World Development Report 1991: The Challenge Of Development


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World Development Report 1991 WORLD DEVELOPMENT INDICATORS World Development Report 1991 The Challenge of Development Published for the World Bank Oxford University Press Oxford University Press OXFORD NEW YORK TORONTO DELHI BOMBAY CALCUTI'A MADRAS KARACHI PETALING JAYA SINGAPORE HONG KONG TOKYO NAIROBI DAR ES SALAAM CAPE TOWN MELBOURNE AUCKLAND and associated companies in BERLIN IBADAN © 1991 The International Bank for Reconstruction and Development / THE WORLD BANK 1818H Street, N.W, Washington, D.C. 20433 LISA. First printing June 1991 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Manufactured in the United States of America. The denominations, the classifications, the boundaries, and the colors used in maps in World Development Report do not imply on the part of The World Bank and its affiliates any judgment on the legal or other status of any territory, or any endorsement or acceptance of any boundary. ISBN 0-19-520869-2 clothbound ISBN 0-19-520868-4 paperback ISSN 0163-5085 The Library of Congress has cataloged this serial publication as follows: World development report. 1978[New York] Oxford University Press. v. 27 cm. annual. Published for The World Bank. 1. Underdeveloped areasPeriodicals. 2. Economic development I. International Bank for Reconstruction and Development. Periodicals. HC59. 7. W659 330.9172 '4 78-67086 S This book is printed on paper that adheres to the American National Standard for Permanence of Paper for Printed Library Materials, Z39.48-1 984. Foreword World Development Report 1991, the fourteenth in this annual series, synthesizes and interprets the lessons of more than forty years of development experience. This Report, together with last year's on poverty and next year's on the environment, seeks to provide a comprehensive overview of the development agenda. The 1990s began with dramatic changes. Many countries in Eastern Europe and elsewhere initiated ambitious reforms of their economic and political systems. These reforms reflect both the accumulated evidence on economic policies and fundamental changes in the political environment. Not only in Eastern Europe, but also in Africa, Asia, Latin America, and the Middle East, people are seeking escape from poverty and oppression to gain control over their own destinies and find better lives for themselves and their families. Against the backdrop of these transitions, this year's Re- port links the historical debates that counseled institutions. Competition fosters innovation, the diffusion of technology, and the efficient use of resources. Third, successful economic development requires the integration of countries with the global economy. Openness to international flows of goods, services, capital, labor, technology, and ideas spurs economic growth. Fourth, a stable macroeconomic foundation is essential to sustained progress. Restoring the confidence of the private sector is now a major challenge for several countries with a long history of macroeconomic instability. What are the prospects for rapid development in the years ahead? The Report notes that a favorable international climate is critical for future development. The effects of the policies of industrial coun- tries on development grow, as more developing countries turn outward and the world becomes more and more interdependent. But the Report stresses that, above all, the future of developing policymakers in their past decisions,
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