Developing Public Finance in Emerging Market Economies [antikvár]

Foreword In February 1993, the Institute for EastWest Studies held a conference on "Public Finance Reform in the Transitional Countries of East Central Europe" in the Czech town of Rez. The purpose of this conference was to organize a group of regional experts to discuss the formidable problems facing East Central Europe during its difficult transition period. It was intended that a cross-fertilization of ideas among the experts would provide some framework for future long-term reforms. A critical component of the transition to market economies of these countries is undoubtedly reform of the state budget. Major budget restructuring is badly needed in order to achieve fiscal balances and to promote the efficient use of financial resources while improving the government's ability to provide better-targeted social services. An introductory chapter presents many of the themes that arose during the discussions and ties together the papers, which are updated and revised versions of those presented at the conference. The participants observed that in the course of economic transition, the fast-track reform countries in the region, with the exception of the Czech Republic, have run into growing imbalances in their national budgets. These countries are experiencing a reduction in real GDP, a decrease in tax revenues, and high unemployment. This will lead to continued transitional deficits that are unlikely to improve until a period of sustained growth can be achieved. With the expenditure side of the budget being reduced by 30%-45% in real terms, due in large part to subsidy cuts, the short-term problem would appear to come on the revenue side. However, in the long term, it was decided that deep structural reform on the expenditure side would prove to be a more challenging obstacle for these governments. I believe that this volume should command the attention of both regional policy makers and analysts as an up-to-date assessment of the difficult but crucial goal of achieving macroeconomic stabilization during the first years of transition. Anthony M. Solomon Chairman, lEWS Economics Program January 1994