Health and Education Expenditures in Russia, the Baltic States, and the Other Countries of the Former Soviet Union

Abstract

Russia, the Baltic states and the other countries of the former Soviet Union inherited health and education systems that were in need of substantial structural and financial reform. In spite of a sharp decline of real resources, this reform has barely begun. While health and education have not suffered disproportionate cuts, employment has been maintained, with real wages sharply compressed, purchases of materials reduced and energy-related spending taking a greater share of resources in many countries. Structural and financial reform would include reducing staffing and physical capacity, while increasing expenditures for materials and wages for the more highly qualified.

Fiscal transition in countries of the former Soviet Union: An interim assessment

“…In most countries, employment has increased in these sectors and relative wages have remained stable or have risen [Horton, 1996]. This is contrary to expectations which were that wages -and in consequence employment -in health and education would fall relative to wages in the rest of the economy as the market sector expanded.…”

The advice they give: Knowledge transfer of international organisations in countries of the former Soviet Union

“…The IMF’s neoliberal recommendations for all FSU countries typically involve the reduction of staff and overcapacities in the healthcare sector and increased efficiency. Healthcare spending should focus on specific aspects and target the most vulnerable groups, as well as introduce structural reforms and market elements (cf., for example, Horton, 1996; International Monetary Fund (IMF), 1997b: 29, 1997d: 87–88, 2000: 20).…”

Poverty and monetary transfers in Belarus: Some options for gradual reforms

“…See, among many,Okrasa (1988);Abel (1990);Atkinson and Micklewright (1992);Newbery (1992 and;Maret and Schwartz (1993);Perraudin (1994); Vecernik (1997);Andorka and Spéder (1997);Frick et al (1997), Milanovic (1999. Empirical evidence is now emerging also for the countries of the Former Soviet Union:Ahmad (1993);Ahmad et al, (1994);Cornelius (1994);Cheasty and Davis (1996);Horton (1996);Cornelius and Weder (1996);Surinov and Kolosnitsyn (1997);Cox et al (1997);Coudouel et al (1999). 5 Categorical transfers are here defined as benefits not explicitly targeted on the basis of income and/or wealth.…”