Political economy of policy reform in developing countries /

Krueger applies the conceptual framework of political economy to the formulation of developmental policies for less-developed nations. Though most developing countries were subjected to a debt crisis in the 1980s and a protracted malaise of slow economic growth in its aftermath, some of these countries went through very divergent experiences. Most East Asian nations came out of the recession, lowered their debt-servicing ratios, and accelerated their rates of economic growth, while others in Africa and Latin America were unable to reduce their debt burden and experienced a slow or even a negative growth. In dealing with the debt crisis and slow growth, Krueger offers three major themes to explain the interaction between economic and political variables: (1) political factors have economic consequences, which in turn can change the political equilibrium; (2) the nature of the government plays a decisive role within a political economy; and (3) neither governments nor economic policies can be considered enduring institutional factors. In her view, the mutual interaction among political and economic variables leads to various types of complex "policy cycles" that must be subjected to systematic analysis. This well-written and carefully documented volume is highly recommended for students and scholars of economic development. Advanced undergraduate through professional. O. Zinam; University of Cincinnati