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Public finances and economic transition

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  • Barbone, Luca
  • Polackova, Hana

Abstract

The authors analyze developments in general government spending and revenues for 26 former social economies for 1989-94. The data show that, rather than uniformly converting to a"Western European"norm, these reforming economies have followed a variety of patterns. Whether a country drifts toward heavy government spending seems to depend on its success at general economic reform and especially at dealing with the pressures for social protection. The authors empirically investigate spending patterns and the sustainability of revenues required to cover current government spending. They conclude that fiscal accounts will surely remain under pressure in most transition economies in the foreseeable future. They suggest involving the private sector in rationalizing and providing social services.

Suggested Citation

  • Barbone, Luca & Polackova, Hana, 1996. "Public finances and economic transition," Policy Research Working Paper Series 1585, The World Bank.
    • Handle: RePEc:wbk:wbrwps:1585
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Weisshaar, Natalia, 2010. "Poverty during transition: Household survey evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 123-145, June.
    2. World Bank, 2003. "Armenia : Public Expenditure Review," World Bank Publications - Reports 13926, The World Bank Group.
    3. Tilman Brück & Alexander M. Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants of Poverty during Transition: Household Survey Evidence from Ukraine," Discussion Papers of DIW Berlin 748, DIW Berlin, German Institute for Economic Research.
    4. Jorge Martinez-Vazquez & Robert McNab, 2000. "Tax Reform in The Tax Reform Experiment in Transitional Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0001, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. Jorge Martinez-Vazquez & Robert McNab, 1997. "Tax Reform in Transition Economies: Experiences and Lessons," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9706, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Marek Dabrowski & Magdalena Tomczynska, 2001. "Tax Reforms in Transition Economies – a Mixed Record and Complex Future Agenda," CASE Network Studies and Analyses 0231, CASE-Center for Social and Economic Research.
    7. Barseghyan, Levon & Guerdjikova, Ani, 2011. "Institutions and growth in limited access societies," Journal of Economic Theory, Elsevier, vol. 146(2), pages 528-568, March.
    8. Joanna Siwinska-Gorzelak, 2000. "Currency Crises and Fiscal Imbalances. The Transition Countries Perspective," CASE Network Studies and Analyses 0219, CASE-Center for Social and Economic Research.
    9. World Bank, 2003. "Public Expenditure Review for Armenia," World Bank Publications - Books, The World Bank Group, number 15086.
    10. Fakin, Barbara & de Crombrugghe, Alain, 1997. "Field adjustments in transition economies : social transfers and the efficiency of public spending - a comparison with OECD countries," Policy Research Working Paper Series 1803, The World Bank.

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