On this issue the review drew from best practices in the individual
sectors examined. The first issue in O&M arrangements has already
been mentioned: the need for clear ownership of the infrastructure
and accountability for who will operate and maintain the project.
The third issue, which is not always elaborated as much, is the need
for a formal backstopping arrangement if the community is expected
to carry out O&M. A good system is needed to give the community
support when it has problems and when issues arise, for example
the issue of mobilization of recurrent financing....
To remedy these evils, the authorities at Amsterdam resolved to
have recourse to that system of bank payments, which had so long been
in use at Venice. This was the origin of the BANK OF AMSTERDAM. The
original subscribers to the bank paid into its vaults certain sums in the
current coin, for which they received a credit on its books equivalent to
the intrinsic value of the deposit.
The Directors had instant recourse to their old and tried expedient
in cases of the like nature, namely, a sudden reduction of discounts. But
the alarm continued to increase; the run went on; the stock of specie
began to diminish with great rapidity; and the Directors sent word to the
minister, that there was great reason to apprehend they would be driven
to an actual stoppage of specie payments.