Claudio Ferraz

Too often, even reform leaders in countries fail to adopt and implement policies that they know are necessary for sustained economic development. They are encumbered by adverse political incentives, running the risk of losing office should they try to do the right thing. When technically sound policies are selected on paper, implementation through the public system can run into perverse norms of behaviour among public officials and citizens to extract private benefits from the public sector at the expense of the greater public interest. Making Politics Work for Development is about how to make politics work for economic development rather than against it. It focuses on research about two forces - citizens’ political engagement and transparency - that explain and hold the potential to improve political incentives and norms of behaviour in the public sector. The research shows that the confluence of transparency and political engagement can be a driving force for countries to transition toward better functioning public sector institutions, starting with their own initial and contextual conditions. To harness the potential of these forces, policy actors should target transparency to nourish the quality of political engagement so that citizens can hold leaders accountable for the public goods needed for development.

Macroeconomic policies have come under justifiable scrutiny because of their powerful and pervasive impacts throughout the economy. This book examines the sustainability of growth-oriented macroeconomic strategies, starting from early ideas linking macroeconomic policies, growth and sustainability. A comprehensive and up-to-date literature review and theoretical framework are presented, including both macroeconomic and microeconomic analyses of the linkages between the economy and the environment. Brazil and Chile are used as case studies to illuminate and analyse the impacts and effects of differing macroeconomic policies. A variety of analytical models are used to assess these two very different countries. One important conclusion reached is that the combination of growth and economic imperfections that lead to unsustainable outcomes is characterized by not only economic, but also environmental and social problems. A variety of policy remedies are discussed to make development more sustainable by reshaping the structure of growth. Macroeconomists, environmental and development economists as well as policy analysts and project managers in the international development community will find much to engage them within this book. Development agencies, NGOs and graduate students interested in both the theory and applications of economic growth and sustainable development issues will also find the book of great interest.