RCEP: Is the mega FTA leading us into non strategy? Smitha Francis

As the 19th Round of the RCEP (Regional Comprehensive Economic Partnership) negotiations winds up in Hyderabad, India, there are many grounds for being apprehensive about the direction in which it has moved. RCEP is one of the two proposed mega free trade agreements (FTAs) aiming at greater integration in the Asia-Pacific region, the other being the Trans-Pacific Partnership (TPP). Beginning in May 2013, the RCEP negotiations are being undertaken between the ten member countries of ASEAN and its six FTA partners Australia, China, India, Japan, New Zealand and South Korea. The initiative was launched to address concerns about the ‘noodle…

Structural Change Servaas Storm

There has been a renewed interest in industrialization and structural change in the mainstream of development economics, which, however, doesn’t imply a rejection of the neoliberal approach to development; the default recommendation is still the market and static comparative advantage and the main task of governments is to impose institutional reforms and improve governance. structural_change (Download the full text in PDF format) (This article was originally published in Development and Change, by International Institute of social Studies, The Hague)

Tanzania, Nigeria and the EU: Free trade discord Rick Rowden

From the African Union and the United Nations Economic Commission for Africa (UNECA) to the European Union and African countries’ trade and development ministers, nearly everyone agrees that African economies must industrialise. Yet despite this broad consensus, when it comes down to the specific policies needed there remains widespread disagreement. The recent refusals of Nigeria and Tanzania to sign on to the EU’s proposed free trade deals, or Economic Partnership Agreements (EPAs), are the starkest manifestation of diverging agendas. Nigeria has consistently opposed the EPA for west Africa. However Tanzania’s last minute decision in July to back away from the EPA for…

Fighting for Policy Space Jayati Ghosh

Everyone recognises that erosion of the autonomy of national policy making (or briefly put, some loss of “policy space”) has been among the important effects of various processes of economic globalisation and the institutional arrangements that have accompanied them. There are broadly two schools of thought in this regard. One sees this as both a necessary and a virtuous outcome of global integration, which forces governments to do what is “ultimately best” for them and for others, notwithstanding possible short term pain. The second view not only contests the notion of one-size-fits-all policy direction, but sees this as a significant…

Industrial Policy: A missing link in Mexico’s quest for export-led growth Juan Carlos Moreno-Brid

This article explores the need for Mexico to adopt an active industrial policy as a key instrument to assist in the nation’s so far failed quest for high and sustained growth. Industrial_Policy (Download the full text in PDF format) (This article was originally published in the Latin American Policy—Volume 4, Number 2—Pages 216–237.)

Debtors’ Crisis or Creditors’ Crisis? Who Pays for the European Sovereign and Subprime Mortgage Losses? Jan Kregel

In the context of the eurozone’s sovereign debt crisis and the US subprime mortgage crisis, this article looks at the question of how the losses ought to be distributed between borrowers and lenders in cases of debt resolution. The author points out that it is unlikely that debtors can fully bear the losses in a debt resolution. It is argued that the behavior and policy of creditors is just as important a factor to consider in assessing the situation. debtors_crisis (Download the full text in PDF format)

Is Industrial Policy Relevant in the 21st Century? Author : Mehdi Shafaeddin

Publisher: Third World Network (TWN) ISBN: 978-983-2729-33-4 About the Book The author argues, in this study, that in recent decades the need for industrial policy in developing countries has increased because of globalization and the evolving nature of the world economy. This is because international production and trade have been increasingly dominated by large transnational corporations, technological innovation has accelerated and production has become more knowledge-intensive. Yet, developing-country governments' capacity to promote the entry of domestic firms into this competitive environment has been eroded. It has been eroded by international trade rules and conditionalities imposed by international financial institutions and…

Is Industrial Policy Relevant In The 21st Century? Author : Mehdi Shafaeddin

Oil and Challenges of Trade Policy Making In Sudan in a Globalizing Arena Mehdi Shafaeddin

This paper examines the potential impact of oil revenues on the economy of Sudan and the challenges facing the Government in policy making; particularly trade policy, allocation of oil revenues for long-run development, and diversification of the production and export structure of the economy. Developing a conceptual framework of analysis, the author argues that while export of petroleum provides financial resources for the acceleration of investment and growth, prospects for sustained growth and diversification will be still limited by some physical and institutional bottlenecks, not easily overcome by just oil revenues. Export of oil may also have other negative effects…

Does Trade Openness Favour or Hinder Industrialization and Development? Mehdi Shafaeddin

The author argues that the theory behind “trade liberalization hypothesis”, the doctrine of comparative cost advantage, cannot be used as a guide to caching up and achieving dynamic comparative advantage which is a policy-based effort. International trading rules based on this doctrine are therefore not conducive to industrialization and development. There is a need for a different framework of industrial and trade policies, which however requires a radical change in international trade rules. Therefore, developing countries should not be worried to be “blamed” for defending their policy autonomy in order to enhance their development. industrilal_policy (Download the full text in PDF…

From Liberalization to Investment and Jobs: Lost in tsssranslation Yilmaz Akyüz

This paper discusses the experience of late industrializers in harnessing profits through industrial-cum-investment policies for faster accumulation. It is found that the performance of a large number of developing countries which have adopted a strategy of reigniting a dynamic process of capital accumulation and growth through a combination of rapid liberalization, increased reliance on foreign capital and reduced public investment and policy intervention is highly disappointing. The paper also examines the impact of macroeconomic and financial policies on accumulation, employment and growth, and concludes with a discussion of policy priorities. lost_translation (Download the full text in PDF format)

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