A Decade of Fiscal Transition
Transition literature has emphasized stabilization and enterprise restructuring. Both cross-country analyses and country-specific studies have tended to focus on fiscal stabilization and its indicators, highlighting the importance of quantitative f...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/05/1783727/decade-fiscal-transition http://hdl.handle.net/10986/14267 |
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okr-10986-14267 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ACCOUNTABILITY ACCOUNTING BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BENCHMARK BUDGET DEFICITS BUDGET MANAGEMENT BUDGET REVENUES BUDGETARY FUNDS BUDGETARY RESOURCES CAPITAL EXPENDITURES CENTRAL PLANNING CENTRALLY PLANNED ECONOMIES CONSOLIDATION CURRENT EXPENDITURES DEBT DEVELOPMENT INDICATORS DEVELOPMENT STRATEGY ECONOMIC GROWTH ECONOMIC OBJECTIVES ECONOMIC PERFORMANCE ECONOMIC RISKS ECONOMICS ECONOMISTS EMPLOYMENT ENERGY EFFICIENCY ENTERPRISE RESTRUCTURING EXCHANGE RATE EXPENDITURE EXPENDITURE MANAGEMENT EXPENDITURES FINANCIAL CRISIS FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FISCAL FISCAL DEFICIT FISCAL DEFICITS FISCAL MANAGEMENT FISCAL POLICIES FISCAL POLICY FISCAL REFORM GDP GOVERNMENT ACCOUNTING SYSTEMS GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SIZE HEALTH CARE SERVICES HEALTH INDICATORS HEALTH OUTCOMES HEALTH PROBLEMS HEALTH SECTOR HEALTH SERVICES HEALTH WORKERS HOUSING HUMAN CAPITAL HUMAN CAPITAL INVESTMENTS IMPLICIT SUBSIDIES INCOME INCOME INEQUALITY INCOME LEVELS INEFFICIENCY INFLATION INFORMAL PAYMENTS INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTITUTIONAL WEAKNESSES INSURANCE INVESTMENT EXPENDITURES LABOR FORCE LARGE PUBLIC ENTERPRISES LEGAL STRUCTURE LIFE EXPECTANCY LOW INCOME MACROECONOMIC STABILIZATION MEDICAL CARE MIDDLE INCOME COUNTRIES NATIONAL GOVERNMENTS OIL OIL PRICES PENSIONS PER CAPITA INCOME PHYSICIANS POLICY MAKERS POLICY RESEARCH POLITICAL CONSENSUS POLITICAL ECONOMY PRIVATE SECTOR PRIVATE SECTOR FINANCING PRIVATE SECTOR GROWTH PROFITABILITY PUBLIC DEBT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURES PUBLIC FINANCING PUBLIC GOODS PUBLIC HEALTH PUBLIC HEALTH CARE PUBLIC HEALTH EXPENDITURES PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING REAL WAGES RESOURCE ALLOCATION REVENUE COLLECTION REVENUE MOBILIZATION SAVINGS SHORT TERM DEBT SIDE PAYMENTS SIZE OF GOVERNMENT SOCIAL CAPITAL SOCIAL COSTS SOCIAL INSURANCE SOCIAL PROTECTION STATE CONTROL STATE ENTERPRISES STATE OWNERSHIP STATE RESOURCES STATE SECTOR STATE-OWNED ENTERPRISES STREAMS TAX ADMINISTRATION TAX COLLECTION TAX COLLECTIONS TAX POLICY TAX REFORM TAX REGIME TAX REVENUES TAX SYSTEMS TAXATION TERMS OF TRADE TIME SERIES TOTAL EXPENDITURES TRANSITION ECONOMIES TRANSPARENCY TRANSPORT TURNOVER TAXES URBAN AREAS WAGES FISCAL ADJUSTMENTS PUBLIC EXPENDITURES ECONOMIC GROWTH VULNERABLE GROUPS SOCIAL ASSISTANCE PROGRAMS PUBLIC SERVICES PUBLIC INVESTMENTS GOVERNMENT SPENDING POLICY INCOME LEVELS ECONOMIC RECOVERY POLITICAL ENVIRONMENT FISCAL POLICY TARGETED ASSISTANCE TARGETED SUBSIDIES TRANSITIONAL ECONOMIES INCENTIVES FISCAL MANAGEMENT QUALITATIVE ANALYSIS |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BENCHMARK