This Public Expenditure Review (PER) builds on the commitments of the 2003 Country Economic Memorandum (CEM), and 2002 Country Assistance Strategy (CAS) Progress Report, being its primary objective to assess strengths and weaknesses in key areas of public expenditure, and identify policy options for fiscal sustainability. Jamaica's high debt aggravates debt sustainability and efforts to improve growth. Revenue performance is also a weak element in the country's overall fiscal framework, while the current level of public sector investment is too low to support strong sustained growth.

The authors examine the impact of growth
of key policy and institutional reforms: macroeconomic
stabilization, trade liberalization, deregulation of
finance, privatization, deregulation of utilities,
modernization of the public sector with a view to increasing
its effectiveness and accountability, and the spread of
democracy and decentralization. They draw lessons both from
a policy and institutional perspective and from the

The 2005 Tanzania poverty and social impact analysis (PSIA) on local government tax reform was designed to examine the intended and unintended consequences on poverty reduction and growth in Tanzania of the tax reforms implemented in June 2003 and 2004. The main elements of the reform were the abolition of the flat rate development levy in 2003 along with nuisance taxes, and the abolition of business license fees for enterprises below a certain size and capping of those fees for larger enterprises in 2004.

The provision of public goods and the amelioration of market failure are the classical justifications for government intervention in the economy. In reality, (1) governments intervene in markets that are not affected by failure, and (2) a large share of the government resources is spent in private goods, not in public goods. In contrast to issue 1, issue 2 has received little attention in the literature, in spite of the potentially large efficiency and equity losses arising from misguided allocations of public expenditures.

In recent years, the countries of Europe
and Central Asia (ECA) have experienced a marked decline in
investments by international private operators/investors in
local infrastructure-much in line with the trend observed in
other emerging markets. This decline has been particularly
significant in the local water and energy sectors. In light
of the increasingly tight fiscal constraints faced by
governments across ECA, there is a strong need to develop

Afghanistan has come a long way since
emerging from major conflict in late 2001. Important
political milestones mandated by the Bonn Agreement (two
Loya Jirgas, a new Constitution, recently the Presidential
election) have been achieved. The economy has recovered
strongly, growing by nearly 50 percent cumulatively in the
last two years (not including drugs). Some three million
internally- and externally-displaced Afghans have returned

The conclusions of the recently-conducted Kenya Investment Climate Assessment (ICA), based on a survey of 368 firms, have a bearing on the country's growth agenda. The results have a bearing on the key issue of labor productivity and its implications on firm performance, revealing that capital-intensity in Kenya was relatively high, compared to the rest of Sub-Saharan Africa (SSA) and also to firms in China and India, but also relatively less productive.

This paper provides evidence consistent with elite capture of Social Fund investment projects in Ecuador. Exploiting a unique combination of data-sets on village-level income distributions, Social Fund project administration, and province level electoral results, the authors test a simple model of project choice when local political power is unequally distributed. In accordance with the predictions of the model, poorer villages are more likely to receive projects that provide excludable (private) goods to the poor, such as latrines.

Inequalities and development:
dysfunctions, traps, and transitions by Anthony J.
Bebbington, Anis A. Dani, Arjan de Haan, and Michael Walton.
Asset inequality and agricultural growth: how are patterns
of asset inequality established and reproduced? By Rachel
Sabates. Beneath the categories: power relations and
inequalities in Uganda by Joy M. Moncrieffe. Inequalities
within India's poorest regions: why do the same

This series "New Frontiers of
Social Policy" aims to promote social development
through systematic attention to the underlying social
context and the social outcomes of development interventions
and public policy. This book series has been conceived and
produced for the broader development community, rather than
for social policy specialists alone. This book is
particularly, although not exclusively, relevant to those

This paper provides the results of an
international survey of practitioners with experience in
facilitating the participation of African smallholder
farmers in supply chains for higher-value and/or
differentiated agricultural products. It explores their
perceptions about the constraints inhibiting and the impacts
associated with this supply chain participation. It also
examines their perceptions about the factors affecting the

The study on the sources of rural growth
in Burundi results from a meticulous work carried out by
eminent experts of the World Bank in response to a request
of the Government of Burundi. It describes the global
environment, which explains poverty aggravation and builds
proposals to overcome most binding constraints to growth in
Burundi. This study is an important contribution in the
fight against poverty, as it identifies ways to resume