopting the South Korean model can specify particular subsets of IFMIS modules that fit their particular needs and budget systems, and a fully functioning adaptation can be assembled quickly and effectively. [ABSTRACT FROM AUTHOR]

Copyright of Secuencia: Revista de Historia y Ciencias Sociales is the property of Instituto de Investigaciones - Dr. Jose M. Luis Mora and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The fiscal rules' framework is presented in a simple and logical manner, considering the reasons for their implementation from different perspectives. Thoughtfully analysing the specific literature, the importance of an appropriate design for fiscal rules is underlined, and the arguments for rule compliance are identified. The current situation of fiscal rules practice and application is mentioned and analysed. [ABSTRACT FROM AUTHOR]

Does industry today have the potential to go truly green, or does economic progress invariably come at the expense of environmental degradation? Based on examples taken from around the world, this article outlines both the conceptual justification and the empirical evidence behind the viability of the green industry concept. In addition, concrete recommendations are put forward which are seen as enabling the realization of a green industry. [ABSTRACT FROM AUTHOR]

Do crises really lead to more institutional reforms? This paper explores the connection between financial crises and one type of reform frequently advocated during the recent global financial crisis, namely, fiscal institutional reforms. Some authors expect that crises lead to reforms, but we demonstrate that the relationship is not so straightforward. Using a data set of Latin American countries that experienced several crises and also several periods of reform in the period from 1990 to 2005, we find that the type of crisis and its duration matter. We argue that reforms are less likely during a banking crisis, whereas fiscal crises are most likely to lead to fiscal reforms. This means that the type of economic crisis is important for explaining the likelihood of reforms. We explore other possible explanations for reform, such as the partisanship of the president and whether a country is under an IMF program, and do not find confirming evidence for alternative explanations. [ABSTRACT FROM AUTHOR]

The EU multilevel governance is a theoretical standpoint that allows us to measure the costs of nowadays European integration. This article addresses current issues of the EU institutional Agenda regarding the logic beyond the changing nature of the economic climate. Our contribution aims to analyze the impact of economic and financial reforms upon the institutional framework of the European Union. In this article we will explore how the post crisis economic agenda is being forged and which are the consequences of following different integration paths. It is also important to determine if a working scenario build around the Community method will address pressing issues in a successful manner or will the intergovernmental standpoint prevail? Is this crisis close to a positive response, is the EU economic governance an endangered construction, or can it be the rise of a great opportunity for the European integration process, a new boost each member state seeks and might nurture?. [ABSTRACT FROM AUTHOR]

Despite a large number of empirical studies on the flypaper effect, it remains disputed whether the effect exists and to what extent it is asymmetrical. The flypaper effect suggests that intergovernmental grants tend to result in higher increases in public expenditures than a similar increase in citizens’ private income would have led to. An asymmetrical effect exists when the fiscal response differs depending on whether grants are increased or decreased. By considering political institutions that moderate the effect of intergovernmental grants, this article offers a theoretical explanation that accounts for the mixed empirical evidence. The local response to intergovernmental grants is tested using a reform of the Danish intergovernmental grant scheme in 2007. In line with the expectation, the article finds a strong asymmetrical effect, but more surprisingly, this effect is found both when subnational budget institutions are centralised and when they are fragmented. [ABSTRACT FROM PUBLISHER]

This article analises the public expenditure in Romania, particularly the national priorities and the necessity of paying attention on the public finance resources for a better stimulation of the economic activities. [ABSTRACT FROM AUTHOR]

