Tax Policy Choices in New Market Economies—Administrative Restrictions

Abstract

The transition from a communist economic system to a market economy raises numerous issues. One of the trickiest problems is the rearrangement of the public finance system. The traditional base, the publicly owned enterprises, is crumbling, and revenue sources have to be sought elsewhere.

The author builds on experience from the International Monetary Fund, where he served 1968–91; the opinions expressed here, however, do not necessarily represent those of the Fund or, for that matter, the Stockholm School of Economics. Mr. Charles Vehorn of the IMF and Professor Jack Mintz, University of Toronto, made useful comments, and so did the participantsat Bad Homburg.