FIAS Occasional Paper No. 6. Examines and compares the recent experiences of a number of developing countries in encouraging backward linkages, the purchasing of goods and services from locally owned suppliers by companies controlled by foreign firms. The authors argue that economic liberalization helps rather than hurts domestic suppliers, that institutional support focusing on upgrading the capabilities of domestic suppliers is critical, and that promotional programs combining public and private resources can accelerate linkage development.

This book explores the wave of decentralization that has swept through Latin America and the projected institutional changes within the governments in the region. Although it notes the ways in which decentralization implies a critique of past governing patterns, the emphasis is on such potential consequences of governmental change as the strengthening of democratic participation in government and the improvement of local public service. The book draws upon institutional experiments carried out at the state level to examine which decentralization strategies work best in Latin America. It is organized around three major requirements for the success of decentralization: * Establishing the national fiscal framework * Moving government closer to the people * Improving municipal service delivery. Tables illustrate the shift of revenues and expenditures from central authorities to intermediate levels of government.

In November 1997 the World Bank and Singapore's Institute of Policy Studies sponsored a conference, "Financing Health Care and Old Age Security", to assess and identify potential solutions to these concerns. It addressed a topic of concern to nearly every country, developing and industrial, that is, how to deal with the implications of financing medical care and income security for rapidly aging populations. The issues identified and the solutions proposed can provide insight and guidance for policymakers, researchers, and others interested in addressing these challenges now. Of special interest are the contributors' analyses of Singapore's unique, integrated approach to managing social risk, which is based on mandatory individual savings accounts.

World Bank Technical Paper No. 349. The Bank's approach to water resources development has shifted from one of construction activities to one of improved management quality, creating a new generation of water-related projects and the need for new evaluation procedures. This paper addresses the methodology for economic evaluation of this new group of projects and draws on the experience of the recently approved Mexico Water Resources Management project.

To enhance and sustain economic prosperity, Russian authorities must improve the business climate so that firms restructure and the private sector thrives within a market environment. Meeting this challenge requires actions on several fronts. The Russian government asked the World Bank to write policy papers to address this issue. This volume contains those policy papers which were then presented at a high-level workshop in Moscow. The topics include: • removing impediments to robust interfirm competition, such as structural concentration, arbitrary regulatory practices, and entry barriers; • strengthening corporate governance incentive systems; • enhancing the nascent institutional framework for the exercise of creditor rights and implementation of enterprise bankruptcy procedures; • reducing barter and other nonmonetary forms of business transactions; and • fostering enterprise restructuring. The volume also contains formal comments on these papers presented by senior Russian officials at the workshop.

IFC Lessons of Experience Series No. 5. The project experience accumulated by the International Finance Corporation (IFC) provides a basis for analyzing the way in which the investment framework has changed over time in developing countries and the implications for the success and efficiency of foreign direct investment (FDI) ventures. This report discusses the growth of FDI in the world economy and its role in emerging markets, describes the role of IFC in providing policy advice related to FDI (and the IFC's experience as an investor alongside FDI in developing countries), and draws lessons for how to structure FDI projects and policies to attract such investments. Annexes present and describe global FDI flows, FDI projects involving IFC investment and FIAS advisory assignments, and FDI projects examined in preparing this study. Also available: French (0-8213-4212-6) Stock No. 14212; Spanish (0-8213-4213-4) Stock No. 14213.

Peace and reconstruction efforts in 1996 dramatically altered the landscape of Bosnia and Herzegovina and brought many tangible benefits to its people. These efforts have already led to improvements in the areas of health, education, unemployment, and infrastructure repair. Sustaining and broadening the positive developments of the past year will be the key task for the country and the international community in 1997-98. This country study examines the near-term reform issues that are essential to generating employment and providing a firm institutional and policy foundation for reconstruction and sustained economic growth. The main areas of emphasis will be on policy and budget reforms--involving institutions for macroeconomic management and bank and enterprise privatization--and reforms affecting labor markets and the social safety net.