Reforms, structure or institutions? Assessing the determinants of growth in low-income countries

The criticisms of globalisation and international institutions often confuse the current state of multilateralism and its asymmetrical organisation; the economic theories it uses ( the 'Washington consensus'); and the reforms it promotes, such as liberalisation. Economic stagnation, however, has many causes other than the multilateral organisations' reforms, which may have little impact on growth. These reforms may be efficient, irrelevant or powerless vis-a-vis the other determinants of growth. The paper discusses the several determinants of growth other than policy reforms, such as countries' structural and institutional characteristics, and analyses the consequences of reforms, in particular trade liberalisation. These consequences constitute a challenge to the credibility of reforms, but may also lead to deeper thinking about the determinants of economic growth and further developmental reforms.