WorldCat Identities

Devarajan, Shantayanan 1954-

Works: 222 works in 626 publications in 1 language and 7,016 library holdings
Genres: Conference papers and proceedings 
Roles: Author, Editor, Honoree, Opponent, Other, 958
Publication Timeline
Most widely held works by Shantayanan Devarajan
Aid and reform in Africa : lessons from ten case studies( Book )

24 editions published between 2000 and 2002 in English and held by 536 WorldCat member libraries worldwide

"While foreign aid is productive in countries with good policies, the Bank's landmark study, Assessing Aid, found that on average there was no discernible link between aid and reform. An in-depth examination of the relationship between aid and reform in ten African countries, this book reveals a much more complex picture. Aid can be beneficial or harmful to policy reform - or it can have little effect. Policy reform is almost never triggered by aid. It is mostly triggered by a crisis. In some cases, aid can retard reform by giving bad governments "breathing room." However, once the reform process is under way, the experiences of Ghana and Uganda show that foreign aid can be useful in galvanizing support for reform within the government. Finally, when the country enters the second generation of reforms, such as public sector institutional reform, short-term, conditionality-based aid can once again be harmful - by reducing ownership, participation, and sustainability of the reform process."--BOOK JACKET
Making services work for poor people by World Bank( Book )

8 editions published between 2003 and 2004 in English and held by 350 WorldCat member libraries worldwide

"The World Development Report (WDR) 2004 builds an analytical, and practical framework for using resources, whether internal or external, more effectively by making services work for poor people. The focus is on those services that have the most direct link with human development - education, health, water, sanitation, and electricity. This presents an enormous challenge, because making services work for the poor involves changing, not only service delivery arrangements, but also public sector institutions, and how foreign aid is transferred. This WDR explores the many dimensions of poverty, through outcomes of service delivery for poor people, and stipulates affordable access to services is low - especially for poor people - in addition to a wide range of failures in quality. The public responsibility is highlighted, addressing the need for more public spending, and technical adjustments, based on incentives and understanding what, and why services need to be improved. Thus, through an analytical framework, it is suggested the complexity of accountability must be established, as well as instruments for reforming institutions to improve services, illustrated through various case studies, both in developing, and developed countries. The report further outlines that scaling up reforms means sectoral reforms must be linked to ongoing, or nascent public sector reforms, in areas such as budget management, decentralization, and public administration reform, stimulated through information as a catalyst for change, and as an input to prod the success of other reforms."--World Bank description
World Bank Economists' Forum by World Bank (Pakistan)( Book )

27 editions published between 1990 and 2002 in English and held by 254 WorldCat member libraries worldwide

This volume evaluates some of the key dimensions of human development and growth. It provides eight exceptional papers from the second World Bank Economists' Forum held in May 2001 in Washington, DC. These papers were selected from among the 46 papers presented at the Forum. Many of those selected concentrate on the issues surrounding "empowerment." The focus is upon ensuring that poor people have the education, health care, social protection, and other mechanisms necessary for them to participate in economic growth and social development
Taxing bads by taxing goods : pollution control with presumptive charges by Gunnar S Eskeland( Book )

19 editions published between 1995 and 1996 in English and held by 156 WorldCat member libraries worldwide

Oil revenues and economic policy in Cameroon : results from a computable general equilibrium model by Nancy C Benjamin( Book )

9 editions published in 1985 in English and held by 120 WorldCat member libraries worldwide

Aid dependence reconsidered by Jean-Paul Azam( Book )

16 editions published in 1999 in English and Undetermined and held by 97 WorldCat member libraries worldwide

When foreign aid undermines institutions, countries can become aid-dependent, even if donors and recipients have the best intentions
Reviving project appraisal at the World Bank by Shantayanan Devarajan( Book )

10 editions published between 1995 and 1999 in English and Undetermined and held by 77 WorldCat member libraries worldwide

The authors focus on two broad questions: 1) what is the proper role for project evaluation in today's world, where countries have reduced major economic distortions and are reconsidering the role of the state? and 2) besides project evaluation, how else can economic analysis ensure high-quality projects? The authors argue for a shift in the emphasis of project evaluation away from a concern with precise rate of return calculations to a broader examination of the rationale for public provision. In this context, three areas critical for proper project appraisal are the counterfactual private sector supply response, the fiscal impact, and the fungibility of lending. (1) Counterfactual private sector supply response. Any type of cost-benefit analysis - be it in the public or the private sector - requires the project evaluator to specify the counterfactual: what would the world have looked like in the absence of the project? Since World Bank projects are public sector projects, the relevant counterfactual involves assessing what the private sector would have otherwise provided, and the relevant magnitude for evaluation purposes is the net contribution of the public project. Failure to consider explicitly the private sector counterfactual during evaluation biases the lending mix of the Bank away from projects with strong public good characteristics toward projects with private good characteristics. (2) Fiscal impact. Applying the private sector couterfactual would lead the Bank to undertake projects with a reasonable case for public intervention, such as basic infrastructure, primary education, and rural health. These projects typically share the characteristics that costs are borne by the public sector while benefits are enjoyed by the private sector. But in the absence of nondistortionary, lump sum taxes, there is likely to be a positive marginal cost of taxation and a premium on public income. Since the Bank has not used such a premium and treats public costs and private benefits equally, it has systematically overestimated the net benefits of these projects. (3) Fungibility of lending. Project-specific appraisal can at best assess only the rate of return and the acceptability of the project being appraised. This limitation is problematic because the project might have been undertaken even without Bank financing. If that is the case, the Bank is actually financing some other project - one not subject to appraisal by the Bank - that would not have been in the investment program without Bank financing. This problem arises because financial resources are fungible to some extent. One way to alleviate this concern is to conduct public expenditure reviews before embarking on the appraisal and financing of specific projects. Furthermore, financing a portion of the government's sectoral investment program may be more effective than project-specific lending
What does aid to Africa finance? by Shantayanan Devarajan( )

11 editions published in 1999 in English and Undetermined and held by 76 WorldCat member libraries worldwide

March 1999 The development community seems to have swung from a denial that aid is fungible to a belief that all aid is fungible. The facts seem to indicate that aid to Africa is partly fungible. Donors should therefore be concerned about the quality of public spending programs in recipient countries. If a donor gives aid for a project that the recipient government would have undertaken anyway, the aid finances expenditures other than the intended project. The notion that aid in this sense may be fungible has recently received empirical support. Devarajan, Rajkumar, and Swaroop look at why aid is fungible or nonfungible, and the extent to which it is fungible in Sub-Saharan Africa. Their results suggest that aid may be partially fungible in Africa and suggest some reasons. They find relatively little evidence that aid leads to greater tax relief in Africa. Every dollar of aid leads to a 90-cent increase in government spending. The implications of this result are by no means clear. If the marginal cost of taxation is exceptionally high-which it might be in African countries-using aid for tax relief may be the best use of foreign resources. Aid's effect on the composition of current and capital spending? They increase equally. Even if all aid were intended to finance capital spending, the reallocation to current spending might not necessarily be harmful. The fungibility of loans to specific sectors generally mirrors patterns found in a broader sample of countries. Aid to energy, transport, and communication sectors increases public spending in those sectors somewhat but by no means one for one. (By contrast, in the worldwide sample, aid to transport and communications was almost fully non-fungible.) Aid to the education sector-which had no discernible effect on education spending in the global sample-had an almost one-for-one effect on education spending in Africa. Even in these partially fungible sectors, governments spend more out of aid resources than they do out of their own resources, at the margin. Governments do not spend all sectoral aid in that sector-nor do they treat such aid as merely budgetary support. The more donors to a country, the more likely aid is to be fungible. If the number of donors represents a proxy for monitoring costs, it is not surprising that most aid is partly fungible. This paper-a product of Public Economics, Development Research Group-is part of a larger effort in the group to study the effects of aid as public expenditure. Shantayanan Devarajan may be contacted at
Do the benefits of fixed exchange rates outweigh their costs? : the Franc zone in Africa by Shantayanan Devarajan( Book )

22 editions published in 1991 in English and held by 71 WorldCat member libraries worldwide

We develop a simple formal framework to clarify the trade-offs involved in the choice between a fixed and flexible exchange-rate system. We then apply the framework to the CFA Zone countries in Africa, which have maintained a fixed parity with the French Franc since independence. Thanks to the predominance of a few agricultural products and natural resources in their exports, CFA member countries have suffered frequent shocks in their terms of trade. A flexible exchange rate could have possibly alleviated the costs of these external shocks. On the other hand, CFA member countries have managed to maintain lower inflation levels than their neighbors. Our framework provides a way of weighing these costs and benefits. The inflation differential between CFA and non-CFA African countries has been around 14 percentage points. We attribute this differential to the standard time-consistency problem inherent in discretionary macroeconomic policy. Nonetheless, our highly stylized calculations suggest that fixed exchange rates have been, on the whole, a bad bargain for the CFA member countries. Under reasonable output-inflation tradeoffs, the output costs of maintaining a fixed exchange rate have outweighed the benefits of lower inflation
The implications of foreign aid fungibility for development assistance by Shantayanan Devarajan( )

13 editions published between 1998 and 1999 in English and Undetermined and held by 71 WorldCat member libraries worldwide

December 1998 To address the fungibility of foreign aid funds, a proposed new lending instrument-a public expenditure reform loan-would tie an institution's lending strategy to the recipient country's achieving mutually agreed-upon development goals. A foreign aid or foreign lending policy that focuses exclusively on project financing may have unintended consequences, report Devarajan and Swaroop. New research shows that aid intended for crucial social and economic sectors often merely substitutes for spending that recipient governments would have undertaken anyway and the funds that are thereby freed up are spent for other purposes. If the aid funds something that would have been done anyway, traditional ways of evaluating the aid's effectiveness are not really accurate. If aid funds are fungible and the recipient's public spending program is unsatisfactory, project lending may not be cost-effective. If the recipient's public spending program is satisfactory, perhaps the donor should finance a portion of it instead of financing individual projects. One solution to the problem of fungibility, then, is that donors could tie assistance to an overall public spending program (in the recipient country) that provides adequate resources to crucial sectors. To make this kind of reform operational, Devarajan and Swaroop propose a new lending instrument: a public expenditure reform loan (PERL). A PERL would tie an institution's lending strategy to the recipient country's achievement of mutually agreed-upon development goals. Everyone agrees that better donor coordination is needed, but it has been difficult to achieve because some donors tend to prefer projects (usually with the national flag flying over them). By agreeing on a public expenditure program and financing a portion of it, the Bank can credibly ask other donors to do the same. This paper-a joint product of the Development Research Group and the Poverty Reduction and Economic Management Network-is part of a larger effort in the Bank to understand better the development impact of aid. The authors may be contacted at or
Quantifying the Fiscal Effects of Trade Reform by Shantayanan Devarajan( )

12 editions published in 1999 in English and Undetermined and held by 69 WorldCat member libraries worldwide

Group to develop and apply tools to analyze fiscal reform. The authors may be contacted at,
Goals for development history, prospects, and costs by Shantayanan Devarajan( )

10 editions published between 2002 and 2013 in English and Undetermined and held by 66 WorldCat member libraries worldwide

The Millennium Development Goals set quantitative targets for poverty reduction and improvements in health, education, gender equality, the environment, and other aspects of human welfare. At existing rates of progress many countries will fall short of these goals. However, if developing countries take steps to improve their policies and increased financial resources are made available, significant additional progress toward the goals is possible. The suthors provide a preliminary estimate of the additional financial resources which would be required if countries would work vigorously toward meeting the Millennium Development Goals. Two estimates of the resource gap are developed, one by estimating the additional resources necessary to increase economic growth so as to reduce income poverty, the other by estimating the cost of meeting specific goals in health, education, and the environment. Both estimates yield a figure in the range of $40-$70 billion in additional assistance per year, which is in line with estimates from other international development agencies and which would roughly represent a doubling of official aid flows over 2000 levels. While the authors believe this is a reasonable first approximation of the costs associated with achieving the Millennium Development Goals, it should be interpreted with caution for several reasons, including the lack of empirical data in many countries to estimate the relationship between expenditures on health or education and related outcomes, or the relationship between investment and growth, the sensitivity of the results to changes in the policy environment (both at the macroeconomic and sector level, and with respect to international trade), and opportunities for increased-and more efficient-domestic resource mobilization
The combined incidence of taxes and public expenditures in the Philippines by Shantayanan Devarajan( Book )

9 editions published between 1995 and 1999 in English and held by 38 WorldCat member libraries worldwide

