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Global Dialogue 1: The Impact of the Global Economic Crisis on Subnational Finance - Brazil, India, Russia

December 17, 2008                                                                          

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                                     Watch a video of the discussion  

                                                        

Participants 

Summary

State and local governments around the world are facing significant declines in revenue as a result of financial and economic crisis. The first dialogue in this series explores how state and local governments in Brazil, Russia, and India are coping, and attempting to protect the poor and other disadvantaged groups from the negative consequences of this economic downturn.

This dialogue addressed the following questions:

The Impact of the Financial Crisis

• What is the projected impact on local economy: percent reduction in local GDP, retail sales, employment reduction in construction permits, business permits, and other relevant indicators?
• What is the projected impact on current revenues: percent reduction in total operating revenues, taxes, and transfers?
• What is the projected impact on access to credit: by local government, by small business?

The Response to the Financial Crisis

• How does your local government plan to deal with the revenue impacts:
  - By raising revenues – how? Higher tax effort, new taxes, borrowing?
  - By reducing expenditures (curtailing specific services): What criteria and what type of expenditures?
• How do you plan to deal with social policy fallout, for example, the impact on the poor and disadvantaged groups?
• How do you plan to provide stimulus for the local economy?
• What assistance is available from the regional and the national government
(if applicable)?
• Has there been a coordinated response to the crisis by municipal, regional, and national governments in your city or state?

 

Participants

Introduction
Roumeen Islam, Manager, World Bank Institute

Background and Context
George Peterson, Senior Fellow, Urban Institute, Washington, DC

Dialogue Presentations

Brazil
Mr. Aod Cunha de Moraes Junior,
Secretário da Fazenda do Estado Rio Grande do Sul
Secretaria da Fazenda (SEFAZ)
Porto Alegre, Rio Grande do Sul, Brazil

Mr. Cristiano Roberto Tatsch,
Secretário da Fazenda do Município de Porto Alegre/RS,
Porto Alegre Finance Secretariat
Porto Alegre, Rio Grande do Sul, Brazil

Russia
Mr. Alexander Filipenko,
Governor and Chairman of the Government of Khanty-Mansiysk Autonomous Region
Okrug-Yugra,
Khanty-Mansiysk, Russian Federeation

Mr. Yuri Roslyak,
First Deputy of the Mayor of Moscow City.
Government of Moscow City,
Moscow, Russian Federation

India
Sri. S.P.Singh, I.A.S
Commissioner & Special Officer & Ex-Officio Principal Secretary to Government,
Hyderabad, India

Open dialogue - Questions and Answers

Reflections
Professor Srinivas Chary Vedala, Director, Center for Energy, Environment, Urban . Governance, Infrastructure Development, Administrative Staff College, Hyderabad, India
Robert D. Ebel, Deputy Chief Financial Officer and Chief Economist
District of Columbia Government
George Peterson, Senior Fellow, Urban Institute, Washington, DC

Concluding Remarks by the chair




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