Projects versus policy reform

This paper examines the interrelations between the World Bank's project (investment) loans and its policy reform (adjustment) loans. Since the late 1970's, adjustment loans have come to constitute about a quarter of annual World Bank lending. The paper proposes a framework, based on general equilibrium economics, for comparing and analyzing the two types of lending and develops methods for evaluating policy reform packages according to project-like criteria as a framework for disciplining thinking in assessing the net benefits and appropriate balances of the two types of lending. The paper observes that policy reform that reduces distortions in an economy also increases the social profitability of a range of projects; those projects that increase supply responsiveness in a particular sector strengthen the argument for reducing price distortions in that sector; and that policy reform packages should be considered projects with net return profiles and evaluated accordingly

Bibliographic Details

Main Authors:	82186 Kanbur, R., 1278 Banco Mundial, Washington, D.C. (EUA), 34173 Annual Conference on Development Economics Washington, D.C. (EUA) 26-27 Abr 1990
Format:	Texto biblioteca
Language:	eng
Published:	Washington, D.C. (EUA) 1990
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