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Adjustment and Equity

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Author Info
Christian Morrisson ()
Abstract

• Adjustment does not necessarily increase poverty • Adjusting before a crisis reduces social costs • Refusal to adjust and the suspension of imports leads to self-centred underdevelopment, which is socially much more costly • The choice of macroeconomic stabilisation measures is important: the same result can be obtained with higher or lower social costs • Some structural adjustment measures have beneficial social effects but others, like the reorganisation of public enterprises, involve high costs • Action by donor countries is indispensable to offset the increase in poverty linked to stabilisation measures and to the reduction of employment in public enterprises

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Paper provided by OECD Development Centre in its series OECD Development Centre Policy Briefs with number 1.

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Date of creation: 01 Jan 1992
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Handle: RePEc:oec:devaab:1-en

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