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Public Expenditure Policies in Southeast Europe is part of the World Bank Working Papers series. These papers are published to communicate the results of the Bank's ongoing research and to stimulate public discussion.

Development policy discussions in Eurasia often become debates about how economies can be made more diversified. For a region that is resource-rich, this is to be expected. But Eurasian economies have in many ways become less diversified during the past two decades. At the same time, people are much better off today than they were in the 1990s: poverty has been cut in half, incomes have increased fivefold, and education and health have improved noticeably since the tumultuous days following the collapse of communism. Eurasia s economies have become more efficient: they are more integrated...