From Stabilization to Growth
The 1980s were a lost decade for Latin America, will the 1990s also be lost? For some countries stabilization has not even started. In other countries the stabilization accomplishments remain tentative and vulnerable. And even those countries that have established firmly a new path for their economic management are still waiting for economic growth to return. The hardest part of stabilization is the transition to growth. Even with major adjustment efforts in place, growth does not resume spontaneously. If the lack of recovery is due to a coordination failure than market forces cannot resolve the difficulty, a mechanism must be found to bring about the coordination.
Published: "Policies to Move from Stabilization to Growth." From Proceedings of the World Bank Annual Conference on Development Economics 1990, edited by Stanley Fischer, Dennis de Tray, and Shekhar Shah, pp. 19-48. Washington, DC: World Bank Publications, 1991.