Making economic adjustment work: The politics of policy implementation

This article identifies tentative lessons about successful political management of stabilization and structural adjustment policies in developing countries. It addresses three basic questions: 1) What is the purpose of stabilization and structural adjustment policies and what specific measures are usually undertaken? 2) Who, in theory, is supposed to benefit or lose from such policies and who, in actual practice, supports or opposes them? 3) How have governments in developing countries successfully managed the supporters and opponents of adjustment policies? The article concentrates in detail on how the governments of Panama, Costa Rica and Guatemala managed the actual supporters and opponents of these policies between 1982 and 1987, based on interviews with policy makers, official documents and content analysis of media sources, with the aim of determining what measures were implemented, who protested or supported them, and what the government did to build support or minimize opposition. The lessons from these three experiences are tied to the more general literature on successful political management of stabilization and structural adjustment.