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Public spending and outcomes : does governance matter?, Volume 1
Author:Rajkumar, Andrew Sunil; Swaroop, Vinaya; Date Stored:2002/05/30
Document Date:2002/05/31Document Type:Policy Research Working Paper
SubTopics:Governance Indicators; National Governance; Health Systems Development & Reform; Health Monitoring & Evaluation; Health Economics & Finance; Public Health Promotion; Public Sector Economics; DecentralizationLanguage:English
Major Sector:Public Administration, Law, and JusticeReport Number:WPS2840
Sub Sectors:Public Financial ManagementCollection Title:Polcy, Research working paper series ; no. WPS 2840
Volume No:1  

Summary: The authors examine the role of governance-measured by level of corruption and quality of bureaucracy-and ask how it affects the relationship between public spending and outcomes. Their main innovation is to see if differences in efficacy of public spending can be explained by quality of governance. The authors find that public health spending lowers child and infant mortality rates in countries with good governance. The results also indicate that as countries improve their governance, public spending on primary education becomes effective in increasing primary education attainment. These findings have important implications for enhancing the development effectiveness of public spending. The lessons are particularly relevant for developing countries, where public spending on education and health is relatively low, and the state of governance is often poor.

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