Developing the Domestic Government Debt Market: From Diagnostics to Reform Implementation

by World Bank

Overview

Domestic government debt markets play a critical role in managing public debt effectively and reducing the vulnerability of developing countries to financial crises. Many aspects of debt markets—money, primary, and secondary markets; a diversified investor base; and sound securities custody and settlement systems and regulation—interact in complex ways and are affected by previous policies and developments. 'Developing the Domestic Government Debt Market: From Diagnostics to Reform Implementation' draws insights from a joint pilot program set up by the World Bank and International Monetary Fund to design relevant reform and capacity-building programs in twelve countries. The experiences of these geographically and economically diverse countries—Bulgaria, Colombia, Costa Rica, Croatia, Indonesia, Kenya, Lebanon, Nicaragua, Pakistan, Sri Lanka, Tunisia, and Zambia—illustrate the challenges, obstacles, and progress in applying principles of market development. 'Developing the Domestic Government Debt Market' will serve government officials contemplating or in the process of reforming their practices, providers of technical assistance, and practitioners working on building capacity in debt market development. Because effective development of debt markets is one key piece in sound public debt management, readers will also be interested in the companion volume, 'Managing Public Debt', published by The World Bank in February 2007, based on the same joint pilot program.

Product Details

ISBN-13:	9780821368749
Publisher:	World Bank Publications
Publication date:	04/23/2007
Pages:	104
Product dimensions:	5.90(w) x 8.49(h) x 0.30(d)

Table of Contents

Preface     vii
Executive Summary     ix
Introduction     1
Money Markets     7
Analysis and Preconditions     7
Current Situation in Pilot Countries     10
Action Plans and Reform Programs     13
Conclusions and Insights     17
Primary Markets     19
Analysis and Preconditions     20
Current Situation in Pilot Countries     23
Action Plans and Reform Programs     28
Conclusions and Insights     33
Investor Base     35
Analysis and Preconditions     36
Current Situation in Pilot Countries     38
Action Plans and Reform Programs     43
Conclusions and Insights     46
Secondary Markets     49
Analysis and Preconditions     50
Current Situation in Pilot Countries     54
Action Plans and Reform Programs     57
Conclusions and Insights     61
Custody and Settlement     63
Analysis and Preconditions     64
Current Situation in Pilot Countries     67
Action Plans and Reform Programs     71
Conclusions and Insights     73
DebtMarket Regulation     75
Analysis and Preconditions     75
Current Situation in Pilot Countries     78
Action Plans and Reform Programs     82
Conclusions and Insights     83
Complexity and Path Dependence     85
Complexity     87
Interaction and Path Dependence     90
Notes     93
References     97
Index     99