Structural Funds and the 1992 Program in the European Community

Author/Editor:

James P. F. Gordon

Publication Date:

June 1, 1991

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Equity and efficiency justifications are found for the Community’s Structural Funds which are discovered to be carefully targeted at depressed regions, albeit with some horizontal inequities. If Fund transfers displace national assistance, then they may be misallocated by being tied to regional indicators. The recent doubling in size enhances the Funds’ ability to assist losers from the creation of a single European market in 1992. However, they fall short of constituting a safety net since they provide little automatic assistance to regions suffering negative shocks. Compensation of losers from the 1992 program would require an overhaul of the present allocation system, if not a further increase in scale.

Series:

Working Paper No. 1991/065

Subject:

Expenditure Labor National accounts Personal income Tax equity Tax policy Unemployment Unemployment rate

Notes:

Examines the rationale and operations of the Structural Funds of the European Community (EC).

English

Publication Date:

June 1, 1991

ISBN/ISSN:

9781451848601/1018-5941

Stock No:

WPIEA0651991

Pages:

34

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