How do national policies affect long-run growth? A research agenda

Many developing countries that have undergone structural adjustment in the 1980s suffer from slow economic growth. To speed their recovery in the 1990s, national policies must be designed to create sustained growth and raise per capita income. This paper presents an analytical framework for national policymaking. The authors examine fiscal, monetary, and financial policies in detail, as well as policies that affect trade intervention and foreign capital. They discuss the relationship between economic recovery and well-designed policies that provide investment incentives, raise per capita income, and encourage efficient use of capital. Such policies are needed not only to improve living standards, but also to service loans that support adjustment efforts and to help lenders shape recommendations for future lending. -from Publisher