Public investment management

Reviving Philadelphia: Using the Hud Section 108 Program to Create a Loan Pool for Economic Development, 1993 – 2000

Author
Hilary Duff
Focus Area(s)
Country of Reform
Translations
Abstract

In 1995, Philadelphia, a city on the East Coast of the United States, pioneered a unique use of a long-running federal loan program to bolster economic development and create jobs for low-income communities. Conceived by elected officials and economic development staff and championed by an ambitious mayor, the novel approach employed a lesser-known component of the US Department of Housing and Urban Development’s Community Development Block Grant program known as a Section 108 loan guarantee. Philadelphia established the nation’s first citywide loan pool funded by the Section 108 program and became a model for other communities wishing to undertake similar projects. This case is the first in a series on financing local housing and economic development initiatives.

Hilary Duff drafted this case study based on interviews and research conducted in Philadelphia during November and December 2022. This case is part of a series about using the U.S. Department of Housing and Urban Development’s Community Development Block Grant program effectively. The views expressed in the case study do not necessarily represent those of the Department of Housing and Urban Development. Case published in April 2023.

Managing Revenue at the Palestinian Authority, 2002 - 2004

Author
Tristan Dreisbach
Country of Reform
Background
Abstract

“Could the Palestinian Authority survive?” That was the question on many Palestinians’ minds when Salam Fayyad became finance minister in June 2002 and the cash-strapped government was struggling to pay its civil servants and suppliers. To avert a collapse, Fayyad quickly took steps to increase government revenue. He developed a system that would direct into a single, centralized treasury account all taxes, fees, and other income collected by government offices. He created a fund that consolidated the Palestinian Authority’s tangled and largely opaque commercial and investment assets and contracted with an outside firm to conduct a full audit of those holdings. He also took action to reduce smuggling and assert control over the tobacco authority and petroleum commission—two autonomous PA agencies plagued with management problems. The reforms required Fayyad to navigate political resistance and an entrenched administrative culture wary of financial transparency. Fayyad’s achievements enhanced efficiency, helped restart the flow of tax revenues withheld by Israel, and enabled the PA to attract external support and investment, quashing—at least temporarily—an existential financial crisis.

Tristan Dreisbach drafted this case study based on a series of interviews conducted with Salam Fayyad in Princeton, New Jersey, in 2019. The study also incorporates other interviews conducted in the Palestinian cities of Ramallah, Nablus, and Jericho in June and July 2019. The case is part of a series on state building in Palestine, 2002–05 and 2007–11. Case published March 2022.

Building a Healthier Rwanda: Linking Social Priorities to the National Budget, 2011–2016

Author
Simon Engler
Country of Reform
Abstract

Rwanda’s public health system was among the many casualties of the country’s 1994 genocide. In the aftermath of the violence, health workers were in short supply, maternal and child mortality rates spiked, and infectious diseases such as HIV/AIDs and tuberculosis often went untreated. By 2011, Rwanda had made enormous progress in remedying the situation, but much more remained to be done. From 2011 to 2016, officials in the finance ministry and health ministry worked together to develop five-year plans for public health, translate their new priorities into annual budgets, and monitor spending so as to ensure progress toward national goals. They revised the budget calendar to improve the planning process, helped local authorities build medium-term public-health strategies, and refined the tools used for tracking spending in the health sector. They met or surpassed more than half of the top targets they set for 2015, cementing the gains Rwanda had made since 1994.

Simon Engler drafted this case study with the assistance of Louise Umutoni Bower, based on interviews conducted in Kigali, Rwanda in March, April and August 2018. Case published September 2018.

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