This Country Economic Memorandum reviews
the significant changes Mozambique underwent in the last
five years, specifying that to continue its rapid growth,
and reduce its high levels of poverty, the country will need
to adopt a new set of reforms. Such reforms, focused on
increasing the profitability of agriculture, and promoting
labor-intensive manufacturing activities, hold the best hope
to move poverty into prosperity. Three factors - increased

The Kyrgyz Republic suffered severe
shocks during the early years of independence, loosing its
traditional markets in the Former Soviet Union republics, as
well as substantial transfers and subsidies from the Soviet
Union, that included a falling GDP during the first five
years of transition. These circumstances prompted the Kyrgyz
Republic to adopt a wide range of reforms to accelerate the
transition to a market economy, emphasizing price and trade

Modern political economy stresses
"society's polarization" as a determinant of
development outcomes. Among the most common dorms of social
conflict are class polarization, and ethnic polarization. A
middle class consensus is defined as a high share of income
for the middle class and a low degree of ethnic
polarization. A middle class consensus distinguishes
development successes from failures. A theoretical model

The International Monetary Fund (IMF)
and the World Bank introduced the Poverty Reduction Strategy
Paper (PRSP) process in 1999 to strengthen the poverty
alleviation focus of their assistance to low-income
countries. This report reviews Nicaragua s experience with
the PRSP process, focusing on the effectiveness of IMF and
World Bank support to the process and the extent to which
the two institutions lending and non-lending activities in

If states would interact more synergistically with communities, they could tap local energies and resources for development-- and help create a development-oriented society and polity in the process. The authors analyze experience in several countries to identify the actions required for state-community synergies in development. Two actions that seem especially important: 1) Broadening the distribution of power within communities, to facilitate collective action and reduce the potential for local capture.

This report is the successor to the
Country Economic Memorandum for Tanzania prepared in 1996
(World Bank 1996). The 1996 memorandum focused on the
challenge of reforms and paid particular attention to the
impact of reforms on growth, incomes, and welfare in
Tanzania. The present report draws out lessons from
Tanzania's development experience of the past four
decades, with emphasis on the period since the last report,

The report highlights how much recent
achievements, in terms of growth, and poverty reduction, owe
to the progress the country has made on a broad front of
policy issues, such as openness to trade, investment, and
competition, as well as education, and financial regulation.
Nonetheless, progress has been uneven in several fronts,
such as the need to intensify trade liberalization, and
domestic competition; to strengthen governance across

The objective of the report is to point
at the need for a new poverty strategy, and the areas of
action it should cover, where each area should be
specifically discussed, addressing the lives of
Indonesia's poor, and the tradeoffs policymakers will
need to consider, based on the belief that this poverty
strategy should emerge from a broad dialogue among
stakeholders. First, in broadening poverty, the report looks

Vietnam grew rapidly in the 1990s, and
yet by many measures it has poor economic institutions.
Dollar seeks to explain this apparent anomaly. Between the
1980s and 1990s Vietnam carried out significant economic
reforms, notably stabilization, the introduction of positive
real interest rates, trade liberalization, and initial
property rights reform in agriculture. Relating these
changes to the empirical growth literature, the author finds

Russia and other countries in the
commonwealth of independent states that have implemented
voucher privatization programs have to account for the
puzzling behavior of insiders manager-owners-who, in
stripping assets from the firms they own, appear to be
stealing from one pocket to fill the other. This article
suggests that asset stripping and the absence of
restructuring result from interactions between insiders and

The authors analyze how property rights
affect the allocation of firms' available resources
among different types of assets. In particular, they
investigate empirically for a large number of countries
whether firms in environments with more secure property
rights allocate available resources more toward intangible
assets and consequentially grow faster. The authors find
that improved asset allocation due to better property rights

Using panel data from a unique survey of
public primary schools in Uganda, The authors assess the
degree of leakage of public funds in education. The survey
data reveal that on average during 1991-95 schools received
only 13 percent of the central government's allocation
for the schools' nonwage expenditures. Most of the
allocated funds were used by public officials for purposes
unrelated to education or captured for private gain