Structural Adjustment Policies in Developing Economies

摘要

The paper examines in detail the elements of a policy package that may be applied in response to external or internal shocks in the case prevalent in developing economies, when optimal policies are not applied. Thus, the recommendations simultaneously aim at responding to shocks and undertaking incentives (the exchange rate, import protection, export subsidies, and price control), incentives to save and to invest, the choice of public investments, sectoral policies in energy and agriculture, budgetary policies, and monetary policies. In the conclusions, the interdependence of the various policy measures is indicated, with further attention given to foreign borrowing. Finally, comments are offered on the international environment in which these policies operate. (Copyright (c) The World Bank 1981.)