02383cas a2200265 a 4500 AALejournalIMF002054 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874761 1018-5941 BD-DhAAL BD-DhAAL Zhang, Ping. On National or Supranational Objectives : Improving the Effectiveness of Targeted Expenditure Programs / Ping Zhang, Eivind Tandberg, Ehtisham Ahmad. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Central governments or the international community at large are concerned about subnational service delivery. The design of targeted expenditure programs features frequently in central efforts to redistribute infrastructure and social spending or assure minimum standards. These programs are typically financed by the center, often with external assistance, but are implemented at the subnational level, which may not have incentives to spend the resources as intended by the center or donors. We discuss mechanisms for improving the effectiveness of targeted public expenditure programs, modeling the interaction between different levels of government as a dynamic game. An incentive structure could be designed that compelled local governments to truthfully reveal their ability to implement national programs in a cost-effective manner and to exert the effort required to maximize the expected benefits. The models have direct policy relevance in the Heavily Indebted Poor Countries (HIPCs), where donor-financed resources are used for poverty-reduction at the local level, or in large countries such as China, where there is an effort to redirect social and infrastructure spending to particular regions. Mode of access: Internet Ahmad, Ehtisham. Tandberg, Eivind. IMF Working Papers; Working Paper ; No. 2002/209 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/209/001.2002.issue-209-en.xml IMF e-Library