Popular Resistance - In honor of the Bank of North Dakota’s centennial anniversary, here is an excellent academic report from Cornell University that includes a detailed case study of BND’s 2015 Infrastructure Loan Fund. The report examines the “unique benefits of public banks and explores strategies for the implementation of similar structured institutions in New York State and the broader US context.” Prepared by Shareef M. Hussam for Professor Mildred Warner at Cornell’s Department of City and Regional Planning, it provides strong academic reinforcement for advocates’ testimony, concluding:
“The public banking model offers several lessons for governmental entities seeking to affordably and sustainably finance infrastructure. First, funds for infrastructure investment should not be separated by sector, but rather commingled to enable cross-subsidization. Second, by pooling municipal capital and resources into an umbrella institution, local governments could access cheaper financing and improve their ability to compete for federal and state grants. Third, the institution should have profit motive, market discipline, political independence, and good governance. Through implementation of these strategies, it may be possible to sustainably finance critical infrastructure through public banking.”
The report continues:
“Despite being owned and managed by the public sector, the governance structures and aims of BND often mirror those in the private sector – there is a still a profit motive, although driven not by shareholder interests but by citizen interests. Although members of the Industrial Commission and Advisory Board are appointed by the Governor, the management of BND has been described as “professional, conservative, and independent of political forces, in similar ways to private banks,” and BND financial accounts are separate from those of other governmental entities engaged in more politically sensitive projects such as public housing or mass transit
No comments:
Post a Comment