Abstract
Adjustment in Latin America has largely been analysed in terms of macroeconomic policy. However, for reforms to be sustainable in the long term, there needs to be accompanying change in the social sectors. Such reform is difficult and costly. It is necessary, however, not simply to sustain the economic reforms, but also for an effective long-term strategy of poverty alleviation and for the consolidation of democracy. There are lessons to be learnt from successful and unsuccessful social sector reform.