By Robert Buckley
Read Online or Download 1998 Annual Review of Development Effectiveness PDF
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Additional info for 1998 Annual Review of Development Effectiveness
Institutions matter The crisis showed just how costly weaknesses in institutions can be-especially in the financial and social sectors. Indeed, it is now clear that strong institutions are essential for economic and social stability. Poor institutions increase the vulnerability of developing and transition economies to shifts in private investor confidence. The importance of institutional development goes far beyond avoiding crises: For Bank-supported projects, the quality of institutions can have important effects on development effectiveness.
Elimination of barriersYesForeign direct investment heavily restrictedForeign direct investment subject to government controlLimited to foreign direct investment10. Financial liberalizationYesLimited until the 1980sLimited until the 1980sYes, in the 1990sSource: Data on Korea and Taiwan are from Rodrik (1996); other data, OED, World Bank. words of Claessens and Glaessner (1997, p. " In sum, mistakes in macroeconomic policy played a part in the East Asian downturn, and an even bigger part in Russia, but the more critical dysfunction was institutional.
Nevertheless, the Bank's new strategy for maximizing development effectiveness in a volatile global environment appears well conceived. The increased emphasis on partnership and poverty alleviation stressed in the Strategic Compact, and President Wolfensohn's call to move "beyond projects" in his 1998 Annual Meetings speech, are key to maintaining the performance improvements that have been realized in the past two years. Implications The above diagnosis has the following implications foraumentar la eficacia en términos de desarrollo Se han observado importantes mejoras de la calidad de los proyectos en dos de los sectores con resultados menos satisfactorios (el financiero y el de gestión del sector público), y en África, sobre todo en la agricultura.