EconPapers    
Economics at your fingertips  
 

The Political Feasibility of Adjustment

Christian Morrisson

No 13, OECD Development Centre Policy Briefs from OECD Publishing

Abstract: In the history of adjustment, concern with the political aspects appeared only after long reflection. At the beginning of the 1980s, given the urgency of the financial crises afflicting many developing countries, the only thought was to restore macroeconomic balances, particularly the balance of payments, by means of short-term measures — budget cuts and tight monetary policy — and through devaluation. Adjustment was limited to a stabilization programme, the sole criterion being the reduction of the external deficit as rapidly as possible. It was soon realised, however, that stabilization is not an end in itself: reducing demand is not enough; it is also necessary to increase supply by improving resource allocation. Under the goading of the international organisations, stabilization measures were therefore supplemented by structural adjustment measures, such as reducing customs duties, deregulating financial markets and eliminating distortions in agricultural prices. This distinction between stabilization and structural adjustment is important from the political standpoint. In fact, a stabilization programme is a kind of emergency treatment....

Date: 1996-10-01
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1787/112047535116 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:devaab:13-en

Access Statistics for this paper

More papers in OECD Development Centre Policy Briefs from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-06-05
Handle: RePEc:oec:devaab:13-en