Subnational Capital Markets in Developing Countries

A universal concern in developing and emerging countries is raising capital for investment in infrastructure. Subnational borrowing, leveraging on reliable casho flows and prudent fiscal management can be an alternative to fund such investments. This publication is about markets for subnational government debt and the successes and failures that emerging and transitioning nations have experienced in attempting to bring them about since the 1990s. It tries to assess these experiences and extract lessons which would help inform future efforts to establish and strengthen local government credit access and improve the chances for success. The first part of this book establishes a framework for the study of subnational governments as borrowers and the array of credit markets in which they may operate. In the second part, case studies from around the world document the experience of 16 countries in developing markets for subnational borrowers.