Structural Adjustment and Liberalisation in Developing Countries: What Lessons Have We Learned?

In the context of the literature on the sequencing of reform, this paper reviews the evidence of a range of studies and draws out the lessons and implications for developing economies contemplating economic policy reform. Three questions form the core of this assessment. First, are there theoretical grounds to underpin some 'optimal' sequencing of economic reforms and is it necessary that macroeconomic reforms take precedence? Second, are reforms that are introduced gradually more enduring than a 'big bang' approach? Finally, is political stability a prerequisite to sustainable reform? The answers offered are all, to a greater or lesser degree, affirmative. Copyright 1993 by WWZ and Helbing & Lichtenhahn Verlag AG