Understanding Market Reforms, Volume 1

by McMahon (I), Gary

"During the last twenty-five years there has been a widespread move toward more market-oriented policies and institutions across the developing and former socialist (or current transition) countries, usually in the context of more politically open societies. The scope of early market-friendly reforms, which culminated in the Washington Consensus, was highly concentrated on policy reform, particularly trade, financial and fiscal policy. Over time however, the Washington consensus became just one part of a much broader reform agenda in which the inducement of institutional change took centre stage. Despite the enthusiasm with which reforms were often undertaken, the results have often been disappointing - and quite different in countries that apparently followed similar economic policies. This suggests that an analysis of the reforms cannot take place with standard economic tools but must put a strong emphasis on political economy factors and the behaviour of stakeholders. This book atte