The UN General Assembly has encouraged UN bodies to foster the environment for entrepreneurship, privatisation, administrative deregulation, and to provide policy advice and technical assistance to the economies in transition (the former Soviet Union, central and eastern Europe). Financial restructuring and the development of new financial management institutions in these countries have been spurred by political urgency arising from deteriorating social conditions, and by the desire of some to join the European Union. The removal of state controls had led to rapid inflation, and much hardship for the people. The speed of reform from the qbig bangq approach was intended to overcome the political difficulties created by that hardship. An alternative argument, that gradual change, allowing time for the development of financial, banking, legal and accounting services, and for retraining, would have had a less negative impact, is also suggested. qOn the ideal pace of financial reform and institution-building, the jury is still outqloan portfolios with no time to consider building up new markets such as small business lending. ... programme until this subsidy was removed in 1994 when it was apparent that the banks could make their own way and were building up their small loan business. ... A total of 5 million dollars was set aside to fund loans in the range of 10, 000 to 100, 000 dollars to be administered by the participating banks.
|Title||:||Financial Management in Transitional Economies|
|Author||:||United Nations. Division for Public Economics and Public Administration|
|Publisher||:||United Nations Publications - 2000-01-01|