01439pab a2200181 454500 180718b1999 xxu||||| |||| 00| 0 eng d Smoke, Paul Improving local infrastructure finance in developing countries through grant-loan linkages: ideas from Indonesia's water sector 1999 p.1561-585 Nov-Dec In recent years, developing countries under fiscal pressure have increasing recognized significant weaknesses in their intergovernmental mechanisms for financing local infrastructure. Many countries are in the process of rationalizing poorly coordinated and subjectively allocated grant systems as well as loans. Such efforts, however, are typically undertaken independently of each other, often providing conflicting incentives for local fiscal behavior. I argue that the reform of grant and loan mechanisms should be explicitly linked to improve the overall effectiveness of the infrastructure finance system. The potential complications involved in designing grant-loan linkages, however, are considerable. I illustrate some key issues by examining the water sector in Indonesia, concluding with suggestions for how to think about creating such linkages in other sectors and countries. - Reproduced Revenue Public finance Local finance International Journal of Public Administration 42697 42697 42697 0 0 0 0 IIPA IIPA 2018-07-19 Volume no: 22, Issue no: 11-12 AR43082 2018-07-19 2018-07-19 AR