Structural and Sectoral Adjustment World Bank Experience, 1980-92

Adjustment lending has been the subject of considerable scrutiny and debate. Six years ago, the Operations Evaluation Department (OED) published its first review of experience with this form of lending. Since then a number of Bank reviews, regional reports, working papers on selected issues, and Banksponsored conferences and seminars have reflected on the Bank's experience with policybased lending. Although the overall benefits of SALs and SECALs are recognized, several concerns persist, especially with respect to policy design and the effect of these programs on adjusting countries. This overview identifies and addresses some of these issues. It is based primarily on a review of evaluation audits and project completion reports (PCRs) for 99 adjustment operations completed through September 30, 1991, in 42 countries. Most of these operations were approved in the mid-1980s, and the latest in fiscal 1989. The operations reviewed therefore do not include relatively recent operations or those in progress; wherever possible, however, country experience has been updated from other Bank sources. The main purpose of this overview is to draw lessons from a cross section of past experience and to suggest possible improvements in the Bank's approach to policybased lending. This executive summary is presented in two parts. The first summarizes the major findings and conclusions by chapter, and the second reviews the adjustment record and the implications for future Bank operations. [author]