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Policy reform was the central theme in the development economics of the 1980s. Making it so was the patent failure of internationally aided government-driven economies to foster development -- anywhere -- in the Third World. But as the desire to reform government policies for enabling market-driven economic growth was being reborn, so was the fear that many of the poorest of the poor would be even worse off in consequence. Though free markets can guarantee increased opportunities for all, they cannot, inherently, guarantee any particular results for any particular person. The latter requires coercive authority, and impersonal markets are predicated on consent. So, the challenge was/is to design and accomplish policy reforms that would effect the transition from state-driven to market-driven economies while simultaneously improving the living standards of all citizens, including the poorest.

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Eliot Berg

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