International Structural Adjustment and its Sectoral and Spatial Impacts

Structural economic adjustment has relevance and significance in OECD countries, among the countries in transition from socialism to capitalism, and in the developing countries of Asia, Africa and Latin America. Its impacts are multi-institutional being in firms, government agencies, non-government organisations and households. Institutions are having to innovate, to adapt and to reorganise to meet rapidly changing economic conditions in an increasingly competitive environment. This article evaluates the structural adjustment process. It will establish general principles for interpretation and for a newly emerging dominant political economy, the 'new political economy' (NPE) in which adjustment is being articulated. The NPE is evolving, being influenced by the post-1990 enhanced relevance of social and environmental issues, adding to the neoliberalism characteristics of the early origins of the NPE. Also, the NPE is being infused with intellectual institutionalism, especially the 'new institutional economics' (NIE). Thus, the themes in the article will include political economy, impacts of adjustment upon institutions and implications for governance and policy-making in city-regions. The arguments presented lead to a new city-regional theory and practice of development, written as operating guidelines.