International Studies Program¹
at the Andrew Young School of Policy Studies

The mission of the International Studies Program (ISP) is to provide academic and technical training, research and technical assistance in support of sound public policy and sustainable economic growth in transition and developing economies. Jorge Martinez-Vazquez directs the International Studies Program.

A primary focus of the ISP is to provide short and long-term technical assistance services in developing and transition countries. The ISP's experienced faculty and staff often serve as project directors, senior advisers, chiefs-of-party and lead economists for major projects funded by government and multilateral assistance organizations. All of our personnel have experience working with donor organizations and host-country officials, and consult closely with these clients to implement technical assistance plans.

In addition to the ISP's full-time team of dedicated experts, the ISP draws upon the expertise of the Andrew Young School's faculty, affiliate faculty and a network of outside consultants, who enjoy worldwide reputations in their fields, and have successfully implemented technical assistance projects in Africa, Asia, the Caribbean, Europe, North America and Latin America. These personnel provide expertise in the following areas:

• Fiscal Policy
• Public Administration, Budgeting and Financial Management
• Tax Administration
• Fiscal Decentralization and Intergovernmental Fiscal Relations
• Economic Analysis & Revenue Forecasting

We have assisted clients in over 40 countries, providing policy advice, technical assistance and project management, and training for programs sponsored by the United States Agency for International Development (USAID), The World Bank, Asian Development Bank (ADB), Inter-American Development Bank (IADB), United Nations Development Program (UNDP) and the Organization for Economic Cooperation and Development (OECD). We also consult directly with foreign governments on technical assistance and training projects. Current activities include technical assistance and training programs in China, India, Indonesia, Malawi, Nigeria, Russian Federation, South Africa, Uganda, and the West Bank and Gaza.

Main highlights for the ISP this year were the Indonesia Masters Program, a partnership with An-Najah National University in Palestine, the introduction of the Fiscal Policy Resource Center Online, the annual AYSPS/World Bank Institute Fiscal Policy Summer Training Program, the India State Fiscal Reform Assessment study, the continuation of a three-year USAID contract in support of fiscal decentralization in the Russian Federation as well as a new World Bank contract to provide technical advise on fiscal decentralization and intergovernmental fiscal relations issues to the government of the Russian Federation, studies on Intergovernmental Transfers in Indonesia and Malawi, the Fiscal Analysis Study of Anambra State, Nigeria, and Public Finance Conference in Honor of Richard Bird with such renowned public finance experts as Richard Musgrave in attendance.

Throughout 2001, the ISP (http://isp-aysps.gsu.edu) continued to enhance the internet presence that it established in 2000. The Program's main page contains a bulletin board of recent events, such as the seminars, the presence of visiting international scholars, and upcoming projects or training activities. The web site further gives access to the ISP Working Paper Series, information about ISP projects and training around the world, interactive policy training modules, and information on ISP policy experts.

In This Page

• Technical Assistance Projects
• International Policy Training
  • Fiscal Policy Summer Training Program
• Other ISP Activities
• Proposals under review
• Indefinite Quantity Contracts
• Reports

Projects

Indonesia Masters Program. The ISP and Department of Economics were awarded a $2.5 million cooperative agreement in 2001 from USAID to improve and strengthen fiscal policy in Indonesia. The main goal of this cooperative agreement has been to bring 35 Indonesian university and government workers to Georgia State University in order to earn masters degrees in economic policy. The school is applying its nationally recognized expertise in public finance research and economics instruction in this initial one-year program designed to improve the capabilities of Indonesia's outer-lying districts and local governments, as the country moves rapidly to decentralize its fiscal operations.

After completion of a month-long training program in basic economic theories and tools in Manila, the Philippines, students arrived in Atlanta in July to begin their M.A., and are currently in their second semester. They will graduate in early June after finishing their final class during May, and return to their former positions in Indonesia as local government workers and University lecturers.

