Globalization and Competition: Why Some Emergent Countries Succeed while Others Fall Behind Author: Luiz Carlos Bresser Pereira

Publisher : Cambridge University Press

ISBN-13: 9780521196352

About the Book

Globalization and Competition explains why some middle-income countries, principally those in Asia, grow fast while others are not successful. The author criticizes both old-style developmentalism and the economics of the Washington Consensus. He argues instead for a “new developmentalism” or third approach that builds on a national development strategy. This approach differs from the neoliberal strategy that rich nations propose to emerging economies principally on macroeconomic grounds. Developing countries face a key obstacle to growth, namely, the tendency to overvaluate foreign exchange. Instead of neutralizing it, the policy that rich countries promote mistakenly seeks growth through foreign savings, which causes additional appreciation of the national currency and often results in financial crises rather than genuine investment.

Contents 

Introduction 

Part I: Political Economy

  1. Globalization and Catching Up
  2. The Key Institution
  3. New Developmentalism

Part II: Development Macroeconomic

  1. The Tendency of the Exchange Rate toward Overvaluation
  2. The Dutch Disease
  3. Foreign Savings and Slow Growth
  4. Foreign Savings and Financial Crises

Conclusion