ANNOTATED BIBLIOGRAPHY: STRUCTURAL ADJUSTMENT AND DEVELOPMENT POLICY

Bacha, Edmar L. and Richard E. Feinberg. "The World Bank and Structural Adjustment in Latin America," World Development. Vol 14, No. 3, 1986: 333-346.

This paper addresses the role of the World Bank and IMF in the financing of structural adjustment in Latin America. The authors' main concerns are with conditionality requirements that have constrained funding. The paper argues for a greater flow of resources and an intensification of efforts in the region. Further a review of the Bank's conditionality policies is suggested.

Bardhan, Pranab. "Symposium on the State and Economic Development," The Journal of Economic Perspectives. Vol. 4, No. 3, Summer 1990: 3-8.

The question of the role of the state has been a prevalent topic in the study of both politics and economics for some time. Bardhan's main goal is to frame a discussion regarding this topic in terms of state involvement in economic development. He frames the issue not in terms of state intervention versus non-intervention, but in terms of quality of intervention.

Callaghy, Thomas M. "Toward State Capability and Embedded Liberalism in the Third World: Lessons for Adjustment," in Fragile Coalitions: The Politics of Economic Adjustment., Joan M. Nelson, ed. Overseas Development Council: Washington D.C., 1989: 115-138.

This piece looks specifically at the links between economics and policy and the state's role in the dialogue between them. Two main areas which need to be developed, according to Callaghy, are the political links between the state and markets, and the technocratic and bureaucratic tools of the state. Political links pertain to the relationship between domestic politics, especially as they relate to stability and the ability to implement economic liberalization. The increase in technocratic ability makes for an increased capacity to gather information, to understand needs, and to formulate and implement policy decisions. The article stresses the need to look at these capabilities when determining how long successful structural change will take. The less developed the state's capabilities, the long that adjustment will most likely take if it is to work.

Fishlow, Albert. "The Latin American State," The Journal of Economic Perspectives. Vol. 4, No. 3, Summer 1990: 61-74.

Focuses on the continued need for the state to play a role in development. Fishlow deals with the issue of whether the role of the state should be diminished to allow for market liberalization and privatization. Fishlow argues that simply pulling back on the reigns of the state will not guarantee the growth of markets, and indeed, strong states have been linked to successful structural adjustment in the East Asian cases. A redesigned state that takes into account the need for the growth of markets and general liberalization is the desired outcome.

Lindenberg, Marc. "Making Economic Adjustment Work: The Politics of Policy Implementation," Policy Sciences. Vol. 22., 1989: 359-394.

This article addresses the issue of successful political management of stabilization and structural adjustment. It examines three questions: 1) What is the purpose of stabilization and structural adjustment polices, 2) Who are the winners and losers after such policies have been implemented, and 3) How have governments managed these winners and losers?
The main cases examined are Panama, Costa Rica and Guatemala.
        
Lindenberg, Marc and Noel Ramirez. Managing Adjustment in Developing Countries: Economic
and Political Perspectives . ICS Press: San Francisco., 1989.

This book approaches the issues surrounding structural adjustment in a case study/ workbook format. The emphasis is on the links between economics and politics and the need for a comprehensive study of a nation in terms of its political context before policy is implemented. Its proposed audience is the potential policy maker or implementor. It strives to create a working framework that can be applied in any case to provide guidelines, rather than to develop a theory. Several tools are suggested, focusing on such matters as the country's past economic performance, the relevant political actors, the potential problems that might arise, and so forth. The book also includes numerous case studies that work within the framework as examples. Exercises are also provided to allow the practioner he chance to examine these tools within the context of the case studies.

Nelson, Joan M. "The Politics of Long-Haul Reform," in Fragile Coalitions: The Politics of Economic Adjustment., Joan M. Nelson, ed. Overseas Development Council: Washington D.C., 1989:3-26.

The main premise of this article is that at the beginning of the 1990s many economic changes would be taking place world wide. The scope of such economic changes invariably impact on political interests. This article outlines some of the major themes relating to this conflict between economic change and political interests. As structural change takes place, many entrenched interests are attacked, and therefore change is often opposed, further liberalization policies, as stressed under structural adjustment as prescribed by the World Bank often contain anti-state policies, leading to further political conflict. However, policies aimed at the state often are contradictory, and lead to a more active role for the state in different sectors, This then leads to the need for a more efficient state, playing different roles, rather than a less-powerful one. Nelson argues that "quick-fix" solutions are not the answer to various economic problems, and that a more efficient state apparatus and an increased dialogue with International Financial Institutions need to be used to strive for long-haul plans for adjustment.

Nelson, Joan M. "Introduction: The Politics of Economic Adjustment in Developing Nations," in Economic Crisis and Policy Choice: The Politics of Adjustment in the Third World. Joan M. Nelson, ed. Princeton Univ. Press: Princeton, New Jersey., 1990: 3-32.

This piece introduces a general approach for the examination of the "systematic comparison of the political economy of adjustment." The basic question within this discussion is why do certain governments react in one way to economic crises, while others react (or do not react) in quite different fashions, with varying results. Nelson suggests three variables to consider: timing, scope and content of the responses to economic crisis.

To examine these variables, five broad casual factors are outlined (p. 18): 1) The nature of the crisis and its interpretation by those affected, 2) The technical and administrative capacity of the state, 3) The structure of political institutions and rules of the political game, 4) The more circumstantial patterns of leadership, support bases and political coalitions, and 5) The roles of external agencies.

The articles that follow take up a comparative case study approach, generally dealing with two or more cases to investigate these issues.

Rodrik, Dani. "How Should Structural Adjustment Programs be Designed?" World Development. Vol. 18, No. 7, 1990: 933-947.

The key issue driving this paper is the failure of stabilization policies. Rodrick argues that the failure to achieve long-term stability should be recognized by those who design structural adjustment programs. The paper argues that the goal of such programs should not be liberalization, but sustainability. Thus, illiberal policies that do not damage the economy are preferable to liberal policies that provide few or no benefits, as such failures will more than likely lead to further instability.

Rondinelli, Dennis A. and John D. Montgomery. "Managing Economic Reform: An Alternative Perspective on Structural Adjustment Policies," Policy Sciences. Vol 23, 1990: 73-93.

This work argues that weaknesses in administrative capabilities to manage economic reforms has led to many of the problems facing attempts at structural adjustment. Construction of a strong development administration to identify and carry out appropriate policies is pointed to as what should be a main goal for nations attempting to undertake adjustment.


copyright 1999 Steven L. Taylor