By Antonio Estache
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Additional info for Decentralizing infrastructure: advantages and limitations, Parts 63-290
64 A Survey of Studies on the Effects of Decentralization on Total Public Expenditures 67 An Econometric Analysis of Total and Subnational Infrastructure Expenditures 68 Policy Conclusions 75 Data Appendix 76 Bibliography 79 5. Does Decentralization Improve Infrastructure Performance? Frannie Humplick And Antonio Estache 81 Methodology 82 The Impact of Decentralization on the Performance of Roads. 83 The Impact of Decentralization on the Performance of the Electricity Sector 88 The Impact of Decentralization on the Performance of the Water Supply 93 Summary of Findings and Policy Conclusions 95 References 97 6.
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Local revenue-raising ability is constrained by central regulations and local political Page 16 pressure and continuity of management is unlikely. Under these conditions, even if long-term private savings was available, local governments would likely remain shut out of the domestic capital market. For bond market model to function, both conditions must be addressed. To foster the mobilization of private long-term savings, several measures can be taken. First, monetary and fiscal policies can be better aimed toward achieving macroeconomic stability.