Debt Relief and Governance Quality in Developing Countries

Significance The IMF insists that Greece’s debt must be made sustainable before it will again participate in programme financing. Yet IMF participation is required if the bailout plan is to proceed, German Finance Minister Wolfgang Schaeuble says; the Fund and the euro-area remain at odds over debt relief. Greece will need the next loan tranche by June to make debt repayments in July to private investors, the ECB, IMF and European Investment Bank. Impacts Germany, which faces federal elections this September, will accept no further debt relief until after the third bailout has concluded. The IMF is under pressure from developing countries to end its involvement in financing a first world EU member state. The package being finalised will probably not encounter any serious resistance from within the ruling Syriza party.

Evaluating Agricultural Extension and Advisory Services through a Governance Lens

Journal of International Agricultural and Extension Education ◽

10.5191/jiaee.2018.25206 ◽

2018 ◽

Vol 25 (2) ◽

pp. 71-86

Author(s):

Cristina Álvarez-Mingote ◽

Paul E. McNamara

Keyword(s):

Developing Countries ◽

Qualitative Analysis ◽

Agricultural Extension ◽

Potential Mechanism ◽

Extension Services ◽

Advisory Services ◽

Governance Quality

Demand-driven extension services have been promoted as a potential mechanism to improve governance quality and lead to better-served farmers. In this paper, we evaluate i) the extent to which demand-driven elements are present in extension services in developing countries, and ii) whether governance problems persist and why. We accomplish so by performing a qualitative analysis of the Modernizing Extension and Advisory Services (MEAS) country assessments, and find that, despite the adoption of demand-driven features, extension services are not fully participatory, transparent, accountable, equitable and responsive to needed farmers.

Credit Information Sharing and Loan Default in Developing Countries: The Moderating Effect of Banking Market Concentration and National Governance Quality

SSRN Electronic Journal ◽

10.2139/ssrn.2532406 ◽

2019 ◽

Author(s):

Samuel Fosu ◽

Albert Danso ◽

Henry Agyei-Boapeah ◽

Collins G. Ntim ◽

Emmanuel Adegbite

Keyword(s):

Developing Countries ◽

Information Sharing ◽

Market Concentration ◽

Moderating Effect ◽

Loan Default ◽

Banking Market ◽

Governance Quality

Does Water Governance Matter?

Water Economics and Policy ◽

10.1142/s2382624x17500023 ◽

2018 ◽

Vol 04 (03) ◽

pp. 1750002 ◽

Cited By ~ 2

Author(s):

Daniel W. Bromley ◽

Glen Anderson

Keyword(s):

Public Health ◽

Developing Countries ◽

Public Services ◽

Water Governance ◽

Per Capita Gdp ◽

Fiscal Effort ◽

Sanitation Services ◽

Diagnostic Models ◽

Governance Quality ◽

Per Capita

We develop a series of diagnostic models covering 82 of the world’s poorest countries over the period 1991–2015. Our purpose is to assess several important attributes of water governance in these developing countries. Specifically: (1) do water-related public services make important contributions to per capita GDP and general livelihood prospects? (2) what factors seem to explain the quite different national commitments to the provision of water-related public services? and (3) do observed variations in water-related public services provide evidence of governance quality? Our diagnostic models suggest that water-related public services indeed contribute to per capita GDP and to improved public health outcomes across these developing countries. We then derive a variable capturing fiscal effort in the provision of quasi-public services — the availability of improved water supply and sanitation services — controlling for variations in national ability to pay (per capita GDP). We call this commitment an index of instrumental governance. With this index of instrumental governance, we conclude that water governance offers an important measure of a proxy for the civic commitment of governments in the world’s poorest nations. We conclude that an important aspect of “governance” is captured by the extent to which governments make difficult financial commitments that will improve per capita GDP and general livelihood prospects of their citizens.

Credit information sharing and loan default in developing countries: the moderating effect of banking market concentration and national governance quality

Review of Quantitative Finance and Accounting ◽

10.1007/s11156-019-00836-1 ◽

2019 ◽

Vol 55 (1) ◽

pp. 55-103 ◽

Cited By ~ 2

Author(s):

Samuel Fosu ◽

Albert Danso ◽

Henry Agyei-Boapeah ◽

Collins G. Ntim ◽

Emmanuel Adegbite

Keyword(s):

Developing Countries ◽

Information Sharing ◽

Market Concentration ◽

Moderating Effect ◽

Loan Default ◽

Banking Market ◽

Governance Quality

Public governance quality and tax compliance behavior in developing countries

International Journal of Social Economics ◽

10.1108/ijse-11-2016-0338 ◽

2019 ◽

Vol 46 (3) ◽

pp. 338-351 ◽

Cited By ~ 1

Author(s):

Mohammed Abdullahi Umar ◽

Chek Derashid ◽

Idawati Ibrahim ◽

Zainol Bidin

Keyword(s):

