OECD Economic Surveys: Czech Republic 2006
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OECD Economic Surveys: Czech Republic 2006

This 2006 edition of OECD's periodic review of the Czech economy finds that economic growth prospects have improved and that monetary conditions are good, but that much work is needed in public spending reform, improving the labour market, and enhancing the business environment. Special chapters examine pension reform, fiscal sustainability of state and municipal governments, modernising the education system, and boosting innovation.
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Chapter
 

Ensuring fiscal sustainability: motivating regional and municipal governments You do not have access to this content

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OECD

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This chapter looks at ways of ensuring that Czech regions and municipalities are fully motivated to make efficiency improvements in public service provision and so help achieve countrywide fiscal sustainability. The very large number of small municipalities in the Czech Republic means that scale economies are difficult to exploit and the policy options for overcoming this problem are discussed. In the financing system there are issues of transparency and of balance between autonomy for the regions and municipalities and central-government power to direct resources. In terms of accountability, questions of oversight and transparency arise in the public-procurement system and benchmarking in cost and output in public services is not yet widely used.

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