Social Sector Reform in Transition Countries

Christian Keller and Peter Heller

No 2001/035, IMF Working Papers from International Monetary Fund

Abstract: During the transition process, many existing social sector institutions and policies were significantly eroded and their underlying character changed. As a result, they often do not redistribute to the poorest, nor generally serve the role of facilitating economic change. Social sector reforms have therefore become necessary for reasons of social welfare as well as economic growth. The analysis of eleven transition countries—comprising some of the most advanced as well as some of the poorest transition economies—shows that almost all countries have started to undertake reforms; however, their individual efforts vary. Reform does not only stand for cutting back, but also requires in some cases a building up and in others a redesign of social safety nets; it needs to address insurance issues, budgetary transfer programs, the performance of the health and education sector, as well as the labor market regime and the approach to tax administration.

Keywords: WP; public spending; monopoly power; pension benefit; means testing; unemployment insurance; transition economies; social sector reform; social safety nets; transition country; reform effort; demographics rank; real value; early retirement; State tax inspectorate; resource allocation; retirement age; Social assistance spending; Health care; Health care spending; Europe (search for similar items in EconPapers)
Pages: 27
Date: 2001-03-01
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Citations: View citations in EconPapers (9)

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