2. Fiscal Quality: A Developing Country’s Priority Fiscal Quality: A Developing Country’s Priority Marcelo M. Giugale Director Poverty Reduction and Economic Management Latin-America and the Caribbean The World Bank

3. A tale of two fiscal imbalances…. …and a tale of two public debts A tale of two fiscal imbalances…. …and a tale of two public debts Source: International Monetary Fund World Economic Outlook, April 2010

4. A tale of two fiscal imbalances…. …and a tale of two public debts A tale of two fiscal imbalances…. …and a tale of two public debts Source: International Monetary Fund World Economic Outlook, April 2010

5. The New Drivers of Fiscal Quality 1. Lean Against the Wind: It’s Good for Politics, too. 2. A Universe of Fiscal Rules 3. Independent Fiscal Agencies 4. The Era of Sovereign Wealth Funds 5. A Balance Sheet for the State 6. Better Result-Management Technology 7. Decentralization and Devolution

6. Thank You

7. Approval Rate of Chilean Presidents Source: Surveys “Centro de Estudios Publicos” - Chile Lehman Brothers Bachelet AylwinFreiLagos __ Approves __ Disapproves

8. Number of Countries with Fiscal Rules Source: The Day After Tomorrow ch.10

9. Sovereign Wealth Funds Number of countries and number of funds Source: World Bank staff calculations on SWF Institute data