Modern political economy stresses
"society's polarization" as a determinant of
development outcomes. Among the most common dorms of social
conflict are class polarization, and ethnic polarization. A
middle class consensus is defined as a high share of income
for the middle class and a low degree of ethnic
polarization. A middle class consensus distinguishes
development successes from failures. A theoretical model

This Country Economic Memorandum (CEM)
looks at the potential for accelerated economic growth in
Tajikistan, where as of the peace agreement of mid-1997,
renewed reform efforts have brought stability, where
inflation is under control, small scale privatization has
been completed, and, efforts to reform agriculture have been
intensified. However, the main challenge lies in reducing
poverty through economic growth, helping the Government

Many developing country governments
discriminate against sectors that export primary
commodities. India, for example, discriminates against
cotton production. Exports of cotton have been restricted by
quotas, and the mill industry has been subject to such
regulations as the obligation to supply hank yarn for Indian
handlooms. These interventions have led to stagnating cotton
yields, rent-seeking activities, manipulation of cotton

The note reviews the cultural role of
traditional healers in communities in Ghana, and Zambia, as
one of the best hopes for treating, and stemming the spread
of AIDS. However, healers rely on medicinal plants which
have significantly decreased, as their habitats are lost
through deforestation, cultivation, overgrazing, burning
droughts, and desertification among others. This has been
exacerbated by poor management of local, and international

Since Vietnam's adoption of the doi moi or renovation policy in 1986, the country has been undergoing the transition from central planning to a socialist market-oriented economy. This has translated into strong economic growth, led by the industrial sector, which expanded more than 13 percent a year from 1993 to 1997. Vietnamese policymakers are concerned, however, that employment growth has lagged.

Although the State of Ceara, in Brazil,
is a model of good economic, and fiscal performance given
its poverty status, recent analysis show poverty remains
severe, in spite of significant reductions over the last
decade. The combination of good governance, and sound fiscal
management, industrial promotion, and public investments
have been successful, but the report questions whether
different policies, could have led to higher growth, and

The purpose ofthis report is to provide guidance to the staff of the World Bank's
Europe and Central Asia (ECA) Region with respect to mobilizing cultural assets to
support socioeconomic development in our country and regional work programs. To this
end it seeks to demonstrate how and when it makes sense for us to get involved in
activities related to cultural asset mobilization. Equally important, it also indicates how
and when we should leave cultural heritage activities to others. In particular, this report
addresses the following questions:

Bhutan has shown remarkable economic
performance over the last two decades. Growth during the
second half of the 1990s was particularly strong, with
annual Gross Domestic Product (GDP) growth averaging 6.5
percent. A large part of this performance has been supported
by generous inflows of foreign aid and buoyant electricity
exports to India, which have spurred growth both directly by
expanding export earnings and indirectly by stimulating

The authors present evidence that in
Burkina Faso, certain high-performing local institutions
contribute to equitable economic development. They link
reduced levels of poverty, and inequality to a high degree
of internal village organization. The structure of these
high-performing local organizations means they can exist in
a number of African countries, because they depend more on
internal participation, rather than on nay one

This note focuses on the economic
evaluation of more conventional infrastructure investments,
and specifically on two types of projects which may result
in significant economic restructuring - relocation of
economic activities, generation of new activities, or
changes in the way that current activities are undertaken.
The two examples used: new urban rail lines and major new
barrier crossings serve simply as examples of a much wider

Vietnam's ethnic minorities, who tend to
live mostly in remote rural areas, typically have lower
living standards than the ethnic majority. How much is this
because of differences in economic characteristics (such as
education levels and land) rather than low returns to
characteristics? Is there a self-reinforcing culture of
poverty in the minority groups, reflecting patterns of past
discrimination? The authors find that differences in levels

Economic development has brought about,
the decline in contribution of the agricultural sector to
the economy of Sri Lanka, and, consistent with this economic
transformation, the structure of employment also changed.
Thus, as labor migrates away from agriculture, the
productivity, for those who remain in the land, needs to
increase significantly. This report examines the constraints
to promoting more rapid agricultural, and rural non-farm