Advertisement

Political Economy Dimensions of Economic Policy Reform

  • Oliver Morrissey
Part of the Case-Studies in Economic Development book series (CASIED)

Abstract

Assuming that the issues raised in the previous two chapters have been properly addressed and one has reliable measures and an accepted method of evaluating the impact of reforms, it remains difficult to establish why a set of reforms may appear to have failed. More generally, even if one has agreed criteria for establishing failure and success of reforms, there is still a problem in attributing causality. To allow us to focus on domestic politics, let us assume that external events have been controlled for, that the correct economic reforms were prescribed and that we can measure the degree of implementation. In such circumstances, observed failure of the reforms, in the sense that the expected improvements in economic outcomes have not occurred, can be attributed to incomplete implementation and/or inadequate responses (of agents to incentives, typically on the supply side). This chapter addresses the first of these, namely the reasons why implementation can be incomplete. We adopt a political economy approach, by which we mean we are concerned with the interface of politics and economics, rather than with politics and political systems per se. Political systems are clearly important, but attention here is confined to how economic considerations, especially the effect of reforms, influence politicians and their constituencies.

Keywords

Policy Environment Trade Liberalization Political Commitment Reform Programme Administrative Capacity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Frey, B. and R. Eichenberger (1994), ‘The Political Economy of Stabilization Programmes in Developing Countries’, European Journal of Political Economy, 10:1, pp. 169–190.CrossRefGoogle Scholar
  2. Grindle, M. and J. Thomas (1991), Public Choices and Policy Change: The Political Economy of Reform in Developing Countries, Baltimore: Johns Hopkins UP.Google Scholar
  3. Haggard, S. and S. Webb (1993), ‘What Do We Know about the Political Economy of Economic Policy Reform?’, The World Bank Research Observer, 8:2, pp. 143–168.CrossRefGoogle Scholar
  4. Harvey, C. and M. Robinson (1995), ‘Economic Reform and Political Liberalization in Uganda’, IDS Research Report 29, IDS at University of Sussex.Google Scholar
  5. Levy, B. (1993), ‘An Institutional Analysis of the Design and Sequence of Trade and Investment Policy Reform’, The World Bank Economic Review, 7:2, pp. 247–262.CrossRefGoogle Scholar
  6. Morrissey, O. (1995a), ‘Political Commitment, Institutional Capacity and Tax Policy Reform in Tanzania’, World Development, 23:4, pp. 637–649.CrossRefGoogle Scholar
  7. Morrissey, O. (1995b), ‘Politics and Economic Policy Reform: Trade Liberalization in Sub-Saharan Africa’, Journal of International Development, 7:4, pp. 599–618.CrossRefGoogle Scholar
  8. Morrissey, O. (1995c), ‘Compliance and Conditionality: The Sustainability of Adjustment in Turkey’, in O. Stokke (ed), Aid and Conditionality, London: Frank Cass for EADI, pp. 295–321.Google Scholar
  9. Mosley, P., J. Harrigan and J. Toye (1991), Aid and Power: The World Bank and Policy-Based Lending, 2 vols, London: Routledge.Google Scholar
  10. Muñoz, O. (1994), ‘Toward Trade Opening: Legacies and Current Strategies’, in J. Nelson (1994) (ed), pp. 61–104.Google Scholar
  11. Nelson, J. (1994), (ed), Intricate Links: Democratization and Market Reforms in Latin America and Eastern Europe, Washington, DC: Transactions Publishers and Overseas Development Council.Google Scholar
  12. Rodrik, D. (1989), ‘Promises, Promises: Credible Policy Reform via Signalling’, Economic Journal, 99, pp. 756–72.CrossRefGoogle Scholar
  13. Rodrik, D. (1996), ‘Understanding Economic Policy Reform’, Journal of Economic Literature, XXXIV(1), pp. 9–41.Google Scholar
  14. Sandbrook, R. (1996), ‘Democratization and the Implementation of Economic Reforms in Africa’, Journal of International Development, 8:1, pp. 1–20.CrossRefGoogle Scholar
  15. Vartiainen, J. (1996), ‘Understanding State-led Late Industrialization’, mimeo, forthcoming in V. Bergström (ed), Politics and Growth, Oxford: OUP.Google Scholar
  16. White, H. and O. Morrissey (1997), ‘Conditionality when Donor and Recipient Preferences Vary’, Journal of International Development, 9:4, pp. 497–505.CrossRefGoogle Scholar
  17. Williamson, O. (1994), ‘The Institutions of Governance of Economic Development and Reform’, Proceedings of the World Bank Annual Conference on Development Economics 1994, pp. 171–197.Google Scholar

Copyright information

© Oliver Morrissey 1999

Authors and Affiliations

  • Oliver Morrissey

There are no affiliations available

Personalised recommendations