The Political Process and Management of Economic Change

image of The Political Process and Management of Economic Change

Successful implementation of economic reform is largely dependent on the political and social environment in which they are introduced. This paper was commissioned because Commonwealth countries have an interest in understanding the dynamics and management of economic reform. Dr Abbey emphasizes the importance of mobilising political support for the reform process, and identifies the obstacles met at both the design and implementation stages. He considers: how the interests of different groups should be balanced; the nature of the political environment; information asymmetries; the competence and capacity of the bureaucracy to manage reform programmes; the role played by donors; the new emerging role of the state; the need for strong institutions to support reforms; and good government. The paper stresses that political stability is essential to effective adjustment and economic growth, and emphasizes the need for the state to modernise its processes.



Overcoming Obstacles to Macroreform

The previous section dealt with some institutional, political and social obstacles to the reform process. However, at the heart of the reform process itself are fiscal and monetary issues which themselves present their own difficulties. This section discusses some attempts to overcome these difficulties.


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