policies should be o§ered with less, but more concessional resources. This would also make it easier to deliver aid through NGOs bypassing the ìcorruptî recipient country governments, and would help punishing them without pun- ishing innocent citizens (who are already likely to su§er from the bad policy environment). Second, the amount of loan concessionality should depend upon the overall level of indebteness of a country; that more indebted countries should receive more concessional aid áows; and that the debt relief initiative should create the condition for less concessional aid packages. As in the previous case, this does not imply that by implementing such policy the donor community would reward highly indebted countries with more grants. The opposite is still more likely to be true. In fact, policymakers are more likely to have a preference for the present, putting a higher weight on the resources that they surely control (the current ones) vis ‡ vis to those that they might control (the future ones) should they remain in power. Finally, the grants versus loan choice is an easy one for the poorest countries. P roviding such countries with larger (but less concessional aid packages) would not only negatively affect their growth performance in the immediate, but also in the future through the accumulation of a stock of eventually unsustainable debt . Tifia is loans only, not grants (DOT 12 , Department of Transportation, “TIFIA”, ) The Transportation Infrastructure Finance and Innovation Act ( TIFIA) program provides Federal credit assistance in the form of direct l oans, loan guarantees, and standby lines of credit to finance surface transportation projects of national and regional significance. TIFIA credit assistance provides improved access to capital markets, flexible repayment terms, and potentially more favorable interest rates than can be found in private capital markets for similar instruments. TIFIA can help advance qualified, large-scale projects that otherwise might be delayed or deferred because of size, complexity, or uncertainty over the timing of revenues. Many surface transportation projects - highway, transit, railroad, intermodal freight, and port access - are eligible for assistance. Each dollar of Federal funds can provide up to $10 in TIFIA credit assistance - and leverage $30 in transportation infrastructure investment.
States CP States deficit spending is bad – they’ll have to be bailed out later WC 10 (The Wealth Cycle, “Fed Bailouts Feed State Spending Habits”, 11/3/10, ) The next fire the U.S. government will have to put ou t in trying to regain control of the failing economy is likely to be bankrupt state treasuries and cascading defaults on state and municipal bonds , according to a recent WSJ.com op-ed piece by banking analyst Meredith Whitney. Whitney claims federal bailouts of state governments are already going on. Currently
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