August 22, 2001

The Last Crusade for Economic Development

William Easterly (2001), The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics (Cambridge: MIT Press: 026205065X). Today the industrialized world as a whole is embarked--half-heartedly, I admit--on yet another crusade to try to make the poorer parts of the world rich. The ideology behind this crusade--an ideology that I believe in--is called "neoliberalism." It has two guiding principles. The first is that close economic contact between the industrial core and the developing periphery is the best way to accelerate the transfer of technology which is the sine qua non for making poor economies rich (hence all barriers to international trade should be eliminated as fast as possible). The second is that governments in general lack the capacity to run large industrial and commercial enterprises (hence save for core missions of income distribution, public-good infrastructure, administration of justice, and a few others, governments should shrink and privatize)...

Posted by DeLong at August 22, 2001 05:07 PM | TrackBack

Post a comment