November 1995 In the Philippines, the combined effect of taxation and spending policies is progressive, because the incidence pattern of spending is progressive while that of taxation is neutral. Indirect taxes, the main source of government revenue, are only slightly regressive. Although the poor consume taxed goods such as energy directly, the rich consume them indirectly by purchasing goods whose production requires energy and other taxed goods. Incidence studies of fiscal policy in developing countries typically examine either the distribution of tax burdens or the incidence of public expenditures. But the central issue for policymakers is the combined or net incidence of fiscal activities. Even if a tax is regressive, the impact of increasing it may not be, if the revenue raised is spent in a progressive manner. But even if the beneficiaries of public spending are the poor, the net effect may not be pro-poor, if the spending is financed by a highly regressive tax. One reason that combined incidence studies are so rare: they require detailed data on both taxation and public spending. Most analysts consider themselves lucky if they have data on either. Devarajan and Hossain show that the net incidence of fiscal policy in a country with average data -- the Philippines -- can be estimated using a variety of data sources and tools, using simplifying assumptions. For 20 years, the Philippine economy has experienced a series of balance of payments crises triggered by fiscal crises. It has had an unsatisfactory record of poverty alleviation. As the government tries to maintain fiscal discipline by raising taxes and cutting spending, how will poverty be affected? Devarajan and Hossain examine net fiscal incidence to find out. Their findings: * The incidence pattern of taxes is basically neutral. Contrary to expectations, indirect taxes are only slightly regressive. The poor consume taxed goods such as energy directly, but the rich consume them indirectly by purchasing goods the production of which requires energy and other taxed goods. * It is the pattern of expenditures that drives the combined incidence, which is progressive. This paper -- a product of the Public Economics Division, Policy Research Department -- is a revised version of Chapter 15 of the World Bank report, The Philippines: An Opening for Sustained Growth
Aid, growth and real exchange rate dynamics by Shantayanan Devarajan( )

5 editions published between 2008 and 2012 in English and held by 36 WorldCat member libraries worldwide

Devarajan, Go, Page, Robinson, and Thierfelder argued that if aid is about the future and recipients are able to plan consumption and investment decisions optimally over time, then the potential problem of an aid-induced appreciation of the real exchange rate (Dutch disease) does not occur. In their paper, "Aid, Growth and Real Exchange Rate Dynamics," this key result is derived without requiring extreme assumptions or additional productivity story. The economic framework is a standard neoclassical growth model, based on the familiar Salter-Swan characterization of an open economy, with full dynamic savings and investment decisions. It does require that the model is fully dynamic in both savings and investment decisions. An important assumption is that aid should be predictable for intertemporal smoothing to take place. If aid volatility forces recipients to be constrained and myopic, Dutch disease problems become an issue
Is investment in Africa too low or too high? by Shantayanan Devarajan( Book )

11 editions published between 1999 and 2001 in English and held by 35 WorldCat member libraries worldwide

Many analysts decry the level of investment in Africa, saying it is too low. But there is no evidence, in cross-country data or in microeconomic data from Tanzania, that private and public capital is productive in Africa. In that sense, investment in Africa may be viewed as too high
The long-run economic costs of AIDS : theory and an application to South Africa by Clive Bell( Book )

12 editions published between 2003 and 2006 in English and held by 33 WorldCat member libraries worldwide

Most existing estimates of the macroeconomic costs of AIDS, as measured by the reduction in the growth rate of gross domestic product, are modest. For Africa--the continent where the epidemic has hit the hardest--they range between 0.3 and 1.5 percent annually. The reason is that these estimates are based on an underlying assumption that the main effect of increased mortality is to relieve pressure on existing land and physical capital so that output per head is little affected. Bell, Devarajan, and Gersbach argue that this emphasis is misplaced and that, with a more plausible view of how the economy functions over the long run, the economic costs of AIDS are almost certain to be much higher. Not only does AIDS destroy existing human capital, but by killing mostly young adults, it also weakens the mechanism through which knowledge and abilities are transmitted from one generation to the next. The children of AIDS victims will be left without one or both parents to love, raise, and educate them. The model yields the following results. In the absence of AIDS, the counterfactual benchmark, there is modest growth, with universal and complete education attained within three generations. But if nothing is done to combat the epidemic, a complete economic collapse will occur within three generations. With optimal spending on combating the disease, and if there is pooling, growth is maintained, albeit at a somewhat slower rate than in the benchmark case in the absence of AIDS. If pooling breaks down and is replaced by nuclear families, growth will be slower still. Indeed, if school attendance subsidies are not possible, growth will be distinctly sluggish. In all three cases, the additional fiscal burden of intervention will be large, which reinforces the gravity of the findings. This paper--a product of the Office of the Vice President, Human Development Network--is part of a larger effort in the network to evaluate the economic consequences of HIV/AIDS
Pro-competitive effects of trade reform : results from a CGE model of Cameroon by Shantayanan Devarajan( Book )

