What Explains the Success or Failure of Structural Adjustment Programs? Draft: April 1998 Not for citation without permission of the authors

The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries that they represent. We would like to thank Pablo Zoido-Lobaton for excellent research assistance. Financial support from the World Bank's Research Support Budget (RPO 681-70) is gratefully acknowledged. 2 It seems clear that the lending cum conditionality process works well only when local polities have decided, largely on their own, possibly with outside technical help, to address their reform needs, effect certain policy changes sequentially, and approach the international community for financial help in getting there.