Public Debt Sustainability in Developing Asia
Edited by Benno Ferrarini, Arief Ramayandi, Raghbendra Jha
Routledge – 2013 – 280 pages
Addressing the Global Financial Crisis required fiscal intervention on a substantial scale by governments around the world. The consequent build up of public debt, in particular its sustainability, have moved centre stage in the policy debate. If the Asia Pacific region is to continue to serve as an engine for global growth its public debt must be sustainable. The book addresses this issue for Asia Pacific as a whole as well as for three of the most dynamic economies in the region: China, India and Vietnam.
The book begins with a discussion of the reasons why there is increased attention on debt related issues and outline the contents of the volume. The book also includes fiscal indicators for Developing Member Countries (DMCs) as categorized by the Asian Development Bank (ADB). Debt sustainability for these countries is assessed through extant approaches and with the most updated data sources. It also surveys the extant literature on debt sustainability, outlining the main issues related to debt sustainability and discusses the key implications for the application of debt sustainability analysis in developing Asia. The book highlights the importance of doing individual country studies in view of wide variations in definitions of public expenditure, revenues, contingent liabilities, government structures (e.g. federal), and the like as well as in the impact of debt on interest rates. It provides in-depth debt sustainability analyses of China, India and Vietnam.
The book is a comprehensive analytical and empirical update of the sustainability public debt in developing Asia. It breakes new ground in that various characteristics of the sustainability that have not yet been explored in the literature which, nevertheless, are crucial to understanding it. As a consequence, the policy analysis is based on firmer footings than in the extant literature and should prove useful to graduate students, researchers as well as policymakers.
1. Introduction, Benno Ferrarini, Raghbendra Jha, and Arief Ramayandi 2. Analytical Approaches to Assessing Public Debt Sustainability, Raghbendra Jha 3. Public Debt Sustainability Assessments for Developing Asia, Benno Ferrarini and Arief Ramayandi 4. Public Debt Sustainability and Hidden Liabilities in People’s Republic of China, Richard Hemming 5. Public Debt Sustainability and Fiscal Management in India, Mukul G. Asher 6. Public Debt Sustainability and Fiscal Vulnerability in Viet Nam, Charles Adams 7. Conclusions and Other Country Perspectives, Benno Ferrarini, Raghbendra Jha, and Arief Ramayandi
Benno Ferrarini is a Senior Economist at the Macroeconomics and Finance Research Division, Economics and Research Department, Asian Development Bank.
Raghbendra Jha is Rajiv Gandhi Chair Professor and Executive Director, Australia South Asia Research Centre, College of Asia and the Pacific, Australian National University.
Arief Ramayandi is an Economist at the Macroeconomics and Finance Research Division, Economics and Research Department, Asian Development Bank.