The group is composed of students from Universities stretching the entire archipelago of the country, from Syiah Kuala University in Banda Aceh, to Sam Ratulangi University in Manado, to Cendrawasih University in Jayapura. A special feature of the program is visiting scholar, Dr. Sri Mulyani Indrawati. The director of LPEM (Faculty of Economics), at the University of Indonesia, Jakarta, Dr. Indrawati is teaching and mentoring the students, giving special lectures and presentations, and collaborating with GSU faculty members on several articles & reports on Indonesian Economics.

The program is co-directed by James Alm and Jorge Martinez-Vazquez.

India Fiscal Reform Assessment.. The ISP was selected by USAID to conduct the India State Fiscal Reform Assessment in October 2001. The USAID Mission in India is in the process of formulating a new five-year development strategy for India. In support of this effort, the ISP assisted USAID in pulling together the factual information needed to establish pragmatic and realistic recommendations to increase the capacity of selected state governments in India, improving their fiscal management capabilities, and reducing fiscal deficits. For this purpose, a team of four experts, including Roy Bahl, John Kurian, Mark Rider, and Michael Schaeffer worked in New Delhi and selected Indian states during October 2001 to advise USAID/India (USAID: $162,854).

Malawi Intergovernmental Fiscal Transfers. The ISP worked in Malawi on the design and implementation of a system of Intergovernmental Fiscal Transfers, sponsored by the U.N. Capital Development Fund/ U.N. Development Program. The principal objective of this study was to assist the Government of Malawi in establishing an objective mechanism for the allocation of resources from the central government to local assemblies, thus forming a key part of Malawi's decentralization process. Jamie Boex served as team leader of the project. Directed by Jorge Martinez-Vaquez. ($48,000)

Nigeria Fiscal Analysis of Anambra State. In Nigeria, James Alm and Jamie Boex of the Department of Economics and the ISP worked on the Fiscal Analysis of Anambra State study. This study assessed the fiscal capacity of Anambra State, Nigeria, to carry out major capital infrastructure projects. The impetus for this fiscal study was that the state government intends to develop a master plan for the Awka Capital Territory (ACT). The study focused on all dimensions of Anambra State's fiscal structure, including the state's tax structure and receipt of federal allocations, the state's budget process and fiscal management practices, and state-local fiscal relations and the fiscal capacity of local governments in Anambra State. ($99,000)

Russian Federation USAID Project. The ISP continues to be a subcontractor to Delloite and Touche Tohmatsu on the USAID-sponsored Fiscal Decentralization Project. Under this project, the ISP provides technical experience to the Russian Center for Fiscal Policy as it continues its role as primary U.S. technical assistance provider to the Russian government in the area of fiscal decentralization and intergovernmental fiscal relations. Through the Russian Center for Fiscal Policy, the ISP continues to work with the Russian Ministry of Finance, the State Duma, and regional governments to increase the efficiency and equity of the system of intergovernmental fiscal relations in the Russian Federation. Jorge Martinez-Vazquez and Jamie Boex have been providing continual advice and reports on these policy issues. ($225,000)

Russian Federation World Bank Project. The ISP continues to work in the Russian Federation partnered with the Institute for the Economy in Transition (IET) and the Center for Fiscal Policy (CFP) through a World Bank contract to provide technical assistance to the government of the Russian Federation on Intergovernmental Fiscal Relations issues. The contract, signed September 2001, is worth $500,000 for the AYSPS activities and $1.5 million overall for the period 2001-2004. Faculty of the ISP and associated with the ISP such as James Alm, Roy Bahl, Jamie Boex, Jorge Martinez-Vazquez, and Sally Wallace are contributing advice and research to this project.

