ABSTRACT
The purpose of this chapter is to provide a critical review of the literature on the design of structural reforms in times of crisis. The link between structural reforms and crises seems obvious; we would expect reforms to be pursued when things have gone bad (therefore, a crisis has occurred). However, the evidence is not as clear-cut as one would expect. Structural reforms do not always follow crises and even if they do, they often fail. The chapter reviews the literature on the design of structural reforms covering topics such as the initial conditions, the policy mix between fiscal consolidation and structural reforms, the timing (sequencing and pacing) and scope of the reform programme, as well as political economy considerations, in order to identify the factors that account for the success or failure of structural reforms during crises. The evidence derived from this exercise will form the theoretical and analytical background against which many of the findings of the empirical papers will be evaluated in order to draw lessons for the future.
