Andrews, Emily S., Rashid, Mansoora, 1996, The Financing of Pension Systems in Central and Eastern Europe, World Bank Technical Paper No, 339.
Branco, Marta de Castello, 2000, Pension Reform in the Baltics, Russia, and other Countries of the Former Soviet Union (BRO), IMF Working Paper WP/98/11.
Cangiano, Marco, Cottarelli, Carlo, Cubeddu, Luis, 1998, Pension Developments and Reforms in Transition Economies, IMF Working Paper WP/98/151.
Guin-Su, Maria Teresa, Yamada, Gustavo, Corbacho, Ana, 2000, The Effects of Public Spending in Education and Health on Social Development Indicators: A Panel Data Analysis, IMF Working Paper.
Gupta, Sanjeev, 1998, Economic Transition and Social Protection—Issues and Agenda for reform, IMF Paper on Policy Analysis and Assessment.
Gupta, Sanjeev, Davoodi, Hamid, Tiongson, Erwin, 2000, Corruption and the Provision of Health Care and Education Services, IMF Working Paper WP/00/116.
Gupta, Sanjeev, Verhoeven, Marijn, Tiongson, Erwin, 1999, Does Higher Government Spending Buy Better Results in Education and Health Care?, IMF Working Paper WP/99/21.
Gupta, Sanjeev, Christian Schiller, Henry Ma, 1999, Privatization, Social Impact, and Social Safety Nets, IMF Working Paper WP/99/68.
Gupta, Sanjeev, Dicks-Mireaux, Louis, Khemani, Ritha, McDonald, Calvin, and Verhoeven, Marijn, 2000, Social Issues in IMF-Supported Programs, IMF Occasional Paper No. 191.
Keane, Michael, Prasad, Eswar, 2000, Inequality, Transfers and Growth - New Evidence from the Economic Transition in Poland, Working Paper WP/00/117.
Kolodko, Grzegorz, 2000, Globalization and Catching-Up-From Recession to Growth in Transition Economies, IMF Working Paper WP/00/100.
Milanovic, Branco, 1998, “Income, Inequality, and Poverty During the Transition from Planned to Market Economy,” World Bank Regional Sector Study 1998-2.
Schneider, Friedrich, Enste, Dominik, 2000, Shadow Economies Around the World—Size, Causes, and Consequences, IMF Working Paper WP/00/26.
Paper presented at the East-West Conference on “Completing Transition: The Main Challenges,” November 6–7, 2000, in Vienna, Austria, sponsored by the Oesterreichische Nationalbank and the Joint Vienna Institute.
While there is consensus that an extreme inequality of income, wealth, and opportunity is undesirable and that efforts should be made to improve the situation of the poorest members in society, the question of what exactly constitutes a “fair” distribution of income and whether greater income equality is desirable for its own sake must remain open. IMF (1998).
The average public spending on education and health care relative to GDP in the BRO countries fell from 6.4 and 3.5 percent in 1992 to 4.1 and 2.7 percent 1996, respectively. Yet, even these figures understate the real resource squeeze in these sectors in light of the large contraction in real GDP since the onset of the transition process. Gupta (1998).
In 1993, on average 60 percent of those in CEE countries who received pension benefits for their first year had not yet reached the age of 60. In Croatia, an extreme case, 90 percent of the first-year pensioners were younger than 60. Similarly, in most CEE countries between 20 and 25 percent of all pensioners receive disability benefits, led by Poland where, in 1993, nearly 37 percent of all pensioners received disability benefits. See Andrews and Rashid (1996).
It has been estimated that in the first half of the 1990s the share of the unofficial economy in CEE countries increased on the average from less than 18 to over 31 percent of GDP. In BRO countries this development was even more pronounced, where the average share is estimated to have grown from less than 17 to over 43 percent of GDP. For an overview of estimates see Schneider and Enste (2000).
As calculated for the BRO countries in Castello Branco (1998).
In principle, it is not uncommon for revenue systems to have certain institutions charge fees from those who use specific services and therefore should cover the related costs (equivalence principle). If well designed, including provisions for those who may not be able to pay the fee, a user-fees system has incentive advantages over pure tax-financing.
The sample of countries comprises: Albania, Bosnia Herzegovina, Bulgaria, Czech Republic, Georgia, Lithuania, Moldova, Poland, Romania and Slovak Republic, Slovenia. Information sources are mainly internal IMF staff reports and IMF Working Papers.
Countries outside the selected sample who are undertaking comprehensive pension reforms are, for example, Estonia, Latvia, and Kazakhstan.
The Social Fund’s “netting out” procedures have at times taken bizarre forms indeed: Pension arrears not only canceled pensioners’ overdue electricity bills, which in turn canceled the electricity company’s contribution arrears, but payroll taxes were sometimes also settled in goods like umbrellas, which were then given to pensioners in lieu of their benefits.
For example, in 1993 the Kyrgyz Republic replaced the general consumer subsidy for bread with cash transfers to pensioners and families with many young children.