Review by Choice Review
Bonker (European University Viadrina, Germany) has produced a clear, cogent analysis of the trajectory of fiscal reform in Hungary, Poland, and the Czech Republic since 1990. He finds that fiscal reform did not generate much controversy, as it was seen as part and parcel of the transition to capitalism. There was a consensus about what needed to be done (aided by advice from the IMF and European Union). The old system was built around taxes on and subsidies for state industries; the new system had to raise sales and income taxes levied on individuals. The Poles and Czechs were more successful than the Hungarians, in large part because of more committed leadership and a solid "change team" at the finance ministry. Although radical changes were introduced on the revenue side, it turns out that spending cuts were surprisingly modest, with government spending stuck at 50 percent of GDP in Hungary while falling to 41 percent in the Czech Republic. Bonker's main interest is in tracing the policy process in each country; he does not analyze the content of fiscal policy per se, which makes the book less useful for economists. Summing Up: Recommended. Upper-division undergraduate through faculty/research collections. P. Rutland Wesleyan University
Copyright American Library Association, used with permission.
Review by Choice Review
