Efficiency Cost of Fiscal Equalization: The Case of Belarus
AbstractBelarus is the last command economy left standing in Europe. Because it still has an option of a gradual transition ("Chinese style'"), the study of Belarus’ case can present insights on the counterfactual to the "shock therapy" approach undertaken by the rest of the Central and Eastern European countries. However, the viability of the existing system hinges on its ability to weather short-term external economic shocks and to adjust to a significant list of medium term structural challenges. Now that more than half of Belarus’ consolidated public expenditures, excluding social security, takes place at the subnational levels of government, its ability to adjust largely hinges on the incentives that the system of intergovernmental relations presents to subnational officials. Belarus' experience with the recent recurrent macro-economic turmoil suggests that the incentives embedded in the system of intergovernmental fiscal transfers might hinder its ability to undergo fiscal adjustment and consolidation. Thus, since 2008, Belarus underwent one of the largest contractions in the size of government in the region, with public expenditures contracting by 12.9 percentage points of GDP and finally dropping to 37 percent of GDP at the end of 2011 (Figure 1).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper1401.
Length: 26 pages
Date of creation: 02 Jan 2014
Date of revision:
Contact details of provider:
Web page: http://aysps.gsu.edu/isp/index.html
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-02-02 (All new papers)
- NEP-CWA-2014-02-02 (Central & Western Asia)
- NEP-PBE-2014-02-02 (Public Economics)
- NEP-TRA-2014-02-02 (Transition Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Benson).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.