Developing Countries ◽

Tax Compliance ◽

Socioeconomic Conditions ◽

Public Governance ◽

Socioeconomic Condition ◽

Content Type ◽

Compliance Behavior ◽

Governance Quality ◽

The Impact ◽

The Relationship

PurposeThe purpose of this paper is to explore the relationship between public governance quality and tax compliance behavior in developing countries in terms of what transpires between governments and citizens, leading the later to pay or to abstain from paying tax. The study argues that socioeconomic condition is a mediator in the relationship and explains how and why it is so.Design/methodology/approachThis study adopts the conceptual approach and connects the concepts through synthesis of literature and previous research findings.FindingsThe study concludes that socioeconomic condition mediates the relationship between public governance quality and tax compliance behavior in developing countries. Socioeconomic conditions appear to be a broader, clearer and more practical concept for measurement purpose than public goods/spending as currently understood in the literature.Research limitations/implicationsThe study is a conceptual effort, and there may a be need to undertake further empirical investigations. Developing countries vary in their socioeconomic conditions, and there is a need to acknowledge country-specific circumstances.Practical implicationsThe implication of the finding includes the need for further research on the concept of socioeconomic condition, and how and why it influences tax compliance behavior in developing countries. Stakeholders and governments should monitor the impact of policies and actions on the socioeconomic condition of citizens to ensure they are satisfied. Their dissatisfaction leads to the boycott of the tax system which adversely affects economic development.Originality/valueThis study makes an original contribution by exploring socioeconomic conditions as a mediator between public governance quality and tax compliance behavior in developing countries. It is a significant contribution that is capable of shifting the direction of tax compliance research in developing countries due to its practical realities.

The Effects of Financial Development and Governance Quality on Economic Growth: Evidence from Developed and Developing Countries

Studies of Applied Economics ◽

10.25115/eea.v40i1.6308 ◽

2021 ◽

Vol 40 (1) ◽

Author(s):

Assef Filfilan

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Financial Development ◽

Low Income ◽

Good Governance ◽

Principal Component ◽

Threshold Level ◽

Low Income Countries ◽

Domestic Credit ◽

Governance Quality

This paper investigates the effects of financial development on economic growth with especial emphasis on the role played by governance quality. An indicator of governance built from the Principal Component factor method (PCF) and which takes into account the simultaneous effects of political, institutional and economic governance, is used in mediating such relationship. The study is carried out using a two-step system dynamic GMM method for 93 developed and developing countries over the 1996–2018 period. The findings from the study revealed that the effects of financial development on economic growth various according to the nature of governance and the level of development of countries. Results show a non-significant effect of financial development on economic growth for low-income countries and a positively significant impact in middle and high-income ones. Estimations demonstrate also that good governance plays an important and significant role in mediating the finance-growth relationship. Finally, results demonstrate that there is a certain threshold level that countries must achieve to make government domestic credit to private sector favorable to economic growth.

Governance quality and public sector procurement of infrastructure projects in developing countries: evidence from Nigeria

Journal of Public Procurement ◽

10.1108/jopp-10-2019-0067 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Christian Asuquo ◽

Adeniran Lashinde ◽

Emmanuel Adu

Keyword(s):

Developing Countries ◽

Public Sector ◽

Public Expenditure ◽

National Bureau ◽

Public Infrastructure ◽

Content Type ◽

Debt Burden ◽

Public Resources ◽

Governance Quality ◽

The Impact

Purpose In developing countries, governance structures are reputed to be weak, and infrastructure procurement is largely achieved through public sector financing. This study aims to examine the impact of governance quality on public sector infrastructure procurement in Nigeria. Design/methodology/approach Data on public infrastructure expenditure (CAPEX), revenue (REV) and debt burden (DEBT) were sourced from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) for the period 2000–2017. In addition, the Corruption Perception Index (CPI) of Nigeria for the period was obtained from Transparency International. Data were analysed using Ordinary Least Square regression and Granger Causality Test. Findings Results indicate that CPI and DEBT have negative effects on public infrastructure procurement, whereas REV has a significant positive impact. The findings suggest that an increase in public sector corruption leads to increase in the share of public budget allocated to infrastructure procurement. Moreover, an increase in the amount allocated to debt burden lowers the share of public resources available for infrastructure procurement. Findings also show that revenue is a leading indicator of infrastructure procurement, and public expenditure for infrastructure procurement is leading cause of public sector corruption. Social implications In Nigeria, resources for financing infrastructure are scarce, and there have been reports of poor governance in infrastructure procurement. The establishment of a relationship between governance quality and infrastructure procurement will help in more efficient allocation of scarce public resources. Originality/value To resolve the governance-infrastructure question, the study established causal relationships between governance quality variables and public expenditure on infrastructure.