Social Dimension of Adjustment : World title: Bank Experience, 1980-93 World Bank Operations Evaluation Study, 1011-0984 Jayarajah, Carl.; Branson, William H.; Sen, author: Binayak. publisher: World Bank isbn10 | asin: 082133610X print isbn13: 9780821336106 ebook isbn13: 9780585344430 language: English Structural adjustment (Economic policy)-- Social aspects--Developing countries, Economic development, Public welfare-- subject Developing countries, Poverty--Developing countries, Supply-side economics--Social aspects--Developing countries, World Bank- -Developing c publication date: 1996 lcc: HC59.7.J397 1996eb ddc: 339.5 Structural adjustment (Economic policy)-- Social aspects--Developing countries, Economic development, Public welfare-- subject: Developing countries, Poverty--Developing countries, Supply-side economics--Social aspects--Developing countries, World Bank- -Developing c Page i Social Dimensions of Adjustment World Bank Experience, 198093 Page ii Other Titles in the Series Prepared By The World Bank Operations Evaluation Department 1994 Evaluation Results (1996; contains summaries in French and Spanish) Ghana Country Assistance Review: A Study in Development Effectiveness (1996; contains summaries in French and Spanish) Evaluation and Development: Proceedings of the 1994 World Bank Conference (1995) Developing Industrial Technology: Lessons for Policy and Practice (1995; contains summaries in French and Spanish) The World Bank and Irrigation (1995; contains summaries in French and Spanish) Structural and Sectoral Adjustment: World Bank Experience, 198092 (1995; contains summaries in French and Spanish) Gender Issues in World Bank Lending (1995; contains summaries in French and Spanish) The World Bank's Role in Human Resource Development in Sub- Saharan Africa: Education, Training, and Technical Assistance (1994; contains summaries in French and Spanish) 1992 Evaluation Results (1994; contains summaries in French and Spanish) New Lessons from Old Projects: The Workings of Rural Development in Northeast Brazil (1993; contains summaries in French, Portuguese, and Spanish) World Bank Approaches to the Environment in Brazil (1993; contains summaries in French, Portuguese, and Spanish) Evaluation Results for 1991 (1993; contains summaries in French and Spanish) Trade Policy Reforms under Adjustment Programs (1992; contains summaries in French and Spanish) Page iii World Bank Support for Industrialization in Korea, India, and Indonesia (1992; contains summaries in French and Spanish) Population and the World Bank: Implications from Eight Case Studies (1992; contains summaries in French and Spanish) Forestry: The World Bank Experience (1992; contains summaries in French and Spanish) The Aga Khan Rural Support Program in Pakistan: Second Interim Evaluation (1990; contains summaries in French and Spanish) Page v Social Dimensions of Adjustment World Bank Experience, 198093 Carl Jayarajah William Branson Binayak Sen Page vi Copyright © 1996 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing April 1996 The opinions expressed in this report do not necessarily represent the views of the World Bank or its member governments. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. Some sources cited in this paper may be informal documents that are not readily available. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. 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Cover: Women working in a rice paddy (Sri Lanka) Photo credit: World Bank/Tomas Sennett ISSN: 1011-0984 Library of Congress Cataloging-in-Publication Data Jayarajah, Carl A. B., 1932 Social dimensions of adjustment: World Bank experience 198093 / Carl A. B. Jayarajah, William H. Branson, and Binayak Sen. p. cm. (A World Bank operations evaluation study, ISSN 1011-0984) Includes bibliographical references. ISBN 0-8213-3610-X 1. Structural adjustment (Economic policy)Social aspects Developing countries. 2. Economic development. 3. Public welfare Developing countries. 4. PovertyDeveloping countries. 5. Supply- side economicsSocial aspectsDeveloping countries. 6. World BankDeveloping countries. I. Branson, William H. II. Sen, Binayak. III. Title. IV. Series. HC59.7.J397 1996 339.5dc20 96-14517 CIP. Page vii Contents Foreword xi Prefacio xiii Préface xv Acknowledgments xvii Abbreviations and Acronyms xviii Executive Summary 1 Resumen 11 Résumé Analytique 23 1. The First Steps toward Growth and Poverty Reduction 35 Macroeconomic Framework 35 Fiscal Policy and Internal Balance 38 Resource Balance and the Exchange Rate 39 Monetary Policy and External Balance 40 Overall Results 41 2. Enhancing the Supply ResponseThe Second Steps 42 Supply-Side Reforms and Poverty 42 Supply-Side Measures 43 Country Experience 44 Investment, Adjustment Policy, and Growth 50