States and many localities face the direst fiscal situation that they have encountered in the last 60 years or so, with revenues falling or stagnant while expenditure demands continue to grow. This divergence in incomes versus outgoes means that most states face recurring operating fund deficits...

As with any large scale governmental activity, there are always questions about how well a function is performed in accomplishing its manifold objectives: are decisions well informed, coordinated, and cost effective? In the case of public investments, these issues are all the more important...

In developing countries the twin tasks of building more dispersed and democratic governments and opening economies to freer markets and greater private ownership have been attempted in tandem-and have proved a difficult undertaking. A reduction in barriers to the movement of capital and goods...