After three years of recession, the economy grew by 2.9 percent in 2000, supported by a revival of investment in primarily foreign-owned firms and a modest increase in household consumption. Against the background of a still nascent recovery, fiscal policy was expansionary in 2000, with the general government deficit (excluding privatization receipts and bank restructuring costs) increasing by nearly 1 percentage point to 4.1 percent of GDP. Executive Directors noted that flexibility in the conduct of monetary policy is key to ensuring that inflation remains under control.
This paper describes the reforms introduced in the New Zealand public sector since the mid-1980s. The reforms included corporatization and privatization of most state-owned enterprises, the shift from a cash-basis to an accrual-basis accounting system and the compilation of a balance sheet for the central government and its entities, performance-based arrangements for the delivery of core government outputs; and institutional changes in expenditure control mechanisms. The paper also summarizes the impact of the reforms on government revenue and spending patterns, and discusses lessons learned from New Zealand’s experience.
This volume presents the proceedings of a conference, moderated by V.A. Jafarey, held in Lahore, Pakistan. papers given at the seminar addressed fiscal reform, monetary reform, privatization, and trade liberalization in the context of IMF-supported adjustment programs, with emphasis on the Pakistani experience.