ISBN: 978-92-64-11828-7 (print)
Public expenditure remain crucial for addressing environmental problems and, more broadly, promoting a greener model of development in the countries of Eastern Europe, Caucasus and Central Asia (EECCA). Traditionally, however, the environmental sector in the EECCA countries has not been very effective in attracting domestic public financing. As the global economic and financial crisis imposes ever-tighter constraints on public budgets in the region, and as donors shift to new approaches of delivering aid via country systems, this sector becomes increasingly vulnerable to underfunding.
This report aims to help EECCA environmental administrations to harness the potential benefits of on-going public finance reforms (PFM) in the region. More specifically, it analyses the opportunities for and obstacles to integrating multi-year public environmental programmes into the medium-term expenditure frameworks (MTEFs) that a number of EECCA countries are introducing. The results from this analysis are based on a regional survey, involving ten EECCA countries, namely: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, the Kyrgyz Republic, Moldova, the Russian Federation, Ukraine and Uzbekistan. This survey was conducted within the framework of the Task Force for the Implementation of the Environmental Action Programme (EAP) for EECCA.
The analysis of the survey data shows that public spending on the environment in these countries is rather low. The share of public environmentally-related expenditure in GDP, in 2009, varies across the countries, from 0.01% in Georgia to 1.56% of GDP in Uzbekistan. On a per capita basis, these expenditure are also small and in 2009 ranged from less than one USD per capita in Georgia to about 70 USD per capita in Belarus. And compared to what national budgets in the EECCA countries spend on other social sectors (e.g. health, education), environmental ministries’ budgets are simply negligible.
The report discusses whether the policy, legal, organisational and knowledge-related pre-conditions for achieving the financial sustainability of the environmental sector are in place in the EECCA countries. The overall conclusion is that, due to limited capacity, the environmental sector benefits only marginally from PFM reforms in these countries:
This report is part of and continues the work of the OECD EAP Task Force on environmental finance that has been developed over the past 15 years.
Table of contents
Part I:Cross-country analysis
Chapter 1. Setting the scene
Chapter 2. The regional and international context
Chapter 3. Public environmental expenditure trends
Chapter 4. Budget planning and management practices
Chapter 5. Budget planning and management practices in the environmental sector
Chapter 6. Major findings and recommendations
Part II: Country fact sheets
How to obtain this publication
Access the full version of Greening Public Budgets in Eastern Europe, Caucasus and Central Asia by choosing from the following options: