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How macroeconomic policies affect project performance in the social sectors

Author

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  • Kaufman, Daniel
  • Yan Wang

Abstract

The main objective of this study is to explore the realationship between a country's overall economic policy environment and the performance of investment projects in the social sectors. The authors focus on the impact of economy-wide policies including a range of fiscal, monetary, exchange rate, trade, and pricing indicators. Particular emphasis is put on the analysis of projects in education, which comprise the large majority of the Bank's social projects. The methodology combines statistical analysis and case studies, with the latter based on a broad range of sectoral reports, Project Completion Reports, Project Performance Audit Reports, and sustainability analysis conducted by the Operation Evaluation Department (OED) of the World Bank. The statistical analysis draws on the OED project data as well as the country-level policy performance variables of the World Development Report 1991 data set. The paper also briefly reviews the literature, and examines some country and project case studies which begin to suggest the relationship between economy-wide policies and projectperformance. It presents a simple analytical framework of the possible linkages between the economic policy environment and project performance. It discusses the data and empirical method and presents the results from statistical analysis.

Suggested Citation

  • Kaufman, Daniel & Yan Wang, 1992. "How macroeconomic policies affect project performance in the social sectors," Policy Research Working Paper Series 939, The World Bank.
    • Handle: RePEc:wbk:wbrwps:939
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    References listed on IDEAS

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    5. Galabawa, C.J., 1990. "Implementing Educational Policies In Tanzania," World Bank - Discussion Papers 86, World Bank.
    6. Lockheed, M.E. & Longford, N.T., 1989. "A Multilevel Model Of School Effectiveness In A Developing Country," World Bank - Discussion Papers 69, World Bank.
    7. Squire, Lyn, 1989. "Project evaluation in theory and practice," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 21, pages 1093-1137, Elsevier.
    8. Magalula, C., 1990. "Implementing Educational Policies In Swaziland," World Bank - Discussion Papers 88, World Bank.
    9. Birdsall, Nancy & James, Estelle, 1990. "Efficiency and equity in social spending : how and why governments misbehave," Policy Research Working Paper Series 274, The World Bank.
    10. Eshiwani, G.S., 1990. "Implementing Educational Policies In Kenya," World Bank - Discussion Papers 85, World Bank.
    11. Maravanyika, O.E., 1990. "Implementing Educational Policies In Zimbabwe," World Bank - Discussion Papers 91, World Bank.
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    Cited by:

    1. Jimenez, Emmanuel & DEC, 1994. "Human and physical infrastructure : public investment and pricing policies in developing countries," Policy Research Working Paper Series 1281, The World Bank.

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