Governments in developing countries often borrow to achieve socially desirable objectives and smooth consumption. But problems arise when borrowing is excessive relative to repayment capacity, when resources are expended inefficiently, and when revenues and expenditures are too inflexible to permit the conduct of countercyclical fiscal policy. This volume draws on international experience and the literature on fiscal sustainability to assist emerging economies address fiscal policy challenges. Further, it pays special attention to fiscal policy in Egypt, addressing such issues as debt management, social expenditures, civil service reform, and transparency and accountability of the budgetary process. Contributors: Pedro Alba, Richard Allen, Arup Banerji, Willem H. Buiter, Samiha Fawzy, Ahmed Galal, Heba Handoussa, Nadeem Ul Haque, Farrukh Iqbal, Alejandro Izquierdo, Nihal El Megharbel, Peter J. Montiel, Mustapha Nabli, Nivine El Orabi, Ugo Panizza, Sherine Al Shawarby.

AHMED GALAL is executive director and director of research of the Egyptian Center for Economic Studies (ECES). He has also been a staff member of the World Bank since 1984. He is the author (with Eliana Cardoso) of Monetary Policy and Exchange Rate Regimes: Options for the Middle East and (with Bernard Hoekman) of Regional Partners in Global Markets: Limits and Possibilities of the Euro-Med Agreements (CEPR, 1997). NADEEM UL HAQUE is a senior economist with the International Monetary Fund, where he has worked for over 20 years. He has authored and co-authored many books and articles about the economics of developing countries on topics such as fiscal and financial issues, public sector (including civil service) reform, government wages and corruption, migration, capital flight, and labor supply.