Macroeconomic Regime, Trade Openness, Unemployment and Inequality: The Argentine Experience Roxana Maurizio

[Working Paper No. 03/2009] This paper analyzes the Argentine experience of the interactions of macroeconomic regime, labour performance, income distribution and poverty during the Convertibility Plan and the new macroeconomic regime that followed the collapse of the currency board regime. Differing theoretical perspectives are discussed, and diverse labour and social indicators analyzed. The macroeconomic framework is found to have a bearing on the social situation. Further, the negative effects of the macroeconomic configuration on the labour market and income distribution persist even after the country has resumed a growth path. The complete recovery of the standard of living conditions thus…

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…

Poverty and Inequality in the New World: Moving forward or backward? : A Critique of ‘Globalization, Poverty and Inequality since 1980’ by David Dollar Ranja Sengupta

A critique of David Dollar's recent paper argues that Dollar's argument for globalization on the ground that it has led to increasing growth in the developing world and a reduction of poverty and inequality, cannot be sustained on a closer examination. Detailed and nuanced evidence has begun to challenge the one sided view of globalization in a major way. Poverty_Inequality_ New_World  (Download the full text in PDF format)