With decentralization and urbanization, the debts of state and local governments and of quasi-public agencies have grown in importance. Borrowing enables immediate benefits while distributing costs equitably across multiple generations, but carries the risks of free-riding by localities, burdening of future generations, and even insolvency. And the pressures on subnational finance are likely to continue — from the fragility of global recovery, the potentially higher cost of capital, refinancing risks, and sovereign risks.
Written by leading practitioners and experts in public finance in the context of multilevel government systems, Until Debt Do Us Partexamines the interaction of markets, regulators, subnational borrowers, creditors, national governments and taxpayers in the context of national political realities. It includes reforms that have not been covered by previous literature, such as those of China, Colombia, France, Hungary, Mexico, and South Africa, and presents a comprehensive review of how the United States developed its debt market for state and local governments.
This book is essential reading for anyone wanting to know the challenges and reform options in debt restructuring, insolvency frameworks, and public debt market development.
Download the book:
PDF version available for download
Or its chapters:
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- “Brazil: The Subnational Debt Restructuring of the 1990s — Origins, Conditions, and Results” by Alvaro Manoel, Sol Garson, and Monica Mora
- “Restructuring of Legacy Debt for Financing Rural Schools in China” by Lili Liu and Baoyun Qiao
- “Managing State Debt and Ensuring Solvency: The Indian Experience” by C. Rangarajan and Abha Prasad
- “Subnational Debt Management in Mexico: A Tale of Two Crises” by Ernesto Revilla
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- “Colombia: Subnational Insolvency Framework” by Azul del Villar, Lili Liu, Edgardo Mosqueira, Juan Pedro Schmid, and Steven B. Webb
- “France’s Subnational Insolvency Framework” by Lili Liu, Norbert Gaillard, and Michael Waibel
- “Hungary: Subnational Insolvency Framework” by Charles Jókay
- “United States: Chapter 9 Municipal Bankruptcy — Utilization, Avoidance, and Impact” by Michael De Angelis and Xiaowei Tian
- “When Subnational Debt Issuers Default: The Case of the Washington Public Power Supply System” by James Leigland and Lili Liu
- “Transition from Direct Central Government Onlending to Subnational Market Access in China” by Lili Liu and Baoyun Qiao
- “The Philippines: Recent Developments in the Subnational Government Debt Markets” by Lili Liu, Gilberto Llanto, and John Petersen
- “Russian Federation: Development of Public Finances and Subnational Debt Markets” by Galina Kurlyandskaya
- “South Africa: Leveraging Private Financing for Infrastructure” by Kenneth Brown, Tebogo Motsoane, and Lili Liu
- “Caveat Creditor: State Systems of Local Government Borrowing in the United States” by Lili Liu, Xiaowei Tian, and John Joseph Wallis
- Contents, Acknowledgments, About the Editors and Contributors, Abbreviations
- Index