The design and sequencing of trade and investment policy reform : an institutional analysis

This paper analyzes from an institutional perspective the experiences of twelve countries with selected aspects of trade and investment policy reform. The analysis highlights two distinct but related determinants of the appropriate design of policy reform - the organizational capabilities of government bureaucracies, and the political flexibility of governments. There exists considerable variations among countries in their organizational capabilities and in their political commitment to change. It follows that the appropriate mix and sequence of policy reforms will be quite different. The design of lending programs supported by the World Bank should respond to these differences between countries.