Summer 2019 POL 241 Chap 12- Dani Rodrik “Trading in Illusions”


Elayne Guzman
Chap 12- Dani Rodrik “Trading in Illusions”
Quote:
“Openness to trade and investments flows is no longer viewed simply as a component of a country’s development strategy; it has mutated into the most potent catalyst for economic growth known to humanity”

Meaning/Chosen:
    Joining the world economy is no longer a matter simply of dismantling barriers to trade and investments. Countries must comply with a long list of admission requirements from new patent rules to more rigorous banking standards. Global integration has become, for all practical purposes, a substitute for a development strategy. This strategy is not quite good for the world’s poor. By focusing on international integration, governments in poor nations divert human resources, administrative capabilities and political capital away from more urgent development priorities such as education, public health, industrial capacity and social cohesion.
  The rules for admission into the world economy not only reflect little awareness of development priorities, they are often completely unrelated to sensible economic principles. A strategy of globalization above all crowd out alternatives that are potentially more development friendly. Many of the institutional reforms needed for insertion into the world economy can be independently desirable or produce broader economic benefits. But these priorities do not necessarily coincide with the priorities of a comprehensive development agenda.


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