ABSTRACT
The World Bank's country evaluation suggests that fiscal problems have resurfaced since 1992 and the move toward greater democracy. The Comprehensive Development Framework (CDF) responds to the changing global environment by promoting more effective development assistance through national processes and institutions that address and manage the new opportunities and risks arising from the global environment. The CDF reflects a growing consensus on the key ingredients for development effectiveness through a more comprehensive and participatory approach than during the planning era of the 1960s and 1970s or the adjustment era of the 1980s and 1990s. Developing countries can thrive in the new global economy if they are able to combine economic openness with a clear domestic investment strategy and effective institutions for governance, conflict management, and inclusion. With the energy crises of the 1970s, economic distortions increased in many developing countries, forcing attention to be redirected from investment planning to macroeconomic adjustment.
