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.

Projects

Guyana. The University of Guyana is undertaking initiatives aimed at strengthening its Statistics and Social Policy Analysis Teaching and Research. Georgia State recently won the bid to carry out the task, which will involve:

• designing a curriculum in basic statistics,
• rationalizing and upgrading existing undergraduate and graduate course in statistics, poverty analysis, public policy analysis, and research methodology offered by the Faculty of Social Sciences,
• providing technical assistance to the University’s databank and the project’s research agenda.

The Georgia State team is led by Mark Rider and also includes Mary Beth Walker, Sally Wallace and Greg Lewis, who will be traveling to Guyana several times over the course of a year to develop the curriculum and train University of Guyana faculty.

Namibia. The ISP bid on a proposal to provide technical assistance in Namibia in 2005 and recently has been awarded the contract. The work involves ensuring that the recurring and developing grant system should provide a comprehensive, efficient and transparent way of allocating and transferring funds to the 12 regional councils in the country. ISP is expected to define principles and present options for different modalities of intergovernmental fiscal transfers from which the client can choose. The scope of work also entails designing the allocation criteria and formula for each grant, by first determining the criteria then giving weight to each criterion in terms of its significance. The financial implications of the various allocation formulae for each region will be established. Transfer modalities for each grant will be designed to ensure that the transfer mechanism is efficient, transparent and predictable. Institutional issues or arrangements will be established to ensure that the grant system is effectively and properly administered. The ministry of foreign affairs of Finland is funding the project in conjunction with the Namibian Government.

Summer School in Public Economics. The International Studies Program conducted the Summer School in Public Economics from July 18-22, 2005. The course was sponsored by the Fundacion Rafael del Pino, Spain, in collaboration with the Instituto de Estudios Fiscales, Spain, and the International Studies Program, Andrew Young School of Policy Studies. The course was organized for professors and government officials from Spain. It was taught by world renowned public finance experts such as Arnold Harberger and Wallace Oates, amongst others. The project was directed by Jorge Martinez-Vazquez.

Fiscal Decentralization Course: Concepts and Applications for Timor-Leste. ISP was awarded an opportunity to conduct a Fiscal Decentralization course in Timor-Leste. The course "Fiscal Decentralization: Concepts and Applications for Timor-Leste" was held from October 10-14, 2005, at Independence Memorial Hall in Dili, Timor-Leste. The week-long workshop was developed and delivered by the Andrew Young School in collaboration with the UN Development Programme (UNDP), with support from Development Cooperation Ireland (DCI).

The workshop provided an introductory overview of the theoretical dimensions of intergovernmental fiscal relations. In addition to exploring the conceptual underpinnings of fiscal decentralization reform, the workshop connected sound principles of decentralization reforms to specific policy issues relevant to the current situation in Timor-Leste. Discussion sessions at the end of each day enabled participants to integrate their existing knowledge of local government finance in Timor-Leste with their newly acquired knowledge on fiscal decentralization.

The course was attended by 30 senior policymakers and government officials from Timor-Leste, including the Minister of State Administration and the Vice-Minister of Finance. The course was also attended by numerous directors and senior officials from various central government ministries, district administrators, UNCDF LDP (Local Development Programme) project staff, as well as civil society representatives.

UND Bratislava/Fiscal Decentralization Reforms in Selected Transition Economies. ISP was contracted by the United Nations Development Program (UNDP) Bratislava Regional Centre to produce a series of country studies on the state of fiscal decentralization in five transition economies, including Armenia, Croatia, the Republic of Georgia, Macedonia, and Serbia.

The principal objective of the study was to accomplish an all-encompassing review that systematically captured the fiscal decentralization processes in each of the five countries. The study covered the formation of subnational governments; the division (assignment) of expenditure responsibilities between the different levels of government; the assignments of revenue sources to subnational governments; the provision of intergovernmental fiscal transfers as well as the development of a framework for subnational government borrowing. In addition to the five country reports, the study produced a final report that integrated and synthesized the experiences from these five countries and drew lessons for future decentralization reforms in these countries. Jorge Martinez-Vazquez served as Principal Investigator for the study, with substantial contributions from Jamie Boex and Andrey Timofeev. Additional contributions were provided by Marjan Nikolov (President of the Center for Economic Analysis, Macedonia), ISP Associate Michael Schaeffer, and Snezana Stojanovic.

