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Foreign aid and the politics of participation in economic policy reform

✍ Scribed by Deborah Bräutigam

Publisher
John Wiley and Sons
Year
2000
Tongue
English
Weight
92 KB
Volume
20
Category
Article
ISSN
0271-2075

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✦ Synopsis

Research suggests that borrower {ownership| of reforms is highly correlated with the success of reforms in developing countries[ One of the most important components of ownership is the nature of publicÐprivate relations and consultation with interest groups[ Yet participatory reform must overcome several political dilemmas\ including problems of credi! bility\ collective action\ and distributive "in#justice[ The characteristics of reforms also a}ect the possibilities for participation[ Democratic governments interested in making policy reform more participatory and presumably more sustainable can draw on several strategies\ including the selective use of incentives and compensation\ public education and communications\ capacity building in society\ institutional mechanisms for consultation\ and political sequencing of reforms[ These strategies have implications for the foreign aid agencies who often fund reforms[ They suggest that donors need to recognize the political rationality behind cross!payments and spending to maintain important constituencies^that political sustainability may require reform sequences that are out of step with current orthodoxyt hat policies ought to create winners before creating losers^that democratic consultation will require much more time in achieving consensus^and that outside actors need to refrain from intervening too directly in the political process by throwing their support behind particular interests[ Copyright

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