Policy-makers in the developing world are now grappling with new dilemmas
created by openness to trade and capital flow. The author of this work argues
that successful integration into the world economy requires a complementary set
of policies and institutions as part of an internal strategy.Policy-makers 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 work, the author argues that successful integration into the world
economy requires a complementary set of policies and institutions at home.
Policy-makers 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.
