Why the Order of Reforms Matters More Than the Reforms Themselves
Why the Order of Reforms Matters More Than the Reforms Themselves
Two countries can adopt the identical reform and get opposite results.
Development economists have spent decades cataloguing reforms that worked in one country and failed in another, despite near-identical design on paper. Trade liberalization that transformed one economy and destabilized a neighboring one adopting the same policy within a few years of each other. Privatization programs that built genuine competitive markets in some countries and simply transferred state monopolies into private hands in others, with no functional improvement for anyone actually using the service.
The reflexive explanation is usually institutional quality — the successful country “had better institutions.” That explanation isn’t wrong, exactly, but it’s frequently applied backward. Institutional quality is often less the precondition for a reform’s success and more the outcome of getting the reform sequence right in the first place. The order in which changes get introduced shapes whether the institutions needed to support them ever actually develop.
Reform Sequencing as Its Own Discipline
Consider trade liberalization specifically, since it’s one of the most studied cases of sequencing mattering more than the substance of the reform itself. A country that opens its markets to foreign competition before building basic regulatory and competition oversight capacity tends to see rapid consolidation into a small number of dominant firms — often foreign, sometimes simply the domestic firms with the best existing political connections — because there’s no functioning referee to prevent exactly that outcome. The identical trade liberalization, introduced after competition authorities and basic market oversight exist, tends to produce a genuinely more competitive market structure, because predatory consolidation actually has something in its way.
This is precisely the argument structure examined at length in Tomorrow Became a Country, the systems study of the United Arab Emirates by author and Group CEO Syed Raheel Shahzad. The book’s central claim rests on a specific sequence — vision converting into law before law converts into execution, execution preceding openness, openness preceding growth — and the argument isn’t simply that all these elements need to exist eventually. It’s that the order in which they’re introduced determines whether each subsequent stage actually functions as intended, or collapses under weight the previous stage was supposed to bear.
The same reform, introduced in a different order, is not the same reform. It arrives into a different set of preconditions, and those preconditions determine whether it succeeds or simply relocates the original problem somewhere less visible.
Why Getting the Order Wrong Is So Easy to Do
Political timelines and reform sequencing pull in opposite directions more often than reform designers like to admit. The reforms that produce the most visible, quickly measurable results — a market opening, a deregulation, a privatization — are frequently the ones that political leaders want to implement first, because they’re the easiest to point to as evidence of progress within a single electoral cycle. The reforms that need to happen first for genuine sustainability — building regulatory capacity, establishing independent oversight, creating enforcement mechanisms — are slow, unglamorous, and produce no visible result for years, making them the reforms most likely to get deprioritized or introduced too late.
This mismatch between political incentives and correct reform sequencing is, in practice, where a substantial share of reform failure actually originates — not from bad reform design, but from good reform design introduced in the wrong order because the order that would have worked wasn’t the order that produced visible short-term results. Institutions like The Syed Group, working across advisory and institutional development, encounter this tension directly — the pressure to deliver visible early wins competing against the discipline required to build foundational capacity first, even when that capacity-building phase produces nothing photogenic for years.
What Getting the Sequence Right Actually Requires
Correct sequencing requires a specific and often politically uncomfortable honesty: naming, explicitly, which foundational capacities need to exist before a headline reform can succeed, and being willing to delay the visible reform until those capacities are genuinely in place — rather than announcing the reform on a political timeline and hoping the supporting institutions catch up afterward.
The countries that have gotten this right share a specific pattern worth naming directly: they treated the boring, foundational work — regulatory capacity, enforcement mechanisms, institutional oversight — as the actual reform, with the visible headline change positioned as the natural consequence of that foundation being solid, rather than as the reform itself. That reframing changes both the sequence and the patience required to execute it correctly — and it’s the difference, in case after documented case, between a reform that produces the intended structural change and one that produces a headline followed, a few years later, by a quiet, largely unremarked failure.