BUDGET DEFICITS BUDGET MANAGEMENT BUDGET REVENUES BUDGETARY FUNDS BUDGETARY RESOURCES CAPITAL EXPENDITURES CENTRAL PLANNING CENTRALLY PLANNED ECONOMIES CONSOLIDATION CURRENT EXPENDITURES DEBT DEVELOPMENT INDICATORS DEVELOPMENT STRATEGY ECONOMIC GROWTH ECONOMIC OBJECTIVES ECONOMIC PERFORMANCE ECONOMIC RISKS ECONOMICS ECONOMISTS EMPLOYMENT ENERGY EFFICIENCY ENTERPRISE RESTRUCTURING EXCHANGE RATE EXPENDITURE EXPENDITURE MANAGEMENT EXPENDITURES FINANCIAL CRISIS FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FISCAL FISCAL DEFICIT FISCAL DEFICITS FISCAL MANAGEMENT FISCAL POLICIES FISCAL POLICY FISCAL REFORM GDP GOVERNMENT ACCOUNTING SYSTEMS GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SIZE HEALTH CARE SERVICES HEALTH INDICATORS HEALTH OUTCOMES HEALTH PROBLEMS HEALTH SECTOR HEALTH SERVICES HEALTH WORKERS HOUSING HUMAN CAPITAL HUMAN CAPITAL INVESTMENTS IMPLICIT SUBSIDIES INCOME INCOME INEQUALITY INCOME LEVELS INEFFICIENCY INFLATION INFORMAL PAYMENTS INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTITUTIONAL WEAKNESSES INSURANCE INVESTMENT EXPENDITURES LABOR FORCE LARGE PUBLIC ENTERPRISES LEGAL STRUCTURE LIFE EXPECTANCY LOW INCOME MACROECONOMIC STABILIZATION MEDICAL CARE MIDDLE INCOME COUNTRIES NATIONAL GOVERNMENTS OIL OIL PRICES PENSIONS PER CAPITA INCOME PHYSICIANS POLICY MAKERS POLICY RESEARCH POLITICAL CONSENSUS POLITICAL ECONOMY PRIVATE SECTOR PRIVATE SECTOR FINANCING PRIVATE SECTOR GROWTH PROFITABILITY PUBLIC DEBT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURES PUBLIC FINANCING PUBLIC GOODS PUBLIC HEALTH PUBLIC HEALTH CARE PUBLIC HEALTH EXPENDITURES PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING REAL WAGES RESOURCE ALLOCATION REVENUE COLLECTION REVENUE MOBILIZATION SAVINGS SHORT TERM DEBT SIDE PAYMENTS SIZE OF GOVERNMENT SOCIAL CAPITAL SOCIAL COSTS SOCIAL INSURANCE SOCIAL PROTECTION STATE CONTROL STATE ENTERPRISES STATE OWNERSHIP STATE RESOURCES STATE SECTOR STATE-OWNED ENTERPRISES STREAMS TAX ADMINISTRATION TAX COLLECTION TAX COLLECTIONS TAX POLICY TAX REFORM TAX REGIME TAX REVENUES TAX SYSTEMS TAXATION TERMS OF TRADE TIME SERIES TOTAL EXPENDITURES TRANSITION ECONOMIES TRANSPARENCY TRANSPORT TURNOVER TAXES URBAN AREAS WAGES FISCAL ADJUSTMENTS PUBLIC EXPENDITURES ECONOMIC GROWTH VULNERABLE GROUPS SOCIAL ASSISTANCE PROGRAMS PUBLIC SERVICES PUBLIC INVESTMENTS GOVERNMENT SPENDING POLICY INCOME LEVELS ECONOMIC RECOVERY POLITICAL ENVIRONMENT FISCAL POLICY TARGETED ASSISTANCE TARGETED SUBSIDIES TRANSITIONAL ECONOMIES INCENTIVES FISCAL MANAGEMENT QUALITATIVE ANALYSIS Alam, Asad Sundberg, Mark A Decade of Fiscal Transition |
| relation |
Policy Research Working Paper;No.2835 |
| description |
Transition literature has emphasized
stabilization and enterprise restructuring. Both
cross-country analyses and country-specific studies have
tended to focus on fiscal stabilization and its indicators,
highlighting the importance of quantitative fiscal
adjustment to stabilization outcomes. Less attention has
been paid to the qualitative dimensions of fiscal adjustment
in transition. The authors take stock of the extent to which
fiscal adjustment has occurred during the first decade of
transition in both qualitative and quantitative dimensions.
They define quality as the extent to which: (1) pro-growth
expenditure essential for creating future economic and
social assets are maintained; (2) pro-poor expenditure, such
as poverty-targeted transfers, necessary to ensure income
for the poor and vulnerable are adequately provided; and (3)
fiscal risks, impinging on both expenditure and revenue, are
managed through transition. The authors conclude that while
the quantitative magnitude of the fiscal adjustment was
dramatic, the quality of this adjustment has compromised the
social and economic objectives of transition, particularly
in the Commonwealth of Independent States (CIS). They draw
four main conclusions: Investments in public services fell
in both absolute and relative terms. Reduced spending on
government transfers contributed to a sharp increase in
income inequality in the CIS. Fiscal risks increased during
the transition. Initial conditions allowed Central European
and Baltic countries to maintain higher expenditures, which
may have contributed to their faster economic recovery and
political support for the reforms. The authors argue that
the challenge today for fiscal policy in these countries is
to facilitate the transition-particularly in reallocating
resources from large state-owned enterprises to new small
and medium-size firms, and providing priority public
services and targeted transfers to assist those adversely
affected by transition and reverse the deterioration in
social outcomes. The interplay between fiscal policies and
institutional arrangements is increasingly important as
transition economies embark on their second decade of
reforms. In particular, incentives embedded in the
institutional arrangements for fiscal management needs to be
strengthened so that policies, resources, and outcomes can
be better aligned, and the fiscal adjustment is consistent
with qualitative considerations. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Alam, Asad Sundberg, Mark |
| author_facet |
Alam, Asad Sundberg, Mark |
| author_sort |
Alam, Asad |
| title |
A Decade of Fiscal Transition |
| title_short |
A Decade of Fiscal Transition |
| title_full |
A Decade of Fiscal Transition |
| title_fullStr |
A Decade of Fiscal Transition |
| title_full_unstemmed |
A Decade of Fiscal Transition |
| title_sort |
decade of fiscal transition |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/05/1783727/decade-fiscal-transition http://hdl.handle.net/10986/14267 |
| _version_ |
1764429909564850176 |
| spelling |
okr-10986-142672021-04-23T14:03:20Z A Decade of Fiscal Transition Alam, Asad Sundberg, Mark ACCOUNTABILITY ACCOUNTING BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BENCHMARK BUDGET DEFICITS BUDGET MANAGEMENT BUDGET REVENUES BUDGETARY FUNDS BUDGETARY RESOURCES CAPITAL EXPENDITURES CENTRAL PLANNING CENTRALLY PLANNED ECONOMIES CONSOLIDATION CURRENT EXPENDITURES DEBT DEVELOPMENT INDICATORS DEVELOPMENT STRATEGY ECONOMIC GROWTH ECONOMIC OBJECTIVES ECONOMIC PERFORMANCE ECONOMIC RISKS ECONOMICS ECONOMISTS EMPLOYMENT ENERGY EFFICIENCY ENTERPRISE RESTRUCTURING EXCHANGE RATE EXPENDITURE EXPENDITURE MANAGEMENT EXPENDITURES FINANCIAL CRISIS FINANCIAL INCENTIVES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FISCAL FISCAL DEFICIT FISCAL DEFICITS FISCAL MANAGEMENT FISCAL POLICIES FISCAL POLICY FISCAL REFORM GDP GOVERNMENT ACCOUNTING SYSTEMS GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SIZE HEALTH CARE SERVICES HEALTH INDICATORS HEALTH OUTCOMES HEALTH PROBLEMS HEALTH SECTOR HEALTH SERVICES HEALTH WORKERS HOUSING HUMAN CAPITAL HUMAN CAPITAL INVESTMENTS IMPLICIT SUBSIDIES INCOME INCOME INEQUALITY INCOME LEVELS INEFFICIENCY INFLATION INFORMAL PAYMENTS INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTITUTIONAL WEAKNESSES INSURANCE INVESTMENT EXPENDITURES LABOR FORCE LARGE PUBLIC ENTERPRISES LEGAL STRUCTURE LIFE EXPECTANCY LOW INCOME MACROECONOMIC STABILIZATION MEDICAL CARE MIDDLE INCOME COUNTRIES NATIONAL GOVERNMENTS OIL OIL PRICES PENSIONS PER