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Comparative Approach on Education and Healthcare in Romania and Bulgaria as Beneficiaries of the IMF Financial Assistance

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  • Armenia ANDRONICEANU
  • Gurgen OHANYAN

Abstract

Global financial crisis influenced almost all sectors of countries, affecting significantly the social sectors such as education and healthcare. Many countries could not solely withstand adverse effects of recent crisis and resorted to the International Monetary Fund (IMF) for financial assistance. Given the large criticism of the IMF for neglecting social effects of its bailout conditionality, this paper contains an analysis of its impact on Romanian education and healthcare during the 6 years. Moreover, Romania has been largely criticized for inefficient use of available resources, poor working conditions, low salaries which contribute to mass migration of health and education employees. The research methodology is based on propensity scores in order to identify a counterfactual with similar pre-crisis economic characteristics and by comparative approach reveal whether the IMF programs have been effective in terms of education and healthcare. By selecting Bulgaria as a counterfactual for with-without approach based on proximity of propensity scores, it is revealed that IMF participation has had negative effects on Romanian education and healthcare by decreasing them more than in Bulgaria with selfconditioning. Our findings argue that Romanian authorities should be aware of negative effects of IMF predominantly neo-liberal measures to recover economy, since they are likely to hurt social sector in short and medium-term periods.

Suggested Citation

  • Armenia ANDRONICEANU & Gurgen OHANYAN, 2016. "Comparative Approach on Education and Healthcare in Romania and Bulgaria as Beneficiaries of the IMF Financial Assistance," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2016(26), pages 25-48, June.
  • Handle: RePEc:rom:rampas:v:2016:y:2016:i:26:p:25-48
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    References listed on IDEAS

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    1. Sorin Gabriel ANTON, 2012. "Financing Health Care In Romania And Implications On The Access To Health Services," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 12(1(15)), pages 195-200, June.
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    3. Oana-Matilda SABIE & Armenia ANDRONICEANU, 2012. "Persuasive Communication At The Academic Level And How To Make It More Effective," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2012(18), pages 26-52, June.
    4. Oberdabernig, Doris A., 2013. "Revisiting the Effects of IMF Programs on Poverty and Inequality," World Development, Elsevier, vol. 46(C), pages 113-142.
    5. Muhammet Bas & Randall Stone, 2014. "Adverse selection and growth under IMF programs," The Review of International Organizations, Springer, vol. 9(1), pages 1-28, March.
    6. Reeves, Aaron & McKee, Martin & Basu, Sanjay & Stuckler, David, 2014. "The political economy of austerity and healthcare: Cross-national analysis of expenditure changes in 27 European nations 1995–2011," Health Policy, Elsevier, vol. 115(1), pages 1-8.
    7. Garuda, Gopal, 2000. "The Distributional Effects of IMF Programs: A Cross-Country Analysis," World Development, Elsevier, vol. 28(6), pages 1031-1051, June.
    8. Nooruddin, Irfan & Simmons, Joel W., 2006. "The Politics of Hard Choices: IMF Programs and Government Spending," International Organization, Cambridge University Press, vol. 60(04), pages 1001-1033, October.
    9. Kentikelenis, Alexander E. & Stubbs, Thomas H. & King, Lawrence P., 2015. "Structural adjustment and public spending on health: Evidence from IMF programs in low-income countries," Social Science & Medicine, Elsevier, vol. 126(C), pages 169-176.
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    Keywords

    : Romania; Bulgaria; IMF; education; healthcare;

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