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

44 Pages Posted: 9 Feb 2006

See all articles by Sanjeev Gupta

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Luc Leruth

International Monetary Fund (IMF)

Luiz R. de Mello

OECD

Shamit Chakravarti

International Monetary Fund (IMF)

Date Written: May 2001

Abstract

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.

Keywords: transition economies, reform, size of government

JEL Classification: P21, E62, H87

Suggested Citation

Gupta, Sanjeev and Leruth, Luc and de Mello, Luiz R. and Chakravarti, Shamit, Transition Economies: How Appropriate is the Size and Scope of Government? (May 2001). Available at SSRN: https://ssrn.com/abstract=879526 or http://dx.doi.org/10.2139/ssrn.879526

Sanjeev Gupta (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Luc Leruth

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Luiz R. De Mello

OECD ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France
+33-1-45.24.87.52 (Phone)

Shamit Chakravarti

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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