Abstract

Countries undertaking programs of adjustment and reform supported by the SAF and ESAF have brought their economies a long way from the doldrums of the early 1980s. Real per capita output growth among nontransition ESAF users has, on average, caught up with that in other developing countries. The social indicators in most countries have improved. Roughly three-quarters of ESAF users have moved closer to external viability. Budget deficits have been trimmed, and instances of very high inflation have been virtually eliminated. Developments in the last one to two years have been even more encouraging: while this may owe something to the favorable global environment, the liberalization and restructuring undertaken over the past decade give grounds for believing that durable gains in economic potential have been achieved in the countries under review.