The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
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.