Tackling opposition to implementing fiscal reform in developing countries : The case of the infrastructure and natural resources sectors

Purpose – This paper seeks to examine ways in which political opposition to market‐oriented reforms in emerging markets can be challenged. Design/methodology/approach – An in‐depth study of two industrial sectors is undertaken – natural resource industries and infrastructure since both these sectors are closely related to poverty alleviation in developing countries. The paper is based on a two‐year discussion and review process the OECD organized among its member countries (mostly aid agencies that had been involved in fiscal reform in developing countries) in collaboration with the IMF, the World Bank, and experts and government representatives from China, India and South Africa between 2003 and 2005. Findings – A series of findings related to government policy in the face of opposition to economic reforms include an emphasis on consultation, local ownership and pragmatism. Originality/value – This paper offers clear guidance on government reforms in emerging markets based on specific analysis of key sectors.