The New Global Economy and Developing Countries
Subtitle: Making Openness Work (Overseas Development Council)
Publisher: Overseas Development Council
Published: January 13, 1999
Language: eng
Format: Paperback
Number of pages: 180
ISBN-13: 9781565170278
Subjects: Development economics; Development studies; International trade; International economic relatio; Economic Development; Economics Of Developing Countries; Business & Economics; Business / Economics / Finance; International - Economics; Business/Economics; Developing countries; Development - Economic Development; Business & Economics / Economic Development; International economic relations; Competition, International; Foreign economic relations; Free trade
First sentence: "THE FINANCE MINISTER BEGINS HIS DAY BY LOGGING ON to his computer to find out how currency and equity markets have been doing in the United States, Europe, and East Asia."
Description: Policymakers in the developing world are grappling with new dilemmas created by openness to trade and capital flows. What role, if any, remains for the state in promoting industrialization? Does openness worsen inequality, and if so, what can be done about it? What is the best way to handle turbulence from the world economy, especially the fickleness of international capital flows?

In this study, Dani Rodrik argues that successful integration into the world economy requires a complementary set of policies and institutions at home. Policymakers must reinforce their external strategy of liberalization with an internal strategy that gives the state substantial responsibility in building physical and human capital and mediating social conflicts.