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Small Governments, Big Ambitions: Fiscal Policy in East Asia and Pacific
Paperback
EconomicsGeneral Political ScienceSocial Movements
ISBN13: 9781464823183
Publisher: World Bank Publications
Published: Sep 4 2026
Pages: 298
Weight: 1.45
Height: 0.71 Width: 7.01 Depth: 9.91
Language: English
Small Governments, Big Ambitions: Fiscal Policy in East Asia and Pacific argues that, over the past three decades, most economies in the East Asia and Pacific region have followed a growth-enabling approach to fiscal policy, taxing little and spending within their means, especially on infrastructure. Although this strategy has supported growth and macroeconomic stability--and has propelled much of the region to middle-income status--it also has led to underinvestment in education, health, social protection, and climate adaptation. Consequently, growth has slowed and become less resilient and less inclusive, putting the region's high-income aspirations at risk.
To achieve its development ambitions, the region must forge a new, growth-enhancing fiscal compact. The state will need to play a stronger role in boosting human capital and upgrading infrastructure to support the shift to more skill- and technology-intensive growth. It must also protect people and the economy from shocks in a region that is rapidly aging and increasingly exposed to extreme climate events. In each case, public spending must be paired with institutional and sectoral reforms that crowd-in pr
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