|Asia Adapts to Global Change
China in Transition
Aasim M. Husain
Hong Kong, China's transparent and rules-based approach to economic
policymaking has encouraged its rapid growth over the past decade and a half. How has this
approach been applied in practice, and how can Hong Kong maintain its impressive
of the East Asian Miracle
The sustainability of the East Asian miracle is being questioned as the
region's economies are buffeted by problems. What are the problems, and how can East Asian
countries cope with them to maximize their chances of continuing their rapid growth?
Foreign Direct Investment and Regional Trade
Tamim Bayoumi and Gabrielle Lipworth
Japan's foreign direct investment abroad has boomed over the past decade
as many Japanese companies have set up production facilities overseas. What impact has
this had on Japan's manufacturing sector and trade patterns, and is it likely to continue?
World Development Report
in a Changing World
The state has an important role to play in economic and social development
as a partner, catalyst, and facilitator. An effectivenot a minimaliststate is
needed to provide the goods and servicesand rules and institutionsthat allow
markets to flourish and people to lead healthier, happier lives.
States Foster Markets?
Governments can encourage market development by clearly defining property
rights, ensuring a sound regulatory framework, and pursuing industrial policies. But what
they do in these areas should be determined by their institutional capability.
the State's Institutional Capability
An effective government is necessary for economic development. But states
may intervene in economic activity in ways that are harmful. What is needed are mechanisms
that enable the state to act in the public interest and that check arbitrary and corrupt
Decentralizing government operations can improve economic welfare. But
decentralization requires close policy coordination among all levels of government.
Public Sector Downsizing
Public sector downsizing is an important part of many developing
countries' economic reform efforts. Carrying out downsizing operations successfully is not
easy, however, and requires careful analysis, planning, and implementation.
European Monetary Union
Will EMU Have on European Securities Markets?
Alessandro Prati and Garry J. Schinasi
The introduction of the euro will create opportunities for greater
integration of Europe's financial markets. If integration and efficiency gains are
achieved, Europe's securities markets could rival US markets in size and efficiency.
Also in this Issue
Legal Systems in Developing and Transition Countries
Cheryl W. Gray
A weak legal system can undercut efforts to develop a modern,
market-oriented economy. What is the relationship between legal reform and economic
reform, and what specific steps can countries take to encourage the former?
Sector Reforms in Morocco and Tunisia
Abdelali Jbili, Klaus Enders, and Volker Treichel
Morocco and Tunisia have made determined efforts over the past decade to
reform their financial systems. How much progress have they made, and what remains to be
done to ensure that their financial sectors efficiently mobilize and allocate savings?
from the Editor
Economy in Transition
Experience Under the IMF's Enhanced Structural Adjustment Facility
IMF's Policy Development and Review Department
The Real Plan, Poverty, and Income Distribution in Brazil
A Primer on Securitization, edited by Leon T. Kendall and Michael
reviewed by Harald Hirschhofer
Can We Afford to Grow Older? by Richard Disney
reviewed by Olivia S. Mitchell
Give Us Credit: How Mohammad Yunus's Micro-Lending Revolution Is Empowering Women from
Bangladesh to Chicago by Alex Counts
Women at the Center: Grameen Bank Borrowers After One Decade by Helen Todd
reviewed by Thomas Dichter
The Pan-American Dream: Do Latin America's Cultural Values Discourage True Partnership
with the United States and Canada? by Lawrence E. Harrison
reviewed by William Easterly
Securing Employer-Based Pensions: An International Perspective, edited by Zvi
Bodie, Olivia S. Mitchell, and John A. Turner
reviewed by Albert Jaeger