Saturday, April 13, 2013

The Elusive Quest for Growth

Today the industrialized world as a whole is embarked--half-heartedly, I admit--on yet another trend to try to make the poorer move of the world rich. The ideology behind this stir up--an ideology that I deal in--is called neoliberalism. It has two guiding principles. The first is that close economic impinging between the industrial core and the developing periphery is the top hat way to accelerate the transfer of technology which is the sine qua non for making poor economies rich (hence all barriers to international trade should be eliminated as fast as possible). The second is that governments in general lack the capacity to run large industrial and mercenary enterprises (hence save for core missions of income distribution, public- technical infrastructure, administration of justice, and a few others, governments should trim down and privatize).

However, this neoliberal crusade is not the first such crusade for economic development. Since World War II there shake been at least six such crusades: the build socialist economy crusade, the financing gap crusade, the import substitution crusade, the aid for reproduction crusade, the oil money recycling crusade, and the population boom crusade. on the whole of them failed to spark rapid economic development. Does what went wrong then hit any lessons to tell us about the future of the crusade we are undertaking now?

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Yes--and now is a good time to take a look back at the fib of crusades-for-development since World War II, for World Bank economic expert Bill Easterly has just written The Elusive pursual for Growth, his own take on the largely dismal history of government-led programs to spark development.

These different crusades in the past overlapped in time, so there is no clear chronological sequence among them. Among the first, however, was the building socialism crusade. Easterly does not cover this: his concern is with the gauge of advice...

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