Economic Growth in the 1990s (Learning from a Decade of Reform)

This book is part of a larger effort undertaken by the World Bank to understand the development experience of the 1990s, an extraordinary eventful decade. Each of the project's three volumes serves a different purpose. 'Development Challenges in the 1990s: Leading Policymakers Speak from Experience' offers insights on the practical concerns faced by policymakers, while 'At the Frontlines of Development: Reflections from the World Bank' considers the operational implications of the decade for the World Bank as an institution. This volume, 'Economic Growth in the 1990s: Learning from a Decade of Reform', provides comprehensive analysis of the decade's development experience and examines the impact of key policy and institutional reforms of growth. 'Economic Growth in the 1990s' confirms and builds on the conclusions of an earlier World Bank book, 'The East Asian Miracle' (1993), which reviewed experiences of highly successful East Asian economies. It confirms the importance of growth of fundamental principles: macro stability, market forces governing the allocation of resources, openness, and the sharing of the benefits of growth. At the same time, it echoes the finding that these principles translate into diverse policy and institutional paths, implying the economic policies and policy advice must be country-specific and institutional-sensitive if they are to be effective. The authors examine the impact of growth of key policy and institutional reforms: macroeconomic stabilization, trade liberalization, deregulation of finance, privatization, deregulation of utilities, modernization of the public sector with a view to increasing its effectiveness and accountability, and the spread of democracy and decentralization. They draw lessons both from a policy and institutional perspective and from the perspective of country experiences about how reforms in each policy and institutional area have affected growth.