(3) significant fiscal expenses and investment and financing acts and

We must make a distinction between fiscal deficits related to current expenditures and investment spending.

Survey by country of the legal and fiscal environment specifically related to investment in microfinance

Fiscal Reports on the Observance of Standards and Codes in nine sub Saharan least developed countries16 also suggest progress in fiscal transparency, including the quality of budget formulation and investment in the fiscal reporting system.

The right balance today requires creating jobs partly through additional fiscal stimulus aimed at productive infrastructure investment.

So, how should the US economy s jobs deficit, investment deficit, and long run fiscal deficit be addressed?

In most countries, domestic savings contribute by far the larger part of the resources utilized for investment and are mainly mobilized through national fiscal and monetary policies, including equitable taxation and fiscal incentives.

This policy has led to the inclusion of private cultural investment among the priority investment sectors (development support sectors), which enjoy many fiscal and financial advantages under the new Single Investment Code (tax exemptions, grants, access to bank credit ...).

The first lever is budgetary Governments that enjoy fiscal space should spend on economically sound projects. Public investment is a complement to private investment if designed and targeted well, it can trigger more private investment, rather than crowding it out.

6. Notes the recognition by the World Bank and the International Monetary Fund of the need to pursue efforts to increase fiscal space for public infrastructure investment within limits of fiscal prudence and debt sustainability

The medium term fiscal objectives aim to enhance domestic resource mobilization for the social and poverty programmes and for investment in infrastructure.

Such conditions, together with fiscal incentives and financial market regulations, will help to mobilize savings, develop financial institutions and markets and encourage investment.

Fiscal Challenges and Fiscal Follies

In the context of the follow up work, a benchmarking tool (Investment Compass) for regulatory frameworks on investment and fiscal regimes, which can be used by policy makers, investment promotion bodies and other stakeholders for comparing the performance of countries in these areas, has been expanded.

LONDON Deficits are always bad, thunder fiscal hawks. Not so, replies strategic investment analyst H. Wood Brock in an interesting new book, The American Gridlock.

The debt overhang is having major adverse consequences for the fiscal health of African countries, and this may discourage domestic, foreign, public and private investment.

Painful choices about how to close the long run fiscal gap should be decided now and implemented promptly once the economy has recovered. But, for the next few years, the priorities of fiscal policy should be jobs, investment, and growth.

However, while financial stringency proved attractive to foreign investors, a tight monetary and fiscal stance did little to stimulate domestic investment or to improve export prospects.

Investment and saving rates likewise declined during this period and, despite cuts in effective demand and fiscal austerity, high rates of inflation generally persisted (table 1).

Without such structural reforms or returning fiscal surpluses to families through tax cuts and rebates, government investment based stimulus efforts can provide, at best, a short term economic boost. They cannot transform China s export and investment oriented political economic system.

If fiscal rebalancing is accomplished in part by cutting investment, medium and longer term growth will suffer, resulting in fewer employment opportunities for younger labor market entrants. Sustaining investment, on the other hand, has an immediate cost it means deferring consumption.

Both countries have massive surpluses of savings over investment and huge trade surpluses. Both parade their fiscal virtue and insist that deficit countries stop their irresponsible spending.

An updated medium term economic strategy is also under way that will incorporate debt management, fiscal policy, public sector investment and growth with equity as integral components.

All of the OECD countries promote outward FDI, primarily in three areas information and technical assistance financial support and fiscal incentives and investment insurance (see table 2).

Ideally, the reinvestment of profits, or the absorption of profits by fiscal measures and their utilization for financing development, should provide channels to bolster investment, incomes and savings.

Industry could be safely left in private hands, provided the state guaranteed enough spending power in the economy to maintain a full employment level of investment. This could be achieved by monetary and fiscal policy low interest rates and large state investment programs.

Without complementary structural reforms that encourage private investment and innovation and thus enable economies to adapt and compete in a global, technology driven economy a public investment program will have a disappointingly weak impact on growth. Instead, debt financed public investment will produce a short run stimulus, at the cost of longer term fiscal stability.

The second arrow entails a sharp increase in short term fiscal expenditure, especially investment in infrastructure projects. While those who, like me, adhere to the Mundell Fleming framework (according to which fiscal stimulus will be offset by the resulting increase in capital inflows, currency appreciation, and reduced export competitiveness) do not stress the impact of flexible fiscal policy, Keynesians take it very seriously.

Fiscal Follies

Fiscal Year

Fiscal yeara

What's fiscal ?

And here was the clincher By committing themselves to fiscal tightening, finance ministers gave themselves scope for some fiscal loosening. Proclaiming fiscal virtue enabled them to practice fiscal vice.

That is why a more expansionary fiscal stance is also vital, with Germany leading the way in deploying increased public investment to crowd in private investment and boost competitiveness. The IMF s recent World Economic Outlook describes the success of this approach in recessionary environments.

Unemployment has nearly doubled in Tunisia and Egypt, and foreign direct investment has dried up across the Arab world. Tourism revenues, while resilient, are declining, and fiscal challenges remain considerable.

Therefore, cancellation of half the debt of low income countries would translate into a 0.5 per cent increase in annual growth and fiscal space for increased public and private investment.

fiscal year 2000 2001 to the fiscal year 2002 2003 (table 5).

Under the circumstance that is lack of more sustainable investment growth to boost economic growth potential, current fiscal policy driven growth will be unsustainable, Economist Barclays indicated in a research report.

Attention switched to the problem of fiscal deficits and the relationship between deficits and economic growth. Should governments deliberately expand their deficits to offset the fall in household and investment demand?

To prevent the misuse of money, the European Commission should vet all national investment projects. More broadly, the program would be an important step toward establishing the eurozone s missing fiscal union.

In the US, the uneven and weak recovery has been sustained by extraordinarily expansive monetary policies and ongoing large fiscal deficits. While corporate coffers hold mountains of cash, private investment stagnates.

Europe s Fiscal Wormhole

America s Fiscal Isolationism

Fiscal Apocalypse Now

Germany s Fiscal Follies