000			01439pab a2200181 454500
008			180718b1999 xxu||||| |||| 00| 0 eng d
100			_aSmoke, Paul
245			_aImproving local infrastructure finance in developing countries through grant-loan linkages: ideas from Indonesia's water sector
260			_c1999
300			_ap.1561-585
362			_aNov-Dec
520			_aIn 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
650			_aRevenue
650			_aPublic finance
650			_aLocal finance
773			_aInternational Journal of Public Administration
909			_a42697
999			_c42697 _d42697