CAPITA INCOME PHYSICIANS POLICY MAKERS POLICY RESEARCH POLITICAL CONSENSUS POLITICAL ECONOMY PRIVATE SECTOR PRIVATE SECTOR FINANCING PRIVATE SECTOR GROWTH PROFITABILITY PUBLIC DEBT PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURES PUBLIC FINANCING PUBLIC GOODS PUBLIC HEALTH PUBLIC HEALTH CARE PUBLIC HEALTH EXPENDITURES PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING REAL WAGES RESOURCE ALLOCATION REVENUE COLLECTION REVENUE MOBILIZATION SAVINGS SHORT TERM DEBT SIDE PAYMENTS SIZE OF GOVERNMENT SOCIAL CAPITAL SOCIAL COSTS SOCIAL INSURANCE SOCIAL PROTECTION STATE CONTROL STATE ENTERPRISES STATE OWNERSHIP STATE RESOURCES STATE SECTOR STATE-OWNED ENTERPRISES STREAMS TAX ADMINISTRATION TAX COLLECTION TAX COLLECTIONS TAX POLICY TAX REFORM TAX REGIME TAX REVENUES TAX SYSTEMS TAXATION TERMS OF TRADE TIME SERIES TOTAL EXPENDITURES TRANSITION ECONOMIES TRANSPARENCY TRANSPORT TURNOVER TAXES URBAN AREAS WAGES FISCAL ADJUSTMENTS PUBLIC EXPENDITURES ECONOMIC GROWTH VULNERABLE GROUPS SOCIAL ASSISTANCE PROGRAMS PUBLIC SERVICES PUBLIC INVESTMENTS GOVERNMENT SPENDING POLICY INCOME LEVELS ECONOMIC RECOVERY POLITICAL ENVIRONMENT FISCAL POLICY TARGETED ASSISTANCE TARGETED SUBSIDIES TRANSITIONAL ECONOMIES INCENTIVES FISCAL MANAGEMENT QUALITATIVE ANALYSIS Transition literature has emphasized stabilization and enterprise restructuring. Both cross-country analyses and country-specific studies have tended to focus on fiscal stabilization and its indicators, highlighting the importance of quantitative fiscal adjustment to stabilization outcomes. Less attention has been paid to the qualitative dimensions of fiscal adjustment in transition. The authors take stock of the extent to which fiscal adjustment has occurred during the first decade of transition in both qualitative and quantitative dimensions. They define quality as the extent to which: (1) pro-growth expenditure essential for creating future economic and social assets are maintained; (2) pro-poor expenditure, such as poverty-targeted transfers, necessary to ensure income for the poor and vulnerable are adequately provided; and (3) fiscal risks, impinging on both expenditure and revenue, are managed through transition. The authors conclude that while the quantitative magnitude of the fiscal adjustment was dramatic, the quality of this adjustment has compromised the social and economic objectives of transition, particularly in the Commonwealth of Independent States (CIS). They draw four main conclusions: Investments in public services fell in both absolute and relative terms. Reduced spending on government transfers contributed to a sharp increase in income inequality in the CIS. Fiscal risks increased during the transition. Initial conditions allowed Central European and Baltic countries to maintain higher expenditures, which may have contributed to their faster economic recovery and political support for the reforms. The authors argue that the challenge today for fiscal policy in these countries is to facilitate the transition-particularly in reallocating resources from large state-owned enterprises to new small and medium-size firms, and providing priority public services and targeted transfers to assist those adversely affected by transition and reverse the deterioration in social outcomes. The interplay between fiscal policies and institutional arrangements is increasingly important as transition economies embark on their second decade of reforms. In particular, incentives embedded in the institutional arrangements for fiscal management needs to be strengthened so that policies, resources, and outcomes can be better aligned, and the fiscal adjustment is consistent with qualitative considerations. 2013-06-27T20:12:53Z 2013-06-27T20:12:53Z 2002-05 http://documents.worldbank.org/curated/en/2002/05/1783727/decade-fiscal-transition http://hdl.handle.net/10986/14267 English en_US Policy Research Working Paper;No.2835 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |