Working Papers | G-24

Financing for Development

Political Economy of Tax Reform for SDGs

20th August 2017 Abstract

Emerging market economies need tax reform packages not just for the revenues to finance budgetary spending, but also to create a level playing field in an increasingly interconnected world, to address incentives for firms to locate in clean "hubs", and to meet distributional objectives. Often, however, such practices accord special preferences to achieve these objectives and, when failing to meet them, create vested interests that block further reforms. The paper outlines the lessons learned from the Chinese reforms in 1993/4 and 2016 -critical to rebalancing for sustainable development. Also, the Mexican reforms of 2013 illustrate how combinations of taxes and non-standard approaches to administration can overcome long-standing opposition to reforms. We conclude by examining the options being developed in research programs for sub-national and local taxation that are critical for local service delivery, access to credit, for involving the private sector, and achieving sustainable and inclusive development.

Public Investment for Sustainable Development

12th September 2017 Abstract

The SDGs have reignited interest in investment, particularly in public infrastructure. International financial institutions (IFIs), such as the IMF and World Bank, have issued sensible new "good practice" guidelines. While most are non-controversial, we argue that they are not sufficient to ensure sustainable development. In this paper, the first of two papers that focus on the investment cycle, we address questions on "what" to invest in and "where". We focus on Chile, which meets most of the recommended criteria and is appropriately held up as an example of efficient and transparent management of investment. But, over two decades the economy has become less "complex" and reliant on primary exports with limited utilization of its enormous potential. It suffers also from spatial disparities, inequality, and congestion and pollution in the metropolitan areas. We show how a system of economy-wide shadow prices linked to a sustainable growth strategy, and the creation of new "clean" hubs can help. Although national connectivity is critical, local investments in infrastructure and public services are also critical in making the "hubs" attractive for private investors and sustained employment generation.

Contracting Arrangements and PPPs for Sustainable Development

27th September 2017 Abstract

This paper extends a discussion of the investment cycle in another G-24 paper (Ahmad, 2017), in which the questions concerning "what" to invest in and "where" are addressed. This paper examines the "how" of investment for sustainable development, focusing on options for contracting arrangements, such as PPPs, that would help to involve the private sector, manage risks in the presence of asymmetric information, as well as uncertainty about climate change. It also addresses the strengthening of national and local institutions and the possible role of international financial institutions. In discussing the investment options, the paper also updates an earlier G-24 review of the empirical and theoretical literature on involving the private sector involvement in public investments (Ahmad, Bhattacharya, Vinella, and Xiao, G-24 2015).

Infrastructure Finance in the Developing World

The Infrastructure Finance in the Developing World Working Paper Series is a joint research effort by the Global Green Growth Institute and the G-24 that explores the challenges and opportunities for scaling up infrastructure finance in emerging markets and developing countries. Each paper addresses a unique piece of the infrastructure finance puzzle and provides critical analysis that will give impetus to international discourse and play a catalytic role in the creation and success of new development finance institutions. The papers have been authored by top experts in their respective fields, and the process has been carefully guided by the leadership of both organizations. This work has important implications in the post-2015 environment, given the essential role infrastructure must play in achieving sustainable development. To this end, GGGI and the G-24 look forward to further development and operationalization of the contents of these papers.

Multilateral Lending Instruments for Infrastructure Financing

5th June 2015 Abstract

Challenges and Opportunities for Multilateral Development Banks in 21st Century Infrastructure Finance

5th June 2015 Abstract

National Development Banks and Infrastructure Provision: A Comparative Study of Brazil, China, and South Africa

5th June 2015 Abstract

Involving the Private Sector and Public-Private Partnerships in Financing Investments: Public Opportunities and Challenges

5th June 2015 Abstract

Public Finance Underpinnings for Infrastructure Financing in Developing Countries

5th June 2015 Abstract

The Infrastructure Pipeline and the Need for Robust Project Preparation

5th June 2015 Abstract

Private Finance for Infrastructure Investments: Analysis and Implications for New Multilateral Development Banks

5th June 2015 Abstract

Green Infrastructure: Definition and Needs

5th June 2015 Abstract

Assessing the Changing Infrastructure Needs in Emerging Markets and Developing Countries (forthcoming)

5th June 2015 Abstract

Stemming the Tide of De-Risking

Stemming the Tide of De-Risking through Innovative Technologies and Partnerships

16th August 2016 Abstract