Development in Developing world

Development in Developing world - path to development...

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One interesting development is this: the World Bank, in a report in 2005, changed its emphasis from the 1990’s – in essence, the World Bank argued that one could not apply one formula, namely the Washington Consensus, to economic development. This is a direct result of the failure of the Washington Consensus in the late 1990’s and early 2000’s – states that adopted the Washington Consensus did not see the same level of success as other states who ignored the economic advice of the international financial institutions. Furthermore, the meltdown of the economy in Argentina, in many ways the poster child for the Washington Consensus, called the universal applicability and economic soundness of the Washington Consensus into question. Now, the World Bank argues that institutions are more important than markets and these institutions are shaped by and are sensitive to country and culture specific factors – thus, there is not one single
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Unformatted text preview: path to development; development is a multifaceted process that is not dependent on a particular culture or a particular set of policies. Nau criticizes this view, arguing that it promotes an anything-goes approach to development – development can basically happen in any state with any type of policy. Development in the developing world – Some areas, particularly Asia, have been more successful than others in development. Four factors are involved that can potentially explain development or lack of development in the developing world. 1. Security and political development and stability, both domestically and internationally. 2. Domestic economic policies (micro and macro) 3. External economic policies (border policies) 4. Socio-cultural factors and levels of equality/inequality Depending on the area of the world we are looking at, certain factors will have more weight than others in terms of the success of development....
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