This research studies the ways in which political and social configurations enable some governments to commit themselves to sustainable macroeconomic policies. Economists have stressed how important sound macroeconomic management is for sustaining economic development. However, in the past decade many developing countries have reneged on their commitment to economic restructuring and reform. In turn this has led to declining economies. This research uses Indonesia and Nigeria as case studies to compare the political conditions and informal institutional arrangements that enable some governments to commit to and implement sound macroeconomic policies. The research focuses on the role of coordination in solving problems of credible commitment and in lengthening the time horizons of politicians. In-depth surveys of policy elites and the collection of economic data help test the theoretical concepts of committing to economic reform.
