The Age of Austerity: A Review of Public Expenditures and Adjustment Measures in 181 Countries
60 Pages Posted: 5 May 2013
Date Written: March 24, 2013
This paper: (i) examines the latest IMF government spending projections for 181 countries by comparing the four distinct periods of 2005-07 (pre-crisis), 2008-09 (crisis phase I: fiscal expansion), 2010-12 (crisis phase II: onset of fiscal contraction) and 2013-15 (crisis phase III: intensification of fiscal contraction); (ii) reviews 314 IMF country reports in 174 countries to identify the main adjustment measures considered in high-income and developing countries; (iv) discusses the threats of austerity to development goals and social progress; and (v) calls for urgent action by governments to adopt alternative and equitable policies for socio-economic recovery.
Keywords: public expenditures, fiscal consolidation, fiscal contraction, austerity measures, crisis recovery, social impacts, wage bill, subsidies, pension reforms, labor flexibilization, rationalization social protection
JEL Classification: H5, H12, O23, H5, I3, J3
Suggested Citation: Suggested Citation