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Public Finance in a Changing World: Introduction and Summary

In: Public Finance in a Changing World

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  • Peter Birch Sørensen

Abstract

In recent years many governments throughout the world have struggled to adapt their fiscal systems to rapidly changing circumstances. This process is perhaps most obvious in the former socialist countries of Eastern Europe. Under the previous socialist regimes governments derived a large part of their revenues from the profits of state-owned enterprises, and many important public services were provided by the enterprises directly to their employees rather than being delivered via the public budget. With the transition to a market-oriented economic system based primarily on private enterprise, Eastern European governments have had to design new systems of taxation and social security almost from scratch, often in a very difficult and unstable environment. The changing political landscape in Eastern Europe has also led to the emergence of new nations and jurisdictions, thereby raising new challenges of intergovernmental fiscal coordination.

Suggested Citation

  • Peter Birch Sørensen, 1998. "Public Finance in a Changing World: Introduction and Summary," Palgrave Macmillan Books, in: Peter Birch Sørensen (ed.), Public Finance in a Changing World, pages 1-32, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-14336-8_1
    DOI: 10.1007/978-1-349-14336-8_1
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