ABSTRACT
This chapter explores the politics of economic reform. It examines the influence of political institutions on the adjustment process, the links between economic conditions and the politics of reform, and the way in which the design of the program influences the pattern of political support or opposition. Economic conditions influence not only the policy agenda, but also the political actions of organized social groups and thus politicians' calculations about what can and what cannot be done. Three factors are especially relevant: the intensity and length of the economic crisis, the outcomes of previous reforms (or perceptions about those outcomes), and the distribution of income. External economic and political constraints also affect the adoption and implementation of programs. The influence of external economic and political factors on domestic policymaking in developing countries has been a subject of contentious debate for decades.