International Policy Training

Fiscal Policy Training Program 2001. Since August 2000, the ISP also holds its annual summer training program with courses on Fiscal Decentralization and Budgeting, Revenue Forecasting, and Fiscal Management. During 2000 and 2001, the ISP partnered with the World Bank Institute to jointly present these two Training Programs. They were designed by economics faculty from the Andrew Young School of Policy Studies and took place on the GSU campus in Atlanta, Georgia. Senior government officials and donor agency representatives from Africa, Asia, Ukraine, the Russian Federation, and Latin America attended the program. Training included intensive classroom sessions featuring lectures, fiscal policy analysis and simulations, data management, case studies, group discussions and country-specific individual projects. These two programs have been so successful with governments of developing countries and funding agencies that the ISP is adding an additional two-week training program on revenue forecasting and fiscal management. Jamie Boex managed the program, performing project management tasks, and leading a series of workshops on analyzing and simulating fiscal decentralization policies. Ross Rubenstein taught one week of the Budgeting Course. Directed by Jorge Martinez-Vaquez. (Various donors; $130,000 total)

UNCDF Programme Officers Workshop on Fiscal Decentralization in Bangkok. The ISP has also been involved in fiscal policy training in this region. From October 8-10, 2001, the ISP conducted the UNCDF Programme Officers Workshop on Fiscal Decentralization in Bangkok, Thailand, in order for its Programme Officers to acquire a deeper understanding of the dimensions of fiscal decentralization reform. Jamie Boex served as the main facilitator for four workshop sessions held at the Asian Institute of Technology (AIT) in Bangkok, Thailand. The materials for the workshop were developed by the ISP in close cooperation with UNCDF Headquarters in New York, and included both reading materials as well as distance learning video lectures. In addition, Jamie Boex developed an interactive CDROM with training materials on fiscal decentralization for UNCDF program staff. Directed by Jorge Martinez-Vaquez. (UNCDF, $24,000)

An-Najah National University Partnership. The ISP has recently established a comprehensive partnership with the Center for Studies, Consultations and Technical Services (CSCTS) at An-Najah National University (ANNU), in Nablus, West Bank. The overarching objective of this partnership is to achieve more responsive and accountable government in the Palestinian territories by building human capacity in academia, government, and civil society through education and training. Instead of merely proposing an exchange of faculty or students, this partnership develops a truly integrated partnership, with joint activities in academic development, applied research, and outreach and training. Specifically, the partnership aims to enhance the academic and outreach capacities of ANNU in the field of public policy; build a strong and enduring relationship between ANNU and AYSPS; encourage sound policy reforms; and jointly engage in direct outreach activities (technical assistance, applied research and training activities) that will result in more responsive and accountable government. Jamie Boex managed the academic partnership between the International Studies Program and the Economic Department of the An-Najah National University. Partnership activities included a review of the curriculum for An-Najah's Masters Program in Economic Policy Management, an online seminar on fiscal and economic analysis, and faculty exchanges. Directed by Jorge Martinez-Vazquez.(Total project funding USAID/ALO, $98,000)

As part of the Andrew Young School's partnership with An-Najah National University in Nablus (West Bank), a faculty committee from the International Studies Program (ISP) is currently reviewing An-Najah's Masters Degree in Applied Economics curriculum and preparing suggestions to improve the program's curriculum. In addition, the ISP is jointly developing a training module on economic and fiscal analysis with An-Najah counterparts. Part of this partnership has involved the ISP's first "virtual" seminar where faculty members from the Andrew Young School made presentations about the various facets of fiscal policy analysis and their relevance for sound governance in Palestine. Since the Palestinian counterparts could not be present during the seminar, the presentations were recorded and are available over the Andrew Young School's website as part of it online Fiscal Policy Resource Center. Once completed, the training module will be used by the Center for Studies, Consultations and Technical Services at An-Najah to train Palestinian policy makers and government officials.

