Jump to ContentJump to Main Navigation
Beyond the World Bank AgendaAn Institutional Approach to Development$
Users without a subscription are not able to see the full content.

Howard Stein

Print publication date: 2008

Print ISBN-13: 9780226771670

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226771656.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 09 April 2020

Economic Theory and Orthodox Reform

Economic Theory and Orthodox Reform

Critical Reflections on Structural Adjustment

(p.55) Chapter Three Economic Theory and Orthodox Reform
Beyond the World Bank Agenda

Howard Stein

University of Chicago Press

Despite the increasing types of conditionality introduced by the World Bank and the IMF during the 1990s, the core program of adjustment with its trinity of stabilization, liberalization, and privatization remained intact. Moreover, the same problematic economic microfoundations, or theoretical propositions, that underlie adjustment continued to be present in many of the new strategies added to the World Bank agenda in the 1990s—a disconcerting fact given adjustment's poor performance and noted failures. This chapter explores the neoclassical economic roots of adjustment and includes a critical analysis of this strategy, focusing on errors generated by overreliance on the methodology and content of the economic theory embedded in structural adjustment policies. It is argued that the strict adherence to neoclassical economics methodology is largely to blame for the Bank's failure to question, adapt, or abandon policies despite the overwhelming evidence of downward economic trends among adjusting countries.

Keywords:   World Bank, structural adjustment, neoclassical economics, economic theory, stabilization, liberalization, privatization

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.