High-quality public debt management plays a critical role in reducing the vulnerability of developing countries to financial crises. With sound risk and cash management, effective coordination with fiscal and monetary policy, good governance, and adequate institutional and staff capacity in place, governments can develop and implement effective medium-term debt management strategies. Managing Public Debt: From Diagnostics to Reform Implementation draws insights from a joint pilot program set up by the World Bank and International Monetary Fund to design relevant reform and capacity-building programs in twelve countries. The experiences of these geographically and economically diverse countries - Bulgaria, Colombia, Costa Rica, Croatia, Indonesia, Kenya, Lebanon, Nicaragua, Pakistan, Sri Lanka, Tunisia, and Zambia - illustrate the challenges and elements necessary to make progress in the area of public debt management. Managing Public Debt will serve government officials contemplating or in the process of reforming their practices, providers of technical assistance, and practitioners working on building capacity in public debt management. Because effective implementation of debt management strategies also requires a developed domestic government debt market, readers will also be interested in the companion volume, Developing the Domestic Government Debt Market, published by The World Bank in February 2007, based on the same joint pilot program.
Author(s): World Bank
Publisher: World Bank Publications
Year: 2007
Language: English
Pages: 140
CONTENTS......Page 7
Preface......Page 11
Executive Summary......Page 13
1 Introduction......Page 19
The Diagnostic Stage......Page 25
Designing Reforms......Page 28
Sustaining the Reform Process......Page 30
Implications for Providers of Assistance......Page 32
Future Work......Page 33
3 Debt Management Strategy and Risk Management......Page 35
3.1 Elements of a Debt Management Strategy......Page 37
Action Plans and Reform Experiences......Page 44
Conclusions and Insights......Page 50
4 Coordination between Debt Management, Fiscal Policy, Monetary Policy, and Cash Management......Page 53
Diagnostics in Pilot Countries......Page 54
Action Plans and Reform Experiences......Page 60
Conclusions and Insights......Page 63
5 Governance......Page 67
Debt Management Objectives and the Legal Framework......Page 68
Organizational Arrangements......Page 76
Accountability, Transparency, and Auditing......Page 82
Conclusions and Insights......Page 89
Staff Capacity......Page 93
Debt Management Systems......Page 100
Conclusions and Insights......Page 105
Appendix......Page 109
Notes......Page 119
References......Page 129
Index......Page 133
3.2 Indonesia's General Strategy in State Debt Management for 2005–09......Page 47
5.1 Rationale for a Consolidated Law on Public Debt Management: Colombia......Page 75
5.2 The Anglo Leasing Corruption Scandal in Kenya......Page 86
6.1 Capacity Building through the Macroeconomic and Financial Management Institute of Eastern and Southern Africa......Page 96
6.2 Building Debt Management Capacity in Kenya: Experience of the Swedish Agency for International Development Cooperation......Page 98
6.3 IT Reform Experience in Colombia......Page 106
3.1 Elements of a Debt Management Strategy......Page 36
5.1 Governance Structure and Accountability......Page 69
1.1 Key Indicators for 12 Pilot-Program Countries, year end 2005......Page 20
3.1 Debt Composition in the 12 Pilot-Program Countries......Page 39
3.2 Examples of Conflicting Debt Management Strategies for Subportfolios......Page 43
3.3 Bulgaria's Strategic Targets, 2003–06......Page 46
3.4 Changes in the Composition of External and Domestic Debt of Pilot-Program Countries......Page 49
4.1 Debt Levels and Debt Burdens in Pilot-Program Countries......Page 55
4.2 Central Bank's Decision-Making Authority for Domestic Debt Management......Page 57
5.1 Authorizations Required by Parliament and Other Institutions for External Borrowing......Page 73
5.2 Reporting Requirements Specified in the Legal Framework......Page 83
6.1 Debt-Recording Systems in Pilot-Program Countries......Page 101
A.1 Summary of Legislative Framework in Public Debt Management in the 12 Pilot Countries......Page 110
A.2 Distribution of Debt Management Functions......Page 114
