International Political Economy

International Political Economy - growth True culprits are...

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International Political Economy: The Politics of Trade and Development. Liberalization- Minimizing governments role in economy Removing tariffs and non-tariff barriers (environmental/quality/safety standards) Opening up sectors of the economy to foreign investors Privatization of state enterprises Deregulation Trade Openness Arguments for openness: -government inefficiencies -theory of comparative advantage (concentrate/specialize on what you are good at) -better integration into the world market. Arguments against opennss: -countries that actually practiced openness (many states in Latin America) stagnated while those that practiced some form of merchantilism or state- planning thrived. -Counter-arguments: limits of the East Asian model: non-transparency, bad loans(banks expected to be bailed out by the government. Rodrik on Trade Openness Rodkrik: no negative relationship between trade restrictions and economic
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Unformatted text preview: growth. True culprits are : ineffective institutions, inappr Rodrik prescriptions Unorthodox innovatons: public enterprises, export processing zones, incentive for priority investments, credit subsidies, infant-industry protection. Stil, development strategy is highly specific to local regions and there are no universal prescriptions. Hegemonic Stability R. Keohand, R. Gilpin, and C. Kindleberger argue that he stability of the world economic order depends on the existence of a stabilizer, or economic “hegemon” that is willing and capable of installing and maintaining global economic institutions. Chile Generals preferred a controlled economy that would obey orders. Inflation needed to be cut. Import tariffs gone, markets given free rein. Businesses privatized. Cost of living went up, gap between rich and poor grew. New democratic society....
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International Political Economy - growth True culprits are...

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