By Kapil Kapoor, World Bank

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238 Pesticide Policies in Developing Countries: Do They Encourage Excessive Use? Jumanah Farah No. 239 Intergovernmental Fiscal Relations in Indonesia: Issues and Reform Options. Anwar Shah and Zia Qureshi No. 240 Managing Redundancy in Overexploited Fisheries. Joshua John No. 241 Institutional Change and the Public Sector in Transitional Economies. Salvatore Schiavo-Campo No. S. Market. Tyler Biggs, Gail R. Moody, Jan-Hendrik van Leeuwen, and E. Diane White No. 243 Liberalizing Trade in Services.

Drawing on successful experiences elsewhere, the study suggested that it is imperative that African countries continue with the current strategy of avoiding overvalued exchange rates and keeping inflation and budget deficits low. In agriculture, although most adjusting countries are taxing their farmers less, the scope for continuing reforms in this sector is still large; liberalizing pricing and marketing of export and food crops has not made headway in several countries. Since most African 1 World Bank.

Adjustment Is Necessary, But Not Sufficient The report recognizes that adjustment is not a substitute for strong public investment programs, capacity building, and improvements in governance. But where there are substantial distortions that contribute to inefficient resource allocation and inhibit the development of markets, adjustment is a necessarybut not sufficientfirst step. Adjustment is neither finished, nor has it failed. It is not time to abandon adjustment efforts. What the report shows is that adjustment has not failed, but some countries have failed to adjust.

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