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Exploit External Constraints

Author

Listed:
  • Tito Boeri
  • Carlo Scarpa
  • Lidia Tsyganok
  • Christian Wey
  • Micael Castanheira De Moura
  • Riccardo Faini
  • Vincenzo Galasso
  • Giorgio Barba Navaretti
  • Stéphane Carcillo
  • Jonathan Haskel
  • Giuseppe Nicoletti
  • Enrico Perotti

Abstract

This chapter takes a different angle on policy-making by recognizing that several successful reforms were actually implemented under pressure from external constraints. Although strong governments may prefer to be free to select their reform options, governments facing strong opposition may need to rely on external constraints to increase their bargaining power in the coalition building phase and to limit the opposition of lobby groups. The recipe provided in this chapter is hence to exploit external constraints, such as those imposed by World Trade Organization (WTO) rules, the Stability Pact, or International Monetary Fund (IMF) conditionality rules. The chapter concentrates on the reform experience of two transition countries - the Czech Republic and Ukraine - to highlight the role of commitment to reform provided by a truly external constraint; in this case, the European Union.

Suggested Citation

  • Tito Boeri & Carlo Scarpa & Lidia Tsyganok & Christian Wey & Micael Castanheira De Moura & Riccardo Faini & Vincenzo Galasso & Giorgio Barba Navaretti & Stéphane Carcillo & Jonathan Haskel & Giuseppe , 2007. "Exploit External Constraints," ULB Institutional Repository 2013/205655, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/205655
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