Making Difficult Choices

Rama, Martin

Making Difficult Choices

Autores

Rama, Martin

Editor

World Bank, Washington, DC

Descripción

After decades of war, with a dilapidated infrastructure and millions of people dead, wounded or displaced, Vietnam could have been considered a hopeless case in economic development. Yet, it is now about to enter the ranks of middle-income countries. The obvious question is: How did this happen? This paper goes one step further, asking not which policies were adopted, but rather why they were adopted. This question is all the more intriguing because the process did not involve one group of individuals displacing another within the structure of power. To answer this question, the paper relies on the insights of those who were actually involved in the economic experiments, conceptual discussions, and political maneuvering that led to the adoption of key reforms. Especially, it builds on a series of long and regular conversations with H. E. the late Vo Van Kiet, one of Vietnam's leading figures. In doing so, it brings into the open the inside story of Doi Moi, a process that is not known by outsiders and remains opaque to most Vietnamese. The relevance of this exercise is not merely historical. Understanding how reforms were engineered may yield valuable lessons for other developing countries. It is also relevant for Vietnam, as two decades of rapid economic growth have resulted in dramatic changes in its economy and society. While praising the decision-making processes that allowed Vietnam to successfully emerge from poverty, the paper also explores the adjustments that could be needed for it to become an industrial country.

Palabras clave

ADOPTION, AGREEMENT, AGRICULTURE, ASSETS, AT, BANK BRANCHES, BANKING SECTOR, BASIC, BILATERAL TRADE, BORROWER, BUDGET, CAPITAL INFLOWS, CENTRAL BANK, CENTRAL PLANNING, CHECK, CIVIL SERVANTS, CLIMATE CHANGE, COLLAPSE, COMMERCIAL BANKS, COMPLAINTS, CONFIDENCE, CONTINGENT LIABILITIES, CONTRACT, CONTRACTS, CONTRACTUAL ARRANGEMENTS, COPYING, CORRUPTION, CREDIBILITY, CREDIT, CREDIT COOPERATIVES, DECADES OF WAR, DECISION MAKING, DECISIONS, DEVELOPING COUNTRIES, DEVELOPMENT EFFORTS, DEVELOPMENT PLANNING, DISBURSEMENTS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, ECONOMIC POLICIES, ECONOMIC REFORMS, EFFICIENT MARKETS, ENVIRONMENTAL PROTECTION, EQUITY, EXPENDITURES, EXPORTS, FAILURES, FINANCE, FINANCIAL MANAGEMENT, FINANCIAL SECTOR, FISCAL DECENTRALIZATION, FISCAL POLICIES, FOREIGN BANK, FOREIGN DIRECT INVESTMENT, GDP, GOODS, GOVERNANCE, GOVERNMENT, GOVERNMENT REVENUE, GOVERNMENTS, GRAFT, GUARANTEE, HEALTH INSURANCE, HEALTH SECTOR, HOLDING, HUMAN RESOURCES, ILLNESS, INCENTIVES, INDIVIDUAL HOUSEHOLDS, INDUSTRIAL PRODUCTION, INFLUENCE, INFORMATION, INITIATIVE, INITIATIVES, INNOVATIONS, INPUTS, INSTRUMENTS, INSURANCE, INTEREST, INTERGOVERNMENTAL TRANSFERS, INTERNATIONAL BANK, INTERNATIONAL COMMUNITY, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL TRADE, INTERNET, INVESTIGATION, INVESTIGATORS, IT, JAIL, KNOWLEDGE, LAND REFORM, LEADERSHIP, LEGAL STATUS, LENDING, LEVEL OF DEVELOPMENT, LIBERALIZATION OF TRADE, LIVING CONDITIONS, LIVING STANDARDS, LOCAL AUTHORITIES, LOCAL BANK, LOCAL POPULATION, MARKET, MARKET ECONOMIES, MARKET ECONOMY, MARKET MECHANISMS, MARKET PRICE, MIDDLE INCOME COUNTRIES, MIGRANTS, MINISTER, MINORITY, MONETARY FUND, MONETARY POLICY, MONOPOLY, NATURAL DEATH, NATURAL RESOURCE, NATURAL RESOURCE MANAGEMENT, NETWORK EXTERNALITIES, NORMALIZATION, OPTION, ORGANIZATIONS, OUTCOMES, PAYMENTS, PEACE, PENSION, PENSIONS, PLANNED ECONOMY, POLICY DEVELOPMENTS, POLICY MAKERS, POLITICAL PROCESS, POLITICAL TURMOIL, POLITICIANS, POLITICS, POPULATION, POPULATION GROUPS, POPULATIONS, POVERTY, PRACTITIONERS, PRIVATE INVESTMENT, PRIVATIZATION, PROFITS, PROGRESS, PUBLIC INVESTMENTS, PUBLIC POLICY, RECURRENT EXPENDITURES, RESOLUTION, RESPECT, RETURN, SECURITY, SERVICES, SHARE, SOCIAL SCIENCES, SOCIAL SECURITY, SOCIAL TENSIONS, SOCIAL TRANSFORMATIONS, STATE BANK, STATE PLANNING, STOCK, STORAGE, STRATEGIC INVESTORS, STRATEGIES, STRATEGY, SYSTEM, SYSTEMS, TECHNICAL ASSISTANCE, TECHNICAL CAPACITY, THEORY, TOLERANCE, TRADE BARRIERS, TRADING, TRAINING, TRANSACTION, TRANSACTION COSTS, TRANSACTIONS, TRANSITION COUNTRIES, TRANSPARENCY, URBAN AREAS, URBAN DWELLERS, VALUE, WARS, WEALTH, WELFARE, WITHDRAWAL, WORKSHOP, WORKSHOPS, WORLD TRADE ORGANIZATION, WTO