The Global Economy
A review of the book, 'The New Global Economy and Developing Countries' by Dani Rodrik.
# 96323 | 1,711 words | 5 sources | MLA | 2006
Published on Jun 29, 2007 in Business (International) , Economics (International) , English (Analysis) , Computer and Technology (Internet) , International Relations (General)
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This paper takes a look at Dani Rodrik's book, 'The New Global Economy and Developing Countries'. According to the paper, the barriers that once stood in the way of developing a global economy, such as transportation, communication, and currency conversion, have now been taken down by the airline companies, the Internet, the International Monetary Fund (IMF) and World Trade Organization (WTO). The paper further discusses how a country which engages the world in an open mindset is able to import and purchase ideas, goods and services, capital, and institutions because of its positive relationships, and working agreements with other nations.
From the Paper:"Large differences in growth curves exist between developing nations over the past decade. Many countries, such as those in the Pacific Rim, that pursued macroeconomic stability, liberalized trade, and implemented market-based reforms in the early to mid-1980s are now well established as the high performers in the developing world. Their policies have enabled them to better withstand adverse external developments and unpredictable market variables. More recently, many other developing countries have adopted similar policy frameworks and have, in turn, made substantial progress in fostering macroeconomic stability. For many of these countries growth has exceeded expectations, and their prospects are better than they have been for some time. Growth in a number of other developing countries remains weak, however, and there are at present relatively few indications of improvement. Although policy differences do not fully explain the growth experiences among developing countries or within an individual country when compared to its neighbor, over time the lack of economic stability, inadequate and distorted financial markets, unproductive state intrusion, and inward-oriented trade policies all act to restrain growth. Although simple comparisons with the strong performers point to relatively straightforward explanations for the difficulties of low-growth countries, a closer look at their experiences suggests that their failure to grow at more satisfactory rates is attributable to a complex set of interactions among policy failures, poor governance, lack of incentives for reform, and adverse external developments. "
Sample of Sources Used:
- Chua, A. (1998, 1 Oct.) Markets, democracy, and ethnicity: toward a new paradigm for law and development. Yale Law Journal.
- Globalism. (2002) The New Dictionary of Cultural Literacy, Third Edition Hirsch, E.D., Joseph F. Kett, and James Trefil. Boston: Houghton Mifflin Company.
- Rodrik, D. (1999) The New Global Economy and Developing Countries.
- Baltimore: John Hopkins University Press.
- Why Are Some Developing Countries Failing to Catch Up (1994). World Economic Outlook.
Cite this Book Review:
The Global Economy (2007, June 29) Retrieved August 06, 2020, from https://www.academon.com/book-review/the-global-economy-96323/
"The Global Economy" 29 June 2007. Web. 06 August. 2020. <https://www.academon.com/book-review/the-global-economy-96323/>