7 editions published in 1989 in English and held by 31 WorldCat member libraries worldwide

Abstract: How likely is trade liberalization to produce efficiency gains in the presence of imperfect competition, scale economies, and higher-than-average wages in the modern sectors -- all common features of developing economies? These features create a potential conflict to the extent that traditional notions of comparative advantage would lead us to expect that the modern sectors will be squeezed with liberalization. In this paper we investigate the issue by using an applied general equilibrium model calibrated to Cameroonian data. Under perfect competition, the traditional expectations are borne out: manufacturing sectors on the whole contract, and the cash crops sector (mainly coffee and cocoa) is the main beneficiary; the welfare effect is a wash since the beneficial consequence of expanded imports is offset by labor being pulled away from the modern, high-wage sectors. By contrast, under imperfect competition (in the modern sectors only), trade liberalization produces welfare gains of the order of 1 to 2 percent of real income. The key is the pro-competitive effect of liberalization: domestic firms now perceive themselves as facing a higher elasticity of demand, which spurs them to increase production. Therefore, the modern sectors do much better in terms of output than in the perfectly competitive benchmark. The introduction of scale economies amplifies these results. Under reasonable circumstances imperfect competition will make liberalization more desirable, even in the absence of firm entry and exit
Risk reduction and public spending by Shantayanan Devarajan( Book )

7 editions published between 1998 and 1999 in English and held by 30 WorldCat member libraries worldwide

January 1998 Government spending on risk reduction could improve welfare in developing economies, either by alleviating a risk-market failure or by reducing uncertainty in otherwise distorted markets. As governments grow richer, the share of their GDP devoted to public spending rises. Public spending in the United States was 7.5 percent of GDP in 1913. It is 33 percent today. Although industrial countries spend twice as much as developing countries, government spending on goods and services is the same in both groups of countries. The difference is almost entirely due to transfer payments, which are about 22 percent of GDP in the industrial world. Most of these transfer payments-pensions, health insurance, unemployment insurance, guaranteed loans-are aimed at mitigating risk in the private sector. Devarajan and Hammer explore how the framework for evaluating government spending on goods and services can be extended to incorporate the government's various risk-reducing activities. They argue that there is a case for incorporating risk reduction into government spending, if doing so meets standard welfare-economics criteria for government intervention in the economy. Through examples-government-provided health insurance and crop insurance, price stabilization schemes, transfer programs for income support, public investments, publicly provided health care, and government credit guarantees-they show where government spending on risk reduction could improve welfare, either by alleviating a failure in risk markets or by reducing uncertainty in otherwise distorted markets. They illustrate calculations of the risk-reduction benefits of public spending and cite cases where their neglect could lead to serious underestimates. This paper-a product of Public Economics, Development Research Group-is part of a larger effort in the group to improve the allocation of public expenditures in developing countries. The authors may be contacted at or
World Bank research observer( Book )

2 editions published in 1999 in English and held by 1 WorldCat member library worldwide

World Bank Economists' Forum by Shantayanan Devarajan( )

1 edition published in 2002 in English and held by 0 WorldCat member libraries worldwide

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Aid and reform in Africa : lessons from ten case studies
Alternative Names
Devaragan, Shantayanan 1954-

Devaraja, Shanta 1954-

Devarajan, S. 1954-

Devarajan, Sh 1954-

Devarajan, Shanta 1954-

English (228)

Making services work for poor peopleWorld Bank Economists' ForumTaxing bads by taxing goods : pollution control with presumptive chargesWorld Bank Economists' Forum