Transition Economies: How Appropriate is the Size and Scope of Government?

May 1, 2001

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

This paper assesses changes in the size and scope of government in 24 transition economies. Whereas these governments have retrenched in terms of public expenditures in relation to GDP, as well as public employment as a share of population, some indicators suggest that size remains high (e.g., rising indebtedness, a heavy regulatory burden, and prevalence of noncash transactions). At the same time, the scope of government activities-although evolving-has not necessarily become appropriate. This paper provides some recommendations for aligning the scope of government with the increasing market orientation of these economies.

Subject: Arrears, Education, Expenditure, Health, Health care, Labor, Public employment, Total expenditures

Keywords: Baltics, Central and Eastern Europe, Central Asia, Central Asia and the Caucasus, country, EU border state, government, government effectiveness, government employment, government spending, Health care, Public employment, reform, scope of government, size of government, tax authorities, Total expenditures, transition economies, transition economy, wage bill, WP

Pages:
44
Volume:
2001
DOI:
https://doi.org/10.5089/9781451847628.001
Issue:
055
Series:
Working Paper No. 2001/055
Stock No:
WPIEA0552001
ISBN:
9781451847628
ISSN:
1018-5941

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