This paper assesses the impact on the poor of the macroeconomic adjustment program undertaken in 1985-86. It finds that program-induced changes in production, employment, and real incomes have benefited the poor, while the adverse impact of program-induced price changes was modest and was...

The paper argues that over the years aid has lost its initial “developmental purpose” which was to help developing countries to overcome structural constraints on their mobilisation of domestic resources or conversion of these resources into investment. This shows up in the low levels of...