Hidden Debt - Solutions to Avert the Next Financial Crisis in South Asia - Policy and PPP Fiscal Risk Analysis

Jul 20, 2026

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Hidden Debt: Solutions to Avert the Next Financial Crisis in South Asia examines fiscal and economic risks stemming from hidden liabilities across South Asia, with emphasis on public-private partnerships. The report builds an analytical framework, presents empirical findings, and translates evidence into policy recommendations. It focuses on how PPP efficiency gains interact with contingent liabilities, early termination risks, and contract design features that influence distress. The work also provides references and methodological annexes to support assessing value at risk and variable definitions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages197

Reading Time8 h 16 min

Contents

Executive Summary

Spotlight ES.1

Abbreviations

Overview

Analytical Framework

Empirical Findings

Policy Recommendations

Notes

References

1 Public-Private Partnerships in South Asia: Managing the Fiscal Risks from Hidden Liabilities While Delivering Efficiency Gains

South Asia De v elopmen t Matter s Hidden Debt Solutions to Avert the Next Financial Crisis in South Asia Martin Melecky Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Hidden Debt Hidden Debt Solutions to Avert the Next Financial Crisis in South Asia Martin Melecky © 2021 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; [Internet: www.worldbank.org](Internet: www.worldbank.org) Some rights reserved 1 2 3 4 24 23 22 21 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) [http://creativecommons.org/licenses/by/3.0/igo. Under](http://creativecommons.org/licenses/by/3.0/igo. Under) the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: Melecky, Martin. 2021. Hidden Debt: Solutions to Avert the Next Financial Crisis in South Asia. South Asia Development Matters. Washington, DC: World Bank. doi:10 . 1596/978-1-4648-1667-3 . License: Creative Commons Attribution CC BY 3.0 IGO Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bank shall not be liable for any content or error in this translation. Adaptations—If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation are the sole responsibility of the author or authors of the adaptation and are not endorsed by The World Bank. Third-party content—The World Bank does not necessarily own each component of the content contained within the work. The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with you. If you wish to re-use a component of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; [e-mail: pubrights@worldbank.org](e-mail: pubrights@worldbank.org). ISBN (paper): 978-1-4648-1667-3 ISBN (electronic): 978-1-4648-1668-0 DOI: 10. 1596/978-1-4648-1667-3 Cover design: Sergi

FAQs

What is the report’s main focus in South Asia?

The report focuses on hidden liabilities and the fiscal and economic risks they create in South Asia, especially in the context of public-private partnerships.

How does the report link public-private partnerships to financial risk?

It analyzes how PPP efficiency gains can be balanced against risks and liabilities, including contingent liabilities and fiscal exposure from events such as early termination.

What types of policy output does the report provide?

It offers policy recommendations derived from an analytical framework and empirical findings, supported by methodological notes and annexes such as value-at-risk methodology.

Jul 20, 2026

Upload by Ophelia