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Book Description: Preparatory studies for adjustment programmes usually fail to observe that they are decided in a political context, by politicians, and are bound to have far reaching political consequences. This failure is a serious analytical error which distorts theoretical conclusions, biases empirical estimates, and can lead to disastrous economic policy choices resulting in breakdown and crisis. This study of the Philippines analyzes differences in the adjustment implementation policies of two very different regimes. It shows that the decision making process is distorted by the need to satisfy the demands of interest groups whose influence changes with the constitution of the governing coalition, despite constant economic constraints.

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