Expenditure Policies Toward EU Accession

Abstract

The report discusses the set of public expenditure policies that might be conducive to rapid growth, and convergence among Central and Eastern European countries. It was left to others' complementary contributions, to discuss two other key dimensions of expenditure reforms: the overall macroeconomic framework in which they take place, and to which they contribute, and, the institutional and political economy conditions under which successful reform strategies can be designed, find political support, and be implemented. In this report, the authors seek to take stock of the countries' own public expenditure policy objectives, and to distill the best practices and lessons learned in the design of expenditure reforms within those countries. And, the authors conclude that the general thrust of the expenditure strategies candidate countries have put forward, in their (European Union) pre-accession economic programs, appears both appropriate, and at least theoretically feasible. The report highlights ways in which key expenditure programs could be redirected to be more fully supportive of growth objectives, as well as the factors related to a country's political economy, and to the institutional framework of public resource management, which will undoubtedly play a determining role in framing what actual policy choices will eventually be made.