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Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries

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  • Mr. Tapio Saavalainen
  • Joy Mylène ten Berge

Abstract

Quasi-fiscal deficits of public utility companies are common in all member countries of the Commonwealth of Independent States (CIS). They constitute a significant impediment to efficient resource allocation and endanger macroeconomic stability. This paper presents a simple framework for measuring and monitoring such deficits and highlights their macroeconomic relevance. It reviews the progress under IMF conditionality aimed at correcting these imbalances during 1993-2003. The paper suggests that the extensive conditionality under the IMF-supported programs has yielded only limited progress in reducing the energy sector's financial imbalances. In conclusion, different policy options are discussed in light of the lessons learned.

Suggested Citation

  • Mr. Tapio Saavalainen & Joy Mylène ten Berge, 2006. "Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries," IMF Working Papers 2006/043, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/043
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    References listed on IDEAS

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    1. Mr. Aleh Tsyvinski & Mr. Martin Petri & Mr. Günther Taube, 2002. "Energy Sector Quasi-Fiscal Activities in the Countries of the Former Soviet Union," IMF Working Papers 2002/060, International Monetary Fund.
    2. Mr. Clinton R. Shiells & Mr. John R Dodsworth & Mr. Paul Henri Mathieu, 2002. "Cross-Border Issues in Energy Trade in the CIS Countries," IMF Policy Discussion Papers 2002/013, International Monetary Fund.
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    Cited by:

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    2. Daniel Camos-Daurella & Antonio Estache & Mohamad M. Hamid, 2017. "Quasi-fiscal Deficits in the Electricity Sector of the Middle East and North Africa: Sources and Size," Working Papers ECARES ECARES 2017-47, ULB -- Universite Libre de Bruxelles.
    3. Huenteler,Joern Torsten & Hankinson,Denzel J. & Rosenthal,Nicole & Balabanyan,Ani & Kochnakyan,Arthur & Nguyen,Tu Chi & Rana,Anshul & Foster,Vivien, 2020. "Cost Recovery and Financial Viability of the Power Sector in Developing Countries : Insights from 15 Case Studies," Policy Research Working Paper Series 9136, The World Bank.
    4. Brownbridge, Martin & Canagarajah, Sudharshan, 2008. "Fiscal policy for growth and development in Tajikistan," Policy Research Working Paper Series 4532, The World Bank.
    5. Mr. Robert Tchaidze, 2007. "Quasi-Fiscal Deficit in Non-Financial Enterprises," IMF Working Papers 2007/010, International Monetary Fund.
    6. Kojima,Masami & Koplow,Doug, 2015. "Fossil fuel subsidies : approaches and valuation," Policy Research Working Paper Series 7220, The World Bank.
    7. International Monetary Fund, 2010. "Islamic Republic of Iran: Selected Issues Paper," IMF Staff Country Reports 2010/076, International Monetary Fund.
    8. Cecilia Briceño-Garmendia & Karlis Smits & Viven Foster, 2009. "Financing Public Infrastructure in Sub-Saharan Africa," World Bank Publications - Reports 28238, The World Bank Group.

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