Fiscal Policy Resource Center Online. This latest initiative promotes the larger mission of the ISP through the distribution of on-line learning materials in the fields of fiscal policy and applied economics. The Fiscal Policy Resource center (http://isp-aysps.gsu.edu/fprc/index.html) is an online resource center maintained by the ISP at the Andrew Young School with the objective of promoting excellence in the design, implementation, and evaluation of fiscal policy in developing and transitional economies. The online training materials, including video lectures and background readings, are designed to provide clear, structured, and comprehensive overviews of key areas of fiscal policy and economic reform in a way that is accessible to policy makers and government officials worldwide.

Other ISP Activities

Public Finance Conference in Honor of Richard Bird. The ISP holds frequent international conferences on issues in public finance in developing countries. From April 5-6, 2001, the ISP held a Conference in Honor of Richard Bird: Public Finance in Developing and Transition Countries at the Evergreen Hotel and Resort, Stone Mountain, Georgia, which was organized by James Alm and Jorge Martinez-Vazquez. The participants included the following:

Conference Papers included:

"The View from Below: Subnational Intergovernmental Fiscal Relations in Russia, China, and the United States," Roy Bahl and Sally Wallace

"Challenges of Fiscal Decentralization in Transitional Economies: An Asian Perspective," Govinda Rao

"Rapid Demographic Change in Developing Countries: Challenges for Federalism and Local Public Finance," David Wildasin

"Governance, Decentralization, and Democracy," Robert Ebel and Serdar Yilmaz

"A Survey on Growth and Taxes," Jack Mintz

"The Value Added Tax in Developing Countries," Michael Keen

"Taxation of Electronic Commerce in Developing Countries," Charles McLure

"Developing Hard Budget Constraints in Decentralized Democracies of Latin America," Bill Dillinger, Guilermo Perry, and Steve Webb

"The Cost of Government and the Misuse of Public Assets," Vito Tanzi

"Institutions, Stakeholders, and Tax Evasion in Developing and Transition Countries," James Alm and Jorge Martinez-Vazquez

"The Circular Flow of Debts and Barter in a Transition Economy," Wayne Thirsk

"On Merit Goods," Richard Musgrave

"Taxing Tobacco in the European Union," Sijbren Cnossen

Annual Distinguished Visiting Professor Lecture Series. Distinguished Visiting Professor Richard Bird, Professor Emeritus at the University of Toronto and Adjunct Professor and Director of the International Tax Program at Rotman School of Management, one of the foremost experts in public finance in developing countries, presented a series of lectures on fiscal policy issues with an emphasis on developing countries during April 2001.

International Studies Program Update. In an effort to promote the ISP's active role in support of excellence in the design, implementation and evaluation of public policy around the world, the ISP began distributing the International Studies Program Update, a new quarterly electronic newsletter in October 2001. This newsletter is designed to keep ISP clients, friends, and policy experts around the world informed about our ongoing research efforts, new working papers, development on the technical assistance front, and upcoming training programs. Interested parties can view as well as subscribe to this newsletter at http://isp-aysps.gsu.edu/aboutisp/update.html.

Proposals Under Review

$2 million proposal to USAID-Jakarta, for a second year of the Indonesian Masters Degree program in economics, submitted by James Alm, Roy Bahl, and Jorge Martinez-Vazquez.

$23 million proposal to USAID-Jakarta, for a capacity-building program in Indonesia, submitted by James Alm, Roy Bahl, and Jorge Martinez-Vazquez.

$601,467 proposal to Asian Development Bank for TA No. 3777-INO Fiscal Decentralization in Indonesia, submitted February 18, 2002 by Jorge Martinez-Vazquez and Jamie Boex.

$558,000 unsolicited proposal to USAID for an Academic Partnership in Support of Sound Public Policy and Good Governance in Pakistan, submitted February 15, 2002 by Jorge Martinez-Vazquez and Jamie Boex.

Current Indefinite Quantity Contracts (IQC)

The ISP is a member of several USAID Indefinite Quantity Contract (IQC) consortia. These contracts give USAID quick and easy way to contract out advisory services to the ISP.

