In Pakistan, at least, changes in corporate tax rates are probably better instruments for promoting capital promoting capital formation than are increased investment tax credits. Increasing the investment tax credit stimulates more capital formation than does decreasing corporate taxes, but the tax credits also increase inflation.

In a big bang. Under gradual decontrol, speculation and hoarding create shortages which make reformist governments vulnerable to early perceptions of failure - a strong argument against gradualism in the decontrol of prices.

The need for justifying public training programs is often under appreciated. International experience strongly indicates that the cost- effectiveness of alternative options should be taken into account in the design of such programs.

There appears to be a casual link between adjustment and education but the nature of the link varies widely and is poorly understood. More monitoring, research, and analysis are needed.

Trade liberalization is more important to Eastern and Central European economies than to reforming nonsocialist economies - and will also benefit the reforming socialist economies more. But it must be accompanied, or quickly followed, by rapid privatization.