By Jean-Marc Fontaine
A good rebuttal to the orthodox view that constructing nations should still liberalise their alternate guidelines. The participants ponder either the theoretical framework and the empirical facts.
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Extra info for Foreign Trade Reforms and Development Strategy
The supply response Country studies identify several factors that may contribute to or constrain the supply response. First, growing protectionism in international markets in the 1980s has discouraged trade policy reforms, particularly those relating to agriculture. For manufactured exports, industrial countries represent promising markets because of low tariffs, but non-tariff barriers in some important product categories (for example, textiles, clothing, steel) have hurt developing country export growth.
5. First, the immediate negative effect of World Bank loan finance, coupled with the positive effects of implementation of loan conditions, suggest that such finance, far from acting as a leverage mechanism to encourage structural adjustment reforms, may in a large number of countries have simply reduced the immediate pressure to adjust by delaying the moment when radical measures have to be undertaken (see also Mosley, Hudson and Horrell 1987); but when they were undertaken they seem on balance to have helped.
For reasons of space, our discussion of the third approach here will be minimal, but there is a report on results from the modelling approach in Chapter 8 of Mosley, Harrigan and Toye (1991). We shall also confine our discussion to those performance indicators stressed by the World Bank—growth and trade performance—and ignore the important distributional effects of structural adjustment. 3 compares the levels of GNP growth, export growth, balance of payments, investment, consumption and foreign private capital inflow—five of the main targets of World Bank structural adjustment lending programmes—as between twenty countries that received World Bank structural adjustment programmes and a ‘control group’ of developing countries that did not receive adjustment loans but which in other respects (income level, prior growth rate, trend in terms of trade) were selected to be as similar as possible to the adjustment lending group.