Amid global economic uncertainty and tumbling world oil prices, Indonesia's economy faces pressure on its external balance and a continued growth slowdown. The government of President Joko Widodo (widely known as Jokowi) has set an agenda of reform, including simpler, faster investment licensing, historic cuts to fuel subsidies to generate fiscal savings, and increased spending on infrastructure. On the political side, Jokowi has had to deal with several political issues coming not only from parties in opposition but also from parties supporting his government, including during the formation of the new cabinet. We examine the consequences so far of the government's policy initiatives and of the policymaking process. While some initiatives have been implemented with success, some seem to have been launched without enough preparation, consultation, or empirical evidence, and many have been poorly communicated. Although inflation accelerated after the November fuel-price rise, efforts have been made to contain inflationary expectations and to mitigate the effects on poverty through social-assistance programs. The government took steps to cushion the impending impacts of higher fuel prices on vulnerable households by giving cash handouts of Rp 200,000 per month to 15.5 million disadvantaged families who receive the lowest level of welfare, and by promoting publicly funded education and health care. The partial removal of gasoline subsidies and the introduction of a fixed-subsidy policy for diesel in the revised 2015 budget reduce uncertainty about the fiscal position, although increases in government spending in infrastructure development were announced at the same time. The revised budget for 2015 increases spending on infrastructure development by 63% from the 2014 budget, mostly on projects to improve connectivity on land and at sea—such as the development of toll roads, railways, and ports—and to increase the performance of the agricultural sector. However, the recent drop in international oil prices forced the government to increase its target for tax revenue by 30% on last year's target, raising concerns about the effect of falling oil prices on the economy. Trade and investment policy reform is important in unlocking Indonesia's growth potential and improving the country's current external balance. Jokowi's administration, however, has been sending mixed signals about its position towards more open policies. The country has yet to recommence several trade negotiations that were postponed in 2014 and is still struggling to meet its commitments under the ASEAN Economic Community. Although improvement in investment procedures and licensing is currently underway, Indonesia needs to adopt a more positive attitude if it is to attract more investment. [ABSTRACT FROM AUTHOR]

This paper investigates investment trends into village-level irrigation projects and assesses the impact of fiscal reforms including the tax-for-fee reform and the elimination of agricultural tax on irrigation investment. The China Water Institutions and Management Panel Survey data show that village leaders, water user associations, farmers, and upper level governments have all contributed to irrigation investment in villages throughout the study period between 1996 and 2007. Both descriptive and multivariate analyses suggest that changes brought by fiscal reforms have significantly reduced village collectives' capacity to fund irrigation infrastructure in villages. There was a significant drop in upper level government investment during the posttax-for-fee period (2002-2004 in the sample areas). Since 2005, upper level government has increased its investment to prereform levels and partly filled the public investment void in irrigation infrastructure. Fiscal reforms had the least impact on farmers' investment, which has been the most stable source of funding for village-level irrigation projects. [ABSTRACT FROM AUTHOR]

Outgoing Indonesian president Susilo Bambang Yudhoyono's second-term record is creditable, measured against the targets he set himself in 2010, but deficient in key areas: economic reform, infrastructure investment, and anti-corruption. Indonesia's 2009–14 parliament has been active in economic policymaking, and will leave as its legacy a raft of protectionist legislation. Both presidential candidates, Joko ‘Jokowi’ Widodo and Prabowo Subianto, have appealed to nationalism in their campaigns, calling for Indonesia to assert its sovereignty and increase its self-sufficiency, but Jokowi's economic platform is more moderate and economically literate than Prabowo's. The incoming president will inherit an economy that continues to slow. Growth is now not expected to approach 6% until 2015 at the earliest. Having engineered a reduction in the current account deficit, Indonesian policymakers now face the more difficult problem of structural fiscal adjustment. Energy subsidies are the most immediate problem, but fiscal reform more generally will emerge as an overriding and unpleasant imperative for whoever wins the presidential election on 9 July. Unless difficult fiscal policy measures are taken, Indonesia will face major trade-offs between deficit control and investment in social programs and economic infrastructure. The new president will struggle to restrict the deficit to the cap of 3% of GDP: a balanced budget will likely not be feasible for several years. He will need to increase the ratio of revenue to GDP and eliminate fuel subsidies—through a more systematic approach than the infrequent price increases of the past. He will need to choose carefully between competing expenditure priorities, such as infrastructure and defence. The new president would also be well advised to tread cautiously in implementing the legal mandates he will inherit, and to work with parliament to avoid further and unwind current earmarking of public expenditure. [ABSTRACT FROM AUTHOR]

