Growth, Debt, and Politics: Economic Adjustment and the Political Performance of Developing Countries

By Lewis W. Snider | Go to book overview

1
Introduction: The Political Crisis of
Economic Adjustment

This book addresses the question of how the political capacity of the government of a developing country affects its ability to implement structural adjustments in its economy in response to external pressures. Specifically, it addresses the question of how a government's political capacity influences the choice of adjustment policies and the implementation of those choices. Most finance ministers understand that chronic large budget deficits or resorting to foreign borrowing to finance current levels of consumption can eventually lead to a foreign exchange crisis if new domestic sources of revenue are not tapped to cover these commitments. They understand that printing money to finance deficits will lead to excessive inflation. They are aware that the net effect of maintaining an overvalued exchange rate is reduced export earnings and falling foreign exchange reserves. Yet even those who understand these relationships often fail to do much to reduce fiscal deficits and continue to finance them by printing more money. They appear unable or unwilling to realign their currencies or to cut the consumer and producer subsidies that not only increase deficits but also undermine their economic stabilization programs. Why?

Such policy choices are seldom "mistakes" in the sense that government decision makers do not foresee the outcomes of their choices. Rather they reflect political weaknesses which undermine the successful implementation of structural reforms. These weaknesses typically take three forms. First, the government may have inadequate or inefficient means of extracting resources. It is not so much a matter of the central government lacking resources, but rather of it being unable to extract, mobilize and redirect the human and material resources nominally under its control in order to achieve policy objectives. Alternatively, some governments may be able to extract unusually high levels of resources, but the way they go about doing it is harmful to the

-1-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Growth, Debt, and Politics: Economic Adjustment and the Political Performance of Developing Countries
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 242

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.