Strategic Policy and Institutional Reform (SPIR) IQC, Development Alternatives, Inc. (DAI). This IQC provides services to support strategic policy and institutional reform that strengthens accountability, transparency, and effectiveness. The contract is designed to assist host country institutions and organizations and USAID in addressing policy and institutional reform issues through democratic processes. The contract addresses the frequently fatal gap between broad policy pronouncements and the tough challenges of effective institutional reform. Through the SPIR IQC, the DAI/AYSPS team can assist with programs that cut across a variety of sectors and across governance subsectors, for example, fiscal decentralization reform, local government reform, legislative strengthening, and anti-corruption in the public sector.

Sustainable Urban Management (SUM) IQC, PADCO Consortium. The SUM IQC provides advisory services, technical assistance, and training in support of USAID's goal of well-managed urbanization, and the Environment Center's strategic support objective of improved management of urbanization in targeted areas. Managed by the Office of Environment and Urban Programs, the SUM IQC delivers services in these four functional areas: expanded and equitable delivery of urban services and shelter; more effective, responsive and accountable local governments; reduced urban pollution; and credit program monitoring.

Fiscal Reform and Development in the ENI Region IQC, Deloitte Touche Tohmatsu Consortium. At a time when governments in emerging economies and donor agencies must achieve greater results with fewer resources, proven consulting ability is essential to cost-effective, successful development efforts. Working in partnership with donors, governments, enterprises and local communities, the International Studies Program and Deloitte's Emerging Markets Group have achieved positive results on technical assistance projects around the world.

Support for Economic Growth and Institutional Reform (SEGIR) Financial Services IQC, Chemonics Consortium. Under the Finacial Services IQC (USAID/Global Bureau), the International Studies Program is able to help developing and transition countries develop the policies, markets, financial instruments, and institutional linkages necessary for a well-functioning financial sector.

Reports

International Studies Program Working Papers

Russia Fiscal Decentralization Project Reports:

"Institutional Challenges in Financing Road Maintenance: A Review of International Practices," April 25, 2001.

"Financing Science, Research, and Development: A Review of International Practices," May 10, 2001.

"The Use and Accounting of (Extra)Budgetary Funds: An Overview of International Practices and Lessons," May 2001.

"Recommendations on Distributing Regional Grants to Local Governments," September 2001.

Visiting Scholars 2001

During the Summer 2001, the ISP hosted 3 South African government officials for a 2-day, intensive study tour. The group was made up of Yunus Carrim, chairperson of the Parliamentary Committee on Local Government based in Cape Town, Oupa Nkoane, a senior policy researcher from the South African Local Government Association, and Mbulelo Tshangana, the Deputy Director Municipal Finance Policy based in the Department of Provincial and Local Government (DPLG). The study tour was focused on finding ways to ensure equity in the property tax application legislation that is currently before the legislature in South Africa.

Chuck Costello from the Carter Center Democracy Program, Ed Cain from the Carter Center Global Development Program, and Larry Grigors GA DOR, Property Tax Division all presented lectures to the Indonesia Masters students during Fall Semester 2001. These visiting lectures were organized by Sally Wallace.

In December 2001, the Prime Minister of the Central African Republic, Martin Ziguele visited the Andrew Young School of Policy Studies to discuss fiscal policy issues with our experts and discuss ways that the AYSPS could assist their government.

The week of November 5, 2001, the ISP hosted Dr. Paul Deuster, Economic Growth Team Leader at USAID- Jakarta. Dr. Deuster oversees the Indonesian Masters Program at USAID-Jakarta, and was visiting the Andrew Young School to tour the campus and get a first-hand look at the program. Dr. Deuster met with the Indonesian students, as well as with various faculty members involved in the program.

Dr. Quan Dinh, Senior Economic Advisor at USAID-Jakarta visited the Indonesia Program in late December 2001. He is the technical officer for the Indonesian Masters Program. Dr. Dinh was visiting GSU for a chance to see and talk with the students, get their feedback on the program, and meet with the faculty and staff involved with the students. Discussions were held regarding ways to improve the program in the future.

Dr. Franck Wiebe, Chief Economist at The Asia Foundation presented lectures on Micro-Enterprise during the week of January 4, 2002, Dr. Franck Wiebe, Chief Economist at The Asia Foundation, presented several lectures for the Indonesian students on Micro-Enterprise Experiences in Indonesia and Poverty in Indonesia. He has been heavily involved in the Asia Foundation's efforts in small and medium enterprise development programming in Indonesia, as well as the Philippines, Vietnam, Sri Lanka, South Korea, Bangladesh, and Nepal, amongst other places. This visit was arranged by Sally Wallace.

Dr. Scott Pearson, of Stanford University, presented lectures on Food Policy in Indonesia to the Indonesia Masters students in mid February 2002. His lectures to the students are being video-recorded here at GSU, and will be distributed to the students' local Universities in Indonesia for distance-learning modules.After teaching economic development and international trade in the Food Research Institute at Stanford, Dr. Pearson worked extensively in Indonesia, advising governments and agencies on food and agricultural policy.

Mr. Pavel Kuznetsov, the 2001 Eisenhower Fellow from Russia and a Russian expert on enterprise restructuring, property rights and corporate governance for the Russian-European Centre for Economic Policy (RECEP) visited the ISP in October 2001. Mr. Kuznetsov discussed and shared insights about tax reform in Russia in meetings with economics faculty and doctoral students.

Sergey Paturyan, head of IT department in the Ministry of the State Revenues of Armenia, was an IREX visiting scholar with the ISP from March-May 2001. During his visiting he performed research on tax administration in Armenia as well as holding an internship in Washington, D.C. His research at the GSU was devoted to the process of tax reforms in countries in transition that are shifting from a centrally-planned to the market-based economies. He particularly focused on tax reforms in the states of the Former Soviet Union. With the assistance of Jorge Martinez-Vazquez he worked on a paper, "A Note on Recent Tax Reforms in Armenia." Following his stay at GSU, he took part in an internship with a lawyer in New York for two weeks where he became more familiar with the preparation of various types of income tax returns in the United States.

Dr. Sri Mulyani Indrawati is a visiting professor, who arrived in Atlanta with her family on August 10, 2001. Dr. Sri Mulyani, the Director of LPEM (Faculty of Economics) at the University of Indonesia in Jakarta is a visiting faculty member at the Andrew Young School for one year. She will be teaching and mentoring the Indonesian students in the Indonesian Masters program as well as giving several seminar presentations and co-authoring articles and reports with faculty that may lead to a book on Indonesian economic issues.

Mr. Andrei Timofeev is a visiting scholar at the International Studies Program from September 2001 through May 2002. Andrei was a member of the GSU team of the Fiscal Reform Project in the Russian Federation. He is currently finishing his dissertation for his Ph.D. in Economics from CERGE at Charles University in Prague. His thesis examines the relationship between fiscal federalism and growth in the context of transition economies.

Serghei Buruian was an IREX visiting scholar with the ISP from August through November 2001. Mr. Buruian's visit to the Andrew Young School was sponsored by IREX through the State Departments Bureau of Educational and Cultural Affairs. Mr. Buruian is Deputy Head of Division in the Department of Foreign Relations and Trade, Ministry of Economy of the Republic of Moldova. The topic of his research while he was at the Andrew Young School is "Sustainable Development of Moldovan - American Trade and Investments Relations." During the three months stay at GSU, Mr. Buruian analyzed the current situation of the trade and investments between the two countries, general tends of American foreign trade and investments, barriers and obstacles that prevent the development of the cooperation between the two countries, as well as the possible recommendations on the further promotion of American trade in investments in Moldova.

1. For a complete listing of AYSPS Active Research Sponsored Grants from CY2001, see the Appendix: Report on External Funding.