Reforming budgetary processes and procedures in countries of the former Soviet Union – experiences in Azerbaijan and the Central Asian Republics

With economic restructuring came an obvious need to reform budgetary and fiscal institutions in the former Soviet republics of Azerbaijan and Central Asia. These reforms have often seriously lagged other aspects of transition. The nations found themselves shackled with resource allocation and financial management systems hopelessly wedded to the previous certainty of the command and control system, when a capacity to deal with an uncertain and dynamic external environment was paramount. These old systems have proven entirely inadequate as mechanisms for establishing and allocating resources based upon policy priorities, promoting fiscal discipline and accountability, or fostering efficiency. This article's focus is the progress of Central Asian nations toward reorienting budgetary processes and procedures to the new realities. While progress is apparent, the need for much basic system reform remains.