How Not to Urbanise Jayati Ghosh

Xi’an, in central China, is a city with long historical roots, dating at least three millennia. For much of its history it has also been of exceptional contemporary importance, as thirteen different (and significant) dynasties made it their capital. The current site is close to the city of the first Qin Emperor of China in the first century BC, whose awe-inspiring (and mostly still buried) mausoleum with thousands of terracotta figures of humans and animals remains one of the most remarkable wonders of the world. In the 7th century C.E. it was (as Changan) the capital of the extensive and…

The Continuing Need for Industrial Policy Jayati Ghosh

A panel discussion in Doha, Qatar, as part of the Thirteenth UN Conference on Trade and Development (UNCTAD XIII) brought together some economists and policy makers to provide new perspectives on industrial policies in the South. It became evident that industrial policies have been significant, if unsung, forces behind the much trumpeted “emergence” of some developing economies as major players in the world stage. For some time now, in different parts of the world, industrial policy has been making a comeback. Indeed, as participants in the panel noted, it never really went away, especially in the more successful countries, even…

South –South Regionalism and Trade Cooperation in the Asia-Pacific Region Mehdi Shafaeddin

This study of regional South-South (S-S) trade and cooperation in East, South and South-East Asian countries (ESSEA) aims to provide an economic rationale for S-S trade; shed some light on the extent and pattern of S-S trade in the ESSEA region. The study also examines the dynamic forces behind the expansion of such trade, its shortcomings and vulnerabilities and proposes policies for enhancing and strengthening regional cooperation. The main conclusion of the study is that, while the rapid expansion of trade among ESSEA countries has been mainly the result of industrialization and industrial collaboration in the form of production sharing,…

A New Developmentalist Welfare State Model in the Making? Chile in Latin America Manuel Riesco

During the 20th Century, the Chilean State presided over the modernization of the country, largely through two successive and violently conflicting strategies, which in a certain sense seem to conform a unity as well. While the country is out of this painful transition, and once again at the crossroads of yet another momentous shift in its State-led development strategy, the emerging State strategy seems to demand a closer engagement with similar processes that seem to be taking place throughout Latin America. welfare_state_model (Download the full text in PDF format)

Gender Inequality in a Globalizing World Stephanie Seguino

Emphasis on market-friendly contractionary macroeconomic policies in recent years has done little to promote greater gender equality even in the case of the managed-market approaches adopted by the East Asian late industrialisers. This paper therefore argues that gender equitable expansionary macroeconomic and development policies are required, including financial market regulation, regulation of trade and investment flows, and gender-sensitive public sector spending. gender_inequality (Download the full text in PDF format)

China and India: The big differences Jayati Ghosh

China and India seem to be the hot topics in the world economy today. In the international press, there is almost an obsession with these two economies, and how their current growth presages the coming “Asian century”. It is not just that they are both countries with large populations covering substantial and diverse geographical areas, and therefore with huge potential economic size. Most of all, they are cited as the current “success stories”: two economies in the developing world that have apparently benefited from globalisation, with relatively high and stable rates of growth for more than two decades and substantial…

Institutional Development in Developing Countries in a Historical Perspective Ha-Joon Chang

1. Introduction The issue of institutional development, especially under the slogan of "good governance", has recently come to occupy the centre stage of development policy debate. During the last decade or so, the international financial institutions (IFIs) have come to recognise the limitations of their earlier emphasis on "getting the prices right" and have accepted the importance of the institutional structure that underpins the price system. Increasingly, the IFIs and many donor governments are putting emphasis on "getting the institutions right" and attaching "governance-related conditionalities". Critics argue that the institutions of developed countries can be too demanding for developing countries…