This paper utilizes a panel data set on two major fiscal reforms in China-the fiscal contract system (FCS) in 1980-93 and the tax-sharing system (TSS) after 1994-to examine how the various aspects of intergovernmental fiscal arrangement affect the ability of the fiscal system to facilitate risk sharing. The high revenue decentralization and the proliferation of extrabudgetary revenue items in the FCS generally weakened the central government's ability to support interprovincial risk sharing. This situation was reversed in the TSS period. In addition, the effect of central-to-local transfer (transfer-in) and local-to-central transfer (transfer-out) on risk sharing was asymmetric in the sense that transfer-out enhances risk sharing but transfer-in does not. [ABSTRACT FROM AUTHOR]

During the late 19th and early 20th centuries, Denmark was an important overseas example in the United Kingdom's intertwined debates over free trade and agricultural modernization. Both countries remained open to foreign agricultural imports even as many other European states protected their farmers. But whilst British and Irish agriculture struggled, Denmark became a hugely successful exporter of dairy and pork. This achievement of rural prosperity under a liberal trade regime had obvious relevance to the future of agriculture in Britain, and particularly Ireland. Agricultural reformers in the two islands used the Danish example to show that technical education and co-operative production would allow farmers to profit even under free trade, whilst for British Liberals, ideologically committed to free trade, Denmark demonstrated that imported foodstuffs were actually a prerequisite for a flourishing rural economy. Several prominent Danish free traders personally intervened in the early 20th-century debate over tariff reform to affirm these very points. However, British and Irish protectionists contested the ‘free trade’ character of Denmark's fiscal policy. The article situates the Danish comparison within a broader Anglo-Scandinavian transnationalism, in which the themes of modernity and liberalism reside to the fore. [ABSTRACT FROM PUBLISHER]

China is said to be one of the world's most economically decentralized countries. While the claim that economic as well as fiscal decentralization had much to do with the success of China's reforms is controversial and it has been argued that China's approach to administrative decentralization might over time threaten the success of the reform process, the highly remarkable extent of fiscal decentralization could have the potential to aid the effort at poverty alleviation, especially in the context of the ethno-regional dimension of the country's poverty problem, and reduce the extent of social stratification and enhance stability. This paper analyses the various issues related to fiscal reform and fiscal decentralization in China in the context of the country's 12th Five-Year Plan and explores the Plan's implications for poverty alleviation and the overcoming of stratification. [ABSTRACT FROM AUTHOR]

This article critically interrogates the principle claims of the ‘new constitutionalist’ thesis, particularly as applied to the evaluation of European monetary union (EMU). In doing so, it argues for the (continuing) efficacy of the euro as a vector for social democratic advance both at the EU and global levels. It is argued that new constitutionalism's exclusive focus on the internal and external ‘neoliberal’ constraints EMU imposes on social democracy is overdrawn. The article critically examines the internal and external dimension of EMU's alleged ‘self-limitation’. Drawing on evidence from the recent eurozone crises as well as the SGP crisis of the early to mid-2000s, it is argued that EMU's internal self-limitation has been consistently subject to successful challenge and reform through a process of ‘permanent renegotiation’. This has played out in the context of ongoing tension within EMU between alternative models of integration and decision-making. In terms of the external dimension, the article focuses on the euro's structural power and the potential this provides for global leverage. It is argued that new constitutionalism exaggerates American dominance in the global monetary domain, deflecting attention from fundamental changes in the structure and politics of international money that have contributed to the diffusion of power in a new conjuncture marked by policy conflict, contestation and uncertainty. The ‘presence’ of euro is one such structural change. Este artículo interroga críticamente el punto principal de la tesis de los ‘nuevos constitucionalistas,’ particularmente como se aplica a la evaluación de la Unión Monetaria Europea (UEM, por su sigla en inglés). Al hacer esto, argumenta por la (continua) eficacia del euro, como un vector para el avance social democrático, tanto a nivel de la Unión Europea como global. Sostiene que el enfoque exclusivo del nuevo constitucionalismo en el ‘neoliberalismo’ interno y externo y las restricciones que la Unión monetaria europea impone a la democracia social, son una exageración. El artículo examina críticamente la dimensión interna y externa de la UEM como una supuesta ‘autolimitación.’  Partiendo de la evidencia tanto de la reciente crisis de la zona del euro, como de la crisis del SGP del principio a mediados de la década del 2000, propone que la autolimitación interna de la UEM ha estado consistentemente sujeta al reto y la reforma, a través de un proceso de ‘renegociación permanente’. Esto se materializó en el contexto de la tensión en curso dentro de la UEM entre modelos alternativos de integración y la toma de decisiones. En términos de la dimensión externa, el artículo se enfoca en el poder estructural del euro y el potencial que esto provee para el apalancamiento global. Se sostiene que el nuevo constitucionalismo exagera el domino americano en el dominio monetario, desviando la  atención a los cambios fundamentales en las estructuras y políticas de la moneda internacional, que ha contribuido a la difusión del poder en una coyuntura marcada por el conflicto político, la disputa y la incertidumbre. La ‘presencia’ del euro es uno de los grandes cambios estructurales. 本文批判性地质问“新立宪主义者”的观点，尤其是当运用于欧洲货币联盟改革评价时。在此情况下，它论证了在欧盟及全球层次上都作为一种社会民主主义发展矢量的欧元的持续性效力。本文认为，新立宪主义对欧洲货币联盟施加于社会民主主义的内部和外部的“新自由主义”约束所给予的独有关注被夸大了。文章批判性地考察了欧洲货币联盟所谓“自我限制”的内部和外部维度。以最近欧元区的危机以及世纪之初稳定与增长公约的危机为据，本文提出欧洲货币联盟的内部自我限制一直受到“长久再协商”进程中的成功改革与挑战。这在欧洲货币联盟内一体化与决策的可选模式之间当前的紧张背景下已经走到头。在外部维度上，本文关注欧元区的结构性实力以及为全球影响力做准备的潜在实力。本文认为，新立宪主义夸大了全球货币领域的美国支配地位，从而忽视了在一个以政策冲突、论争和不确定性为标志的紧要关头，对权力扩散产生了促进作用的国际货币结构与政治的根本性变革。欧元的“存在”就是这样一种结构变革。 이 논문은 ‘신입헌주의자(new constitutionalist)’ 명제의 주요 주장을 유럽통화연합(EMU)에 대한 평가에 적용하여 신입헌주의 명제를 비판적으로 검토한다. 그것을 통하여 이 논문은 EU 수준과 글로벌 수준에서 사회민주주의적 진보의 뱡항으로서 유로화의 효과를 주장한다. 새로운 입헌주의가 배타적으로 사회민주주의에 유럽통화연합이 가하는 내부적, 외부적 신자유주의 제약에 대해서 초점을 맞추는 것은 과도하다는 것을 주장한다. 이 논문은 자기제약으로 일컬어지는 유럽통화연합의 내적, 외적 차원을 비판적으로 검토한다. 최근 유로존의 위기와 2000년대 초중반 SGP의 위기를 다루면서 영구적인 재교섭 과정을 통하여 지속적으로 성공적인 도전과 개혁을 이루어 냈다는 점을 주장한다. 이것은 유럽통화연합 내에서 여러 대안적인 통합과 의사결정과정들 간의 계속되는 긴장이라는 맥락 속에서 이루어졌다. 이 논문은 외적인 차원에서 글로벌 리버리지에 제공하는 유로화의 구조적인 힘과 잠재성에 초점을 맞춘다. 이 논문은 새로운 입헌주의가 정책갈등, 대립과 불확실로 특징지어지는 새로운 국면에서 힘의 분산에 기여하는 국제화폐의 구조와 정치의 근본 변화에 대한 관심을 왜곡하여 세계 화폐영역에서 미국의 지배력을 과장하고 있다는 점을 주장한다. [ABSTRACT FROM PUBLISHER]

After a serious fiscal and financial crisis erupted in 1920 to 1921 (in the wake of the termination of World War I), the new American Governor General to the Philippines, U.S. Army Major General Leonard Wood, promised in his inaugural address to privatize the country's government-owned and controlled corporations such as the Philippine National Bank and the Manila Railroad Company, among others. Wood's neoliberal agenda in the Philippines was opposed by Filipino politicians in the executive and legislative departments from the start. This key policy disagreement climaxed in the resignation en masse of Governor Wood's Filipino cabinet and the members of the executivelegislative Council of State in 1923. The particulars of the Cabinet Crisis of 1923 --the so-called Conley Affair-- however, obscured from plain sight the true gravity of the broader conflict (i.e., Filipino opposition to Wood's agenda). Moreover, the general perception that Governor Wood's asset privatization program was successfully blocked by the Cabinet Crisis of 1923 is inaccurate. In truth, Wood was stymied by adverse international and national market conditions from 1921 to 1923. A further delay occurred from 1924 to 1926 when Governor Wood endeavored to get the Council of State and the Filipino Legislature's Board of Control (an oversight committee) on board his neoliberal agenda; he failed to get the support of the Filipino leaders in this regard. When Wood finally decided in 1926 to take unilateral steps, he was tied up by litigation (locally and in the United States) arising from his actions until his death from an unsuccessful brain surgery in 1927. [ABSTRACT FROM AUTHOR]

For more than two years, the most used expression in relation with the European Union refers to the imminent monetary disintegration. Such a scenario is not realistic at all, because it does not take into account the economic interdependencies existing between the member countries of the monetary zone. This paper aims at showing that despite the fact that the European Monetary Union has started as a sub-optimal monetary area, it will not disintegrate, but rather force the reform towards fiscal unification. We also highlight the fact that the latest mechanisms chosen to ensure budgetary stability are only temporary solutions compared with the complex European Unions issues: high debts, fiscal policy, competitiveness, growth and others. [ABSTRACT FROM AUTHOR]

This paper estimates the pattern of consumer expenditures in Iran in an attempt to measure the welfare cost of price subsidies in that country and shed light on possible fiscal reforms. We use the Quadratic Almost Ideal Demand System (Banks et al. (1997)) as our framework for estimation. We show that the general equilibrium fiscal interaction effects play a crucial role in determining the amount the government saves by eliminating the price subsidy of a particular good. Interestingly, eliminating price subsidies on utilities saves the government little by way of revenues and is welfare reducing. Comparing the gains for non-marginal with marginal reforms a la Ahmad and Stern (1984), we also show that the two approaches may not necessarily recommend the same reform. [ABSTRACT FROM AUTHOR]

I offer a simple framework to address why state intervention in the financial system, prevalent in less developed economies, yields various welfare outcomes, and why such conventional reforms as privatization and fiscal reforms prove insufficient to eliminate state intervention. In the model three institutional factors are in play: 1) control rights over financial institutions; 2) cash-flow rights of the private over financial institutions; 3) monitoring capability of the public on tax/resource collection by the state. Based on the model, I show that state intervention can be developmental or derogatory depending on institutional traits including degree of privatization and monitoring capability of the public over the tax collection by the state. Further I illustrate that as long as state has control rights, conventional reforms such as fiscal reform and privatization may not be enough in eliminating state intervention in the financial system. [ABSTRACT FROM AUTHOR]

Many observers contend that fiscal deprivation of the centre in reform China is detrimental to the overall capacity of the Chinese state, and thus the danger of national disintegration cannot be discarded. One relevant concern here is the obligation of the state to redress socio-economic dislocations, of which growing regional inequality is a major issue. The Tax Sharing Scheme introduced in 1994 represents the most colossal effort to redress the centre-local imbalance. The analysis of the patterns of income and expenditure of county finance between 1993 and 2002, however, highlights the many facets of state capacity and reiterates the possibility of state involvement amidst an improved fiscal position. The success in extractive capacity in this case does not guarantee parallel improvement in the central government's redistributive capacity. Analysis of local expenditure patterns shows that the growing support of the centre simply fails to reverse the declining level of local services in areas that may be targeted as key for poverty alleviation and equalization. The danger of the simple reading of the rise in extractive capacity attributed to the 1994 reform as a symptom of a strong central state is evident. [ABSTRACT FROM AUTHOR]

This paper traces salient aspects of the evolution of fiscal policy in sub-Saharan Africa since 1960 and highlights the need for further reforms to consolidate the gains of the recent past. The fiscal position of the sub-Saharan African region as a whole has improved markedly during the past ten years, but most countries still face formidable fiscal challenges. To consolidate the progress made during the past decade and to tackle the remaining problems, sub-Saharan African policymakers should remain firmly committed to sound fiscal policies. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Studies / Estudios Mexicanos is the property of University of California Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)