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

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  • Farhad Noorbakhsh

    (Department of Economics, University of Glasgow, Glasgow, UK)

  • Alberto Paloni

    (Department of Economics, University of Glasgow, Glasgow, UK)

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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Bibliographic 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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Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Paul Mosley, 2001. "The IMF After the Asian Crisis: Merits and Limitations of the 'Long-term Development Partner' Role," The World Economy, Wiley Blackwell, vol. 24(5), pages 597-629, 05.
  2. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
  3. Alesina, A. & Drazen, A., 1991. "Why Are Stabilizations Delayed?," Papers 6-91, Tel Aviv - the Sackler Institute of Economic Studies.
  4. Dornbusch, Rudiger, 1991. "Credibility and Stabilization," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 837-50, August.
  5. Mosley, Paul & Subasat, Turan & Weeks, John, 1995. "Assessing adjustment in Africa," World Development, Elsevier, vol. 23(9), pages 1459-1473, September.
  6. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July.
  7. 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.
  8. Morris Goldstein & Peter Montiel, 1986. "Evaluating Fund Stabilization Programs with Multicountry Data: Some Methodological Pitfalls (Evaluation des programmes de stabilisation du Fonds à partir de données sur divers pays: quelques éc," IMF Staff Papers, Palgrave Macmillan, vol. 33(2), pages 304-344, June.
  9. Knight, Malcolm & Santaella, Julio A., 1997. "Economic determinants of IMF financial arrangements," Journal of Development Economics, Elsevier, vol. 54(2), pages 405-436, December.
  10. 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.
  11. William Easterly & Jozef Ritzen & Michael Woolcock, 2006. "Social Cohesion, Institutions, And Growth," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 103-120, 07.
  12. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, December.
  13. Alex Mourmouras & Anna Ivanova & George C. Anayotos & Wolfgang Mayer, 2003. "What Determines the Implementation of IMF-Supported Programs?," IMF Working Papers 03/8, International Monetary Fund.
  14. Ariel BUIRA, 2003. "An Analysis Of Imf Conditionality," G-24 Discussion Papers 22, United Nations Conference on Trade and Development.
  15. 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.
  16. 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.
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Cited by:
  1. Lodewijk Smets & Stephen Knack & Nadia Molenaers, 2013. "Political ideology, quality at entry and the success of economic reform programs," The Review of International Organizations, Springer, vol. 8(4), pages 447-476, December.

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