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ISBN-10: 0821341154

ISBN-13: 9780821341155

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Manufactured in the United States of America. First printing April 1998 The Annual World Bank Conference on Development Economics is a forum for discussion and debate of important policy issues facing developing countries. The conferences emphasize the contribution that empirical and basic economic research can make to understanding development processes and to formulating sound development policies. Conference papers are written by researchers in and outside the World Bank. The conference series was started in 1989.

Also crucial are the environmental dynamicsin particular the high costs of rebuilding environmental stocks and, in some cases, the irreversibility of environmental losses once a threshold level of degradation has been passedand the lack of investment incentives associated with higher incomes and better environments in industrial countries, it has caused missive poverty and poverty and ecological disaster in many developing countries. To avoid these undesirable outcomes, says Löpez, government should implement measures that restrain population growth, slow the environmental dynamics, and accelerate the institutional and conventional efficiency losses associated with rural-urban migration and the transition toward private property rights.

And there are numerous other examples. Research is no less important to the future. The agenda of this year's conference is especially relevant to development effectiveness. We know that corruption is a disincentive to investors, that it exacerbates inequities and undermines social stability. But we do not as yet know nearly enough about the exact economic impact of different levels of corruption or about what kinds of policy interventions can make a difference. On incentives and performance in public organizations we know that matching a state's activities to its capacity is central to effective economic management.

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