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Learning from structural adjustment: why selectivity may not be the key to successful programmes in Africa

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Author Info
Farhad Noorbakhsh (Department of Economics, University of Glasgow, Glasgow, UK)
Alberto Paloni (Department of Economics, University of Glasgow, Glasgow, UK)

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Abstract

Many donors have come to view selectivity in aid allocation-particularly towards countries with good governance-as the key for improving aid effectiveness. This position draws support from research according to which the success of policy reforms depends exclusively on domestic political economy factors. This finding has recently been questioned, however. This paper makes an original contribution to the literature with its attempt to identify the determinants of compliance with World Bank conditionality by employing publicly available data which evaluate a country's compliance directly. Our analysis suggests that poor compliance is not exclusively determined by exogenous factors, which the World Bank cannot influence, but is also a consequence of poor policy design. Better design of reform programmes is essential for greater aid effectiveness. Copyright © 2007 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1357
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 19 (2007)
Issue (Month): 7 ()
Pages: 927-948
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Handle: RePEc:wly:jintdv:v:19:y:2007:i:7:p:927-948

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  1. Wolfgang Mayer & Anna Ivanova & George C. Anayotos & Alex Mourmouras, 2003. "What Determines the Implementation of IMF-Supported Programs?," IMF Working Papers 03/8, International Monetary Fund. [Downloadable!]
  2. Dollar, David & Svensson, Jakob, 2000. "What Explains the Success or Failure of Structural Adjustment Programmes?," Economic Journal, Royal Economic Society, vol. 110(466), pages 894-917, October. [Downloadable!] (restricted)
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  3. Ariel BUIRA, 2003. "An Analysis Of Imf Conditionality," G-24 Discussion Papers 22, United Nations Conference on Trade and Development. [Downloadable!]
  4. Farhad Noorbakhsh & Alberto Paloni, 1998. "Structural adjustment programmes and export supply response," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(4), pages 555-573.
  5. Paul Mosley, 2001. "The IMF After the Asian Crisis: Merits and Limitations of the 'Long-term Development Partner' Role," The World Economy, Blackwell Publishing, vol. 24(5), pages 597-629, 05. [Downloadable!] (restricted)
  6. William Easterly & Jozef Ritzan & Michael Woolcock, 2006. "Social Cohesion, Institutions, and Growth," Working Papers 94, Center for Global Development. [Downloadable!]
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  7. Noorbakhsh, Farhad & Paloni, Alberto, 2001. "Structural Adjustment and Growth in Sub-Saharan Africa: The Importance of Complying with Conditionality," Economic Development and Cultural Change, University of Chicago Press, vol. 49(3), pages 479-509, April.
  8. Alesina, A. & Drazen, A., 1991. "Why Are Stabilizations Delayed?," Papers 6-91, Tel Aviv - the Sackler Institute of Economic Studies.
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  9. Dornbusch, Rudiger, 1991. "Credibility and Stabilization," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 837-50, August. [Downloadable!] (restricted)
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  10. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July. [Downloadable!] (restricted)
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  11. Knight, Malcolm & Santaella, Julio A., 1997. "Economic determinants of IMF financial arrangements," Journal of Development Economics, Elsevier, vol. 54(2), pages 405-436, December. [Downloadable!] (restricted)
  12. Mosley, Paul & Subasat, Turan & Weeks, John, 1995. "Assessing adjustment in Africa," World Development, Elsevier, vol. 23(9), pages 1459-1473, September. [Downloadable!] (restricted)
  13. Paul Mosley & John Hudson & Arjan Verschoor, 2004. "Aid, Poverty Reduction and the 'New Conditionality'," Economic Journal, Royal Economic Society, vol. 114(496), pages F217-F243, 06. [Downloadable!] (restricted)
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