Module description
The responsible management of public finances is one of the cornerstone conditions to facilitate sustained growth, equitable distribution and long term investment of resources in developing countries. In a globalised economy, the management of public finances has become an area of increased technical expertise, because it requires knowledge of complex issues such as the administration of foreign direct investments, external aid from donors and cooperation agencies, debt management, tax policy and tax administration, and the allocation and distribution of government spending. These issues have inherently political implications, as they generate redistributive consequences, create long term winners and losers, and have a direct influence on development outcomes. The ensuing political transactions are reflected in the structure of a country’s budgetary process, in the bargaining of different tax regimes and in the choice of government spending and saving instruments. In this light, a comprehensive understanding of PFM and reforms in Latin America has to reconcile the knowledge about technical constraints with the political coalitions that make reforms sustainable in the long run.
This module aims to introduce students to the technical and political dimensions of public finance management in a) the generation of revenues, b) the budget process, and c) government spending; and to introduce students the most relevant debates of the specialised literature and discuss policy implications of reforms using Latin American case studies.
Assessment details
Presentation (10%) and 4,000 word essay (90%)
Teaching pattern
10 x 2 hour workshops