Development Questions for 25 Years

Abstract

Recent growth experience in developing countries is reviewed, with an emphasis on structural change and sources of effective demand. How policy influences such outcomes is analyzed in light of historical experience. Options are discussed for macro and industrial/commercial policy, and how they may influence the growth process. The recent 'institutional turn' in development theory may obfuscate serious policy analysis.

Structural transformation in the world economy: On the significance of developing countries

“…The promised economic performance simply did not materialize in a very large number of countries, particularly in Africa and Latina America. Indeed, many countries that were non-conformists and adopted heterodox or unorthodox policies fared far better than the countries that were conformists and adopted orthodox policies (Taylor 2007;Nayyar 2008). This unfolding reality, which revealed a mismatch between regime change and economic performance, did not persuade orthodoxy to think about correctives in policies (except to suggest doing more of the same or doing it faster) let alone rethink strategies.…”