Ruth Richardson talks about fiscal responsibility and the discipline that is needed in order to have a stable and efficient fiscal policy. She shares various professional anecdotes that took place during her years as New Zealand Minister of Finance and shares the strategies she successfully applied. According to Richardson, fiscal responsibility identifies the characteristics of a good fiscal policy, ensures frequent publication of proper financial accounts and gives a real long-term accountability. She also lists five principles which need to be applied in order to be fiscally responsible. Reducing public debt levels and maintaining them in balance over time are two of them. Furthermore, she points out that, although Guatemala has the knowledge of how fiscal responsibility can be achieved, it lacks the will and the involvement of the population.
Ruth Richardson
Ruth Richardson was New Zealand's Minister of Finance during the period of 1990 to 1993. She conducted the New Zealand's second wave of reforms, after the first one, that was directed by Roger Douglas in the mid 1980's. Richardson got her Law degree with Honours from Canterbury University. She's now the principal of Ruth Richardson [NZ] Ltd., a company that offers international consultancy and corporate governance services.
Digitization made by New Media - UFM. Guatemala, June 1997 Index: Lucía Bahr; synopsis: Sebastian del Buey; synopsis reviser: Daphne Ortiz; publication: Pedro David España
This work is licensed under a Creative Commons 3.0 License Este trabajo ha sido registrado con una licencia Creative Commons 3.0
Content
Initial credits
Presentation of Ruth Richardson by Mónica de Zelaya
Introduction by Ruth Richardson
Discipline of fiscal policy
Major source of destabilization
Legislation
Good budget practice
The legislative brief
Arguments for fiscal responsibility
Reforms
Transparency
Balanced-budget amendment
A code of fiscal responsibility
Fiscal responsibility
1. Requires adherence to principles
2. Ensures frequent publication
3. Long term with real accountability
Five principles
1. Reduce public debt
2. Maintain debt levels
3. Net worth
4. Fiscal risks
5. Predictability
Requirement to disclose
Fiscal strategy report
Economic and fiscal update
Balance sheet
Disclosures
Budget processes
What has changed about behavior?
Parliament
The role of the public
Results
Government misbehavior
Credibility
Opinion about Guatemala
Political will
Involvement
Final credits
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Universidad Francisco Marroquín
6 Calle final, zona 10
Edificio de la Escuela de Negocios
Oficina EN-103
Guatemala, Guatemala 01010
Teléfono (+502) 2338-7700 ext. 7849
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