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George Abonyi - Managing Reforms for Development: Political Economy of Reforms and Policy-Based Lending Case Studies

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George Abonyi Managing Reforms for Development: Political Economy of Reforms and Policy-Based Lending Case Studies
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George Abonyi - Managing Reforms for Development: Political Economy of Reforms and Policy-Based Lending Case Studies
Managing Reforms for Development: Political Economy of Reforms and Policy-Based Lending Case Studies
George Abonyi
Managing Reforms for Development: Political Economy of Reforms and Policy-Based Lending Case Studies

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ADB
Managing Reforms for Development
Political Economy of Reforms and Policy-Based Lending Case Studies
January 2013
By
George Abonyi, Romeo Bernardo, Richard Bolt, Ronald Duncan, and Christine Tang
Edited by Jonathan Aspin and Richard Bolt
Asian Development Bank
2013 Asian Development Bank
All rights reserved. Published 2013.
Printed in the Philippines.
ISBN 978-92-9092-945-1 (Print), 978-92-9092-946-8 (PDF)
Publication Stock No. BKK125203
Cataloging-In-Publication Data
Abonyi, G. et al.
Managing reforms for development: Political economy of reforms and policy-based lending case studies.
Mandaluyong City, Philippines: Asian Development Bank, 2013.
1. Policy reform. 2. Political economy. 3. Southeast Asia. 4. Pacific. 5. Policy-based lending. I. Asian Development Bank.
The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.
ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.
By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.
ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB.
Note:
In this publication, $ refers to US dollars.
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
Tel +63 2 632 4444
Fax +63 2 636 2444
www.adb.org
For orders, please contact:
Department of External Relations
Fax +63 2 636 2648
Contents
Tables, Figures, and Boxes
vii
Abbreviations
Foreword
CHAPTER 1
A Framework for Political Economy of Policy Reform and Policy-Based Lending
by George Abonyi
Introduction
Reforms and Development
The Challenge
A Framework for the Political Economy of Reform
Introduction
Government Commitment
Politics and the Process of Policy Reform
Institutions: Shaping Reforms and Implementing Change
Stages of the Policy Reform Process
Conclusion
References
CHAPTER 2
Political Economy of the Reformed Value-Added Tax in the Philippines
by Romeo Bernardo and Christine Tang
Introduction
Political Economy Context
Explaining the Odds: Reform Process of the RVAT
Getting Reform on the Agenda
Managing the Complexity of Reform Issues
Endorsing Reforms: Committing Government to the RVAT
Implementing Reforms
Sustaining Reforms
Conclusions and Lessons
References
CHAPTER 3
Reforms in the Pacific
by Richard Bolt
Introduction
Subregional Context for Pacific Reforms
Policy Reform Processes
Initiating Policy Reform
Managing Complexity of Reform Issues
Endorsing Reforms: Commitment or Complying with Conditions?
Implementing Reforms
Sustaining Reforms
Influences on the Commitment to Reform: Improving the Odds
References
CHAPTER 4
Policy Reform in Viet Nam and the Asian Development Banks State-Owned Enterprise Reform and Corporate Governance Program Loan
by George Abonyi
Background
Setting the Stage
Viet Nam in Transition
Political Institutions and Economic Management
Overview of State-Owned Enterprises
Key Elements of the SOE Reform Process up to the SCPL
Key Issues at the Time of the SCPL
The Policy Reform Process and the Viet Nam State-Owned Enterprise Reform and Corporate Governance Program Loan
Initiating Policy Reform: Getting on the Policy Agenda
Managing Complexity: Design of the SCPL
Endorsing Reforms: Approval of SCPL Reform Measures
Implementation
Sustaining the Reforms
Bumps on the Road to Reform: Politics and Institutions
The Politics of Policy Reform
Institutions: Shaping and Implementing Change
Government Commitment: Stability of Expectations
Lessons Learned: Improving the Odds
Preconditions for Policy Reform and Policy-Based Lending
Political Acceptability
Institutional Feasibility
References
CHAPTER 5
Assessing the Political Economy Factors Important for Economic Reform
by Ron Duncan
Introduction
Understanding the Political Economy of Economic Reform
Early Research
Where Are We Now?
Assessing Political Economy Factors
Indicative Measures of Political Economy Factors
The Influence of Culture
Measuring Indicators of Stakeholder Behavior
References
Tables, Figures, and Boxes
TABLES
2.1
Changes in Reform Features through the Reform Stages
3.1
Estimated Reform Costs in Pacific DMC Program Loans
5.1
Changes in Reform Features through the Reform Stages
FIGURES
1.1
Political Economy of Policy Reform and Policy-Based Lending: A Framework
2.1
Public Sector Financial Performance
2.2
Philippines Governance Indicators
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