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The Fiscal Dimensions of Adjustment in Low-Income Countries

by Karim Nashashihi Sanjeev Gupta Claire Liuksila Henri Lorie Walter Mahler

A strengthened fiscal position is at the core of most economic adjustment programs supported by IMF lending, especially for the poorer countries that draw on the IMF's structural adjustment facilities. This paper reviews developments in 23 countries and evaluates their experience with fiscal and structural adjustment, including their efforts to design social safety nets to cushion the effects of adjustment.

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