Globalization and Competition explains why some middle-income countries, principally those in Asia, grow fast while others are not successful. The author criticizes both old-style developmentalism and the economics of the Washington Consensus. He argues instead for a 'new developmentalism' or third approach that builds on a national development strategy. This approach differs from the neoliberal strategy that rich nations propose to emerging economies principally on macroeconomic grounds. Developing countries face a key obstacle to growth, namely, the tendency to overvaluate foreign exchange. Instead of neutralizing it, the policy that rich countries promote mistakenly seeks growth through foreign savings, which causes additional appreciation of the national currency and often results in financial crises rather than genuine investment.
- ISBN10 6612817917
- ISBN13 9786612817915
- Publish Date 31 December 2009 (first published 21 December 2009)
- Publish Status Active
- Out of Print 29 December 2011
- Publish Country US
- Imprint Cambridge University Press
- Format eBook
- Pages 264
- Language English