Fiscal crisis and fiscal reform in developing countries

In recent years, policy-makers in developing countries have responded to cr ises of macroeconomic instability with two sets of measures: conventional s tabilisation policies and policies of economic liberalisation. The fiscal i mplications of this double agenda are set our, following three lines of enq uiry. First, how can policies be kept consistent, when some liberalisation measures have large adverse fiscal consequences? Second, can a fiscal defic it be reduced without damaging the provision of public services vital for g rowth and poverty alleviation? Finally, since lack of tax revenue is usuall y the binding constrains on government intervention, how can this most easi ly be relaxed?.