This paper reviews some of the major strands of the debate on growth-oriented adjustment programmes. Section I looks at recent domestic and external trends in developing countries in order to highlight the motivation for increased emphasis on growth with adjustment. Section II discusses general issues underlying growth-oriented adjustment strategies drawing upon the G-24 report and subsequent work in the Fund; Section III examines the role of the exchange rate in adjustment; and Section IV examines the role of trade policies in adjustment. Section V offers some concluding thoughts.
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