Cover Image
close this bookPrivate Sector Development in Low-Income Countries - Development in Practice (WB, 1996, 188 p.)
View the document(introduction...)
View the documentForeword
View the documentAcknowledgments
View the documentAcronyms and abbreviations
View the documentDefinitions and data notes
View the documentOverview
close this folderChapter 1-From state to market uneven progress
View the document(introduction...)
View the documentRecent policy reforms
View the documentFast and slow growers
View the documentThe drag of public
View the documentRegulation and barriers to competition a harsh business environment
View the documentPoor quality of physical infrastructure and human resources
View the documentThe reform agenda
close this folderChapter 2-Establishing an attractive business environment agile firms, agile institutions
View the document(introduction...)
View the documentThe private sector's assessment of the business environment
View the documentFoundations of a dynamic private sector
View the documentSecure, flexible transactions
View the documentCompetition-and simplified regulation
View the documentEnterprise development
View the documentEfficient infrastructure
View the documentThe agenda for developing an attractive yet competitive business environment
close this folderChapter 3-Reforming public enterprise farther performing and faster
View the document(introduction...)
View the documentPublic enterprises are not performing well
View the documentTurning to the private sector—slowly
View the documentThe way forward—farther and faster
close this folderChapter 4-Building robust financial systems— difficult but pressing
View the document(introduction...)
View the documentWhat went wrong?
View the documentWhat has been done?
View the documentWhat remains to be done?
View the documentThe path for reform
View the documentSelected bibliography

(introduction...)

THE development strategies of most low-income countries in the 1960s and 1970s emphasized import-substituting industrialization with economic growth led by the state. Public enterprises dominated strategic industries, and publicly owned banks served as conduits of financial flows to prop up the enterprises. Governments generated resources by taxing agriculture and trade.

This model of development had early successes, but it was increasingly viewed as ineffective in the late 1970s and early 1980s, as economic growth slowed. Many lowincome countries found themselves with large fiscal deficits and overvalued exchange rates that were unsustainable.