Fiscal Decentralization: A Review of Concepts and Applications for Bangladesh. The Workshop "Fiscal Decentralization: A Review of Concepts and Applications for Bangladesh" was held from April 9-13, 2005, at the BRAC Training Center in Rajendrapur, Gazipur, Bangladesh. It was conducted by Jamie Boex and Eunice Heredia-Ortiz. The week-long workshop was developed and delivered by the Andrew Young School in collaboration with the UN Capital Development Fund (UNCDF). The workshop was attended by 18 senior government officials, including officials from the Local Government Division, the Ministry of Finance, LGED, government ministries, as well as six government officials from Nepal.

Review of India’s Intergovernmental Fiscal System. The Government of India is developing reforms to address the lack of fiscal discipline among India’s States. On behalf of India’s Ministry of Finance, the International Studies Program provided an assessment of India’s intergovernmental fiscal system and a review of international experience in promoting fiscal discipline among subnational governments in federal systems. The review of international experience focused on the experiences of Australia, Brazil, Canada, Germany, Russia, and the United States. Based on this review, the project team also offered reform options. This study was conducted between November 2004 and April 2005 and financed by a grant from the United States Agency for International Development under USAID'S Fiscal Reform Project. Mark Rider was the principal investigator for the study, and the project team also included Roy Bahl, Eunice Heredia-Ortiz, and Jorge Martinez-Vazquez. The main findings of the final report have been captured in ISP Working Paper Number 05-14.

Indonesia Masters Program. The Indonesian Masters Program ended on August 31, 2005. In its last phase, it consisted of five Ph.D. students. Three students from the first year program and two from the second year program remained in the U.S. in order to finish their studies at AYSPS and complete their Ph.D.'s. The students from the first program have finished all their coursework and have begun their dissertation writing process. The students from the second program are almost done with their coursework and will soon begin their dissertation writing process. Since the program has officially ended, the five Ph.D. students are officially sponsored by the Andrew Young School of Policy Studies and are no longer funded by the United States Agency for International Development. The goal of this cooperative agreement with USAID-Indonesia has been to bring 55 Indonesian university and government workers to Georgia State University in order to earn master's degrees in economic policy. The program is co-directed by James Alm and Jorge Martinez-Vazquez.

Peace Corps. Georgia State University has a close working relationship with the Regional Peace Corps Office in Atlanta. This relationship has been enhanced with the Peace Corps Master’s International Program for a Master's of Economics, Master's of Economics-Policy Track, and Master's of Public Administration, which stems from a partnership between the Andrew Young School of Policy Studies and the Peace Corps. Within the Andrew Young School, students are able to obtain a master's degree from the Department of Economics or the Department of Public Administration and Urban Studies. Each student works closely with an academic advisor to exploit the synergy potential between classroom work, field experience, thesis research, directed readings, and internships, including overseas assignments.

The students receive financial aid for their program of study. The AYSPS holds seven tuition waivers that allow out-of-state students to pay in-state tuition ($125 per credit hour for in-state versus $501 for out-of-state). These waivers are assigned to students based on criteria set by the College. Additionally, master's students often receive assistantships that waive tuition and also provide a small stipend. The Peace Corps candidates are eligible and will compete for these waivers.

Fiscal Policy Summer Training Program 2005. The International Studies Program conducted a three-week Fiscal Policy Summer Training Program. The training courses, led by a panel of distinguished faculty and leading policy experts with worldwide experience, are designed for government officials and policy makers from developing and transition countries as well as their counterparts with international donor agencies. This year's program consists of the following Fiscal Decentralization and Local Governance course (June 20-July 8, 2005).

The training program was designed by economics faculty from the Andrew Young School of Policy Studies and took place on the Georgia State campus in Atlanta. Senior government officials and donor agency representatives from Vietnam, Indian, Kenya, Serbia, Dominican Republic, Ghana, Montenegro, Jamaica, Bhutan, South Africa, Zambia, Uganda, Indonesia, China, Nepal, Bangladesh, Tanzania, Kenya, Macedonia, and others attended the program. Training included intensive classroom sessions featuring lectures, fiscal policy analysis and simulations, case studies, group discussions, country-specific individual projects and field visits to relevant government offices such as the DeKalb County Tax Assessors office, Georgia Department of Revenue and the Carter Center. This is a tuition-based program ($300,000) and has been successfully conducted since 2000. The training courses were led by a panel of faculty and policy experts. Professors within AYSPS who lectured during this course included:

• Roy Bahl – Dean, Andrew Young School of Policy Studies
• James Alm – Chair, Department of Economics
• Jorge Martinez-Vazquez – Director, International Studies Program
• Sally Wallace – Deputy Director, Fiscal Research Center
• David L. Sjoquist – Director, Fiscal Research Center
• Dana Weist – Lead Public Sector Specialist, The World Bank
• Ronald McGill – Senior Technical Adviser, Local Governance Unit, UNCDF
• Mark Rider – Department of Economics
• Jameson Boex – Department of Economics
• Andrey Timofeev – International Studies Program
• Eunice Heredia-Ortiz – Department of Economics

The Fiscal Policy Summer Training Courses were managed by Jameson Boex.

Tanzania, Formula Based Grants.  In Tanzania this year, Jameson Boex and Jorge Martinez-Vazquez have continued working on the “Development of a System for Allocating Grants to Local Government Authorities in Tanzania” study. The ISP is providing technical assistance based on a solid understanding of transfer design issues and the particular situation in Tanzania. The objective of the study is to analyze the shortcomings of the present system of intergovernmental transfers and propose equitable and transparent options for allocating grants to local government authorities in Tanzania. Boex and Martinez have been working with the Tanzanian Government and technical experts to achieve this objective. This project, funded by Danish International Development Agency (DANIDA), is currently ongoing. ($201,209)

Tanzania, Local Government Finance. In addition to the project carried over from 2004, Jameson Boex has also begun “Development of a Strategic Framework for the Financing of Local Governments in Tanzania.” Boex served as Team Leader for this study, which was designed to assist the Government in developing an overall and strategic framework to guide decisions on the structure of the financing of Local Government Authorities, including decisions on the structure of the system of intergovernmental transfers as well as the structure of local government taxes. The team also included Phillip Van Ryenveldt, an independent consultant from South Africa, subcontracted by ISP for this project. ($211,000)

Tanzania Training. The Andrew Young School of Policy Studies, together with Mzumbe University, conducted a workshop on "Local Government Finance in Tanzania: Concepts, Practices And Reforms." The workshop was held in Morogoro, Tanzania, from September 17-23, 2005. The workshop was conducted by Jamie Boex and Paul Kagundu.

The purpose of the week-long program for Tanzanian government officials and policy experts was to refresh and deepen their technical and critical understanding of fiscal decentralization policy issues. To this effect, the program provided a comprehensive overview of the theoretical dimensions of intergovernmental fiscal relations, with a focus on applications for fiscal decentralization reforms in Tanzania. As such, the course was a logical complement to ongoing technical assistance and capacity building activities in local government finance reform. In addition to exploring the conceptual underpinnings of fiscal decentralization reform, the workshop connected sound principles of decentralization reforms to specific policy issues relevant to the current situation in Tanzania. The audience for this program consisted of mid-level government officers (including budget officers, planners, economists, accountants, ZRT finance specialists, and other officers) from PO-RALG, the Ministry of Finance, PO-P&P, PO-PSM, as well as relevant sector ministries. The composition of the training groups enhanced cross-sectoral understanding of local government finance issues in Tanzania.

Jamaica Tax Reform project. This project ended in 2005. Roy Bahl, Sally Wallace, James Alm, Mark Rider, David L. Sjoquist, and Felix Rioja made several trips to Jamaica to compile a thorough and comprehensive review of the Jamaican tax structure. The Jamaican Government awarded the International Studies Program the task to conduct a comprehensive review of its tax structure in 2003. Jamaica had not undertaken a review of such proportions in nearly 20 years. Bahl was instrumental in acquiring this grant and giving ISP-AYSPS the opportunity to lead this endeavor. The results of this review are being utilized by the Government of Jamaica and the Tax Reform Committee to develop a blueprint for the ultimate reform process. Roy Bahl and Sally Wallace served as co-directors of the Jamaica Tax Reform Project. ($966,499)

Fiscal Reform in Support of Trade Liberalization. In July 2003, the U.S. Agency for International Development’s Office of Economic Growth, Agriculture and Trade (EGAT) initiated the Fiscal Reform in Support of Trade Liberalization worldwide program (known as The Fiscal Reform Project), which is implemented by a consortium of Development Alternatives, Inc. (DAI) in Washington, D.C., with participation by the Andrew Young School of Policy Studies, the Boston Institute for Developing Economies and Training Resources Group, Inc. The Georgia State team consists of Jorge Martinez-Vazquez, Jameson Boex, Mark Rider, Luc Noiset (ISP affiliate), and Javier Arze.

Task orders and activities developed and delivered by the Andrew Young School under the Fiscal Reform Project include annual training programs on "Fiscal Policy Reform: Principles and Trends" in April 2004 and April 2005; a review of India’s Intergovernmental Fiscal System; and the development of Revenue Forecasting Modeling in Vietnam. Under the Vietnam task order, ISP affiliate Noiset has traveled to Vietnam for extended periods this year. He has been helping the Congressional Budget Commission and the Ministry of Finance to develop a revenue forecasting model with projection ability of at least three years. He has also been providing the necessary training so the staff can use, update, and modify the model. Martinez-Vazquez, Boex and Arze contributed to a study on “Fiscal Policy, Fiscal Management, and Corruption," and made a presentation on corruption in Tanzania at the USAID Conference “Promoting Economic Growth in a New Era.” Officials from USAID and the World Bank were in attendance. Finally, the Fiscal Reform Project also relies on the Andrew Young School to develop policy-oriented research studies, including a study on fiscal policy and corruption and a study on fiscal decentralization and poverty reduction. ($372,000)

Current Indefinite Quantity Contracts (IQC)

The ISP is a member of several USAID Indefinite Quantity Contract (IQC) consortia. These contracts give USAID a 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 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 Macro-II (SEGIR-II) Financial Services IQC, Development Alternatives, Inc. (DAI). The International Studies Program is providing support to DAI on a Support for Economic Growth and Institutional Reform (SEGIR) Project in furtherance of USAID’s goal of helping countries achieve broad-based economic growth on a sustainable basis. The ISP will be aiding in macroeconomic policy, poverty alleviation and economic institutions and analysis.

Fiscal Reform in Support of Trade Liberalization (FRTP), SEGIR EP IQC. The International Studies Program will be enabling USAID to better address fiscal issues that arise in developing countries—especially those linked to the process of trade liberalization through this IQC. ISP will facilitate access by mission to specialized fiscal expertise and training resources, particularly identifying opportunities for fiscal reform and specific implementation activities and improving technical competence on fiscal issues among USAID staff. Furthermore, ISP aims to strengthen USAID’s understanding of the many fiscal issues that confront developing and transition countries, especially as they relate to trade liberalization.

Reports

International Studies Program Working Papers

Jamaica Tax Reform Project Reports

Conference Papers

The Andrew Young School's Sixth Conference in its Series on Public Finance Issues in an International Perspective focused on Experimental Public Economics. The conference was held on May 23-24, 2005, in Stone Mountain Park, Ga., and brought together leading economists from around the globe to discuss issues in experimental public economics. Presentations were:

• Session 1: Foundations
  • Social Preferences and Voluntary Contributions to Public Goods
    James Cox and Vjollca Sadiraj
  • When the Shoe is on the Other Foot: Experimental Evidence on Evaluation Disparities
    Lucy Ackert, Bryan Church and Gerald Dwyer
  • Discussant Paul Ferraro
• Session 2: Fairness and Policy Design
  • Preferences over Income Distributions - Experimental Evidence
    Dirk Engelmann and Martin Strobel
  • Experimental Evidence for Tax Policy Design
    Lucy Ackert, Ann Gillette, Jorge Martinez-Vazquez, and Mark Rider
  • Discussant Benno Torgler
• Session 3: Attitudes and Biases
  • Cultural Diversity, Discrimination and Economic Outcomes: An Experimental Analysis
    Ron Cummings and Paul Ferraro
  • Debt Aversion and the Demand for Loans Post-Secondary Education
    Catherine Eckel, Cathleen Johnson, and Claude Montmarquette
  • Discussant C. Monica Capra
• Session 4: Social Norms and Pressures
  • Information and Social Comparison and Price Giving: Gender Differences in Two Field Experiments
    Stephan Meier
  • Public Observability of Decisions and Voluntary Contributions in a Multi-Period Context
    Charles Noussair and Steven Tucker
  • Discussant Christian Vossler
• Session 5: Tax Evasion
  • Audit Certainty and Taxpayer Compliance
    James Alm and Michael McKee
  • Tax Evasion and Social Interactions
    Bernard Fortin, Guy Lacroix, and Marie-Claire Villeval
  • Discussant Ann Gillette
• Session 6: Closing Session
  • Perspectives on the Use of Experimental Methods in Public Economics
    Roy Bahl

Visiting Scholars

Dr. Jose Felix Sanz visited from the Universidad Complutense, in Madrid, Spain, from September 2004 until March 2005. He was involved in editing a book with Jorge Martinez-Vazquez on the Spanish tax system as well as undertaking his own research with other members of the faculty.

Dr. Kontstantin Pashev visited from the Center for the Study of Democracy in Sofia, Bulgaria, from October 2004 to March 2005 under the Fulbright Senior Scholarship Program. His research interests cover taxation of small and medium-sized enterprises, taxation and international competitiveness, compliance management and measurement.

1. For a complete listing of AYSPS Active Research Sponsored Grants from CY2005, see the Appendix: Report on External Funding.