Political management and economic policy reform: An exploration of structural adjustment experience

This article analyzes the economic policy reform experience of three less developed countries (LDCs) during the 1980s-Costa Rica, Chana and Jamaica-in three policy areas, exhange rate, trade, and agriculture. A political management model that shows how strong but skillful political leadership is as critical to policy reform success as is economic content is used for the analysis. The model proposes that government officials have to make policy reforms politically feasible if the reforms are to succeed. The assumption is that successful decision makers will take three kinds of political initiatives: (1) appeal to national sentiments, (2) seek the collaboration of affected interest groups, and (3) manage external actors. The article provides evidence that the economic performance of three countries correlated with the degree of political initiative taken. Costa Rican policy elites demonstrated the highest level of initiative. Ghana ranked second in political management, and Jamaica ranked third. The success of some LDCs also provides instructive experience for the Clinton Administration as it moves forward